Assignment On Practice of Management Information System In ACE Capital Management Service Limited (Brokerage House) Prepared for

Dr. Syed Faisal Hassan Associate Professor University of Dhaka Adjunct Faculty East West University

Equipped By
Md. Fakhrul Islam Md. Billal Hossain Md. Badrul Alam Chowdhury ID # 2011-3-95-104 ID # 2011-2-95-049 ID # 2011-2-95-119

Date of Submission: 25 February, 2012

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Dhaka Stock Exchange (DSE) is using different software for its trading purpose. If we name some its name-TESA, MSA, MSA+, ADA SOFT, BLUECHIP come in front.DSE is maintain an automated trading system at this moment. The software maintenance services began from November 1, 2004 though DSE installed the automated trading system in the second half of 1998. The system software is HP Proprietary Non-Stop KERNEL and includes the database as part of the operating system thereby eliminating the layer typically found in most Database Management Systems (DBMS). The Database functionalities are handled by NONSTOP SQL, which is simply a different operational session for the operating system. The proprietary nature of the system software arguably enhances system security. DSE is running its online trading using TESA application under Tandem HW, supplied and supported by Cambridge Solutions Ltd, India. The application, which runs in DSE for trading, is called TESA (The Electronic Securities Architecture). TESA has two parts:

MSA (Member's Server Application)- MSA is the gateway between the traders and the Stock Exchange, which manages all the transactions and database operations between the traders and the Trading Engine

TWS (Trader workstation)- TWS is the Front-end Application closer to investors, where they can submit Buy/Sell orders for their desired securities

TESA (The Electronics Securities Architecture) is the Trading software (Based on HP proprietary O/S & DBMS). It has developed in view of Distributed Database system. In the client site it is being using SQL as local Database.

TESA Architecture: TESA software is built for the global securities markets. It uses fault tolerant computers, intelligent workstations and client / server design techniques. This provides co-operative processing, high message integrity, continuous operation and fully automatic recovery. TESA's Application Programmatic Interface (API) is the gateway to the TESA system from the outside world. All external devices connect through the API. The API provides the translation between external devices and internal processes. This means that a new process does not need to be written to support each new device, only the API needs to be modified.

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Solution Benefits: Fault Tolerance: One of the most important automation requirements for any stock exchange system is continuous system availability. With most systems Fault Tolerance is created at the application level. Fault Tolerance is a fundamental design feature of the HP Non-Stop architecture. Data Integrity: Data integrity is an integral feature of HP architecture. TESA employs standard HP tools to achieve exceptional data integrity. Scalability: The ability of an exchange to accommodate extraordinary increases in transaction volumes without loss of its Capital investment in automation is very important. The HP Non-Stop Server is massively scalable due to Parallel processors.

Principal Functions of TESA: Market Information: Supplying all market information needed to formulate the buy and sell decisions. Order Management: Accept, validate and store orders and quotes from broker workstations and / or systems. Order Execution: Automatically executes orders when buy and sell prices match. Trade Reporting: Trade execution reports are provided to each trade participant, to the settlement system and / or the depository and to the market. Index Calculation: Calculates and publishes market indices (DSE General Index & Weighted Average Index.) Market Access: Provide exchange members with efficient affordable GUI-based tools for accessing the market.

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Trading Sessions: TESA conducts trading in-5-phases. Enquiry: In this session Brokers can logon to the system. No order will be submitted in this session. No trade will be executed. Only previous orders can be withdrew in this session Opening: The Opening is a pure, single-price auction. All buy and all sell orders are compared and calculate the open-adjust price. No trades will be executed in this session Continuous Trading: During this phase, participants enter orders and immediate execution or for inclusion in the book. Automatic matching and execution takes place based on best price/ first in, first out trading rules Closing: Closing prices are calculated and disseminated to market participants Enquiry: Market will be closed in this session & other facilities like the previous enquiry session. Other Characteristics of TESA:

o Traditional trading system worldwide o Investors and users have demanded customization of the automated trading system of
Dhaka Stock Exchange (DSE) to reap the full benefits

o The TESA trader application should include key market indicators like price earning
(PE), net asset value (NAV) and earning per share (EPS) in its screen, so that investors remain update on the latest market trend

o According to market insiders, due to lack of such ready reference on the screens of the
trader workstation, the investors are being deprived of taking instant decision on the stock market transactions.

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Adasoft: Adasoft is used to maintain the information based on regular trading, shares quantity, buy and sell information, dividend received etc and also provide information to the clients like ledger, portfolio, confirmation of trading and so on. Adasoft is used by most of the brokerage house. But some Merchant Banks are more prone to use X-broker, Bluchip instead of Adasoft software because this software is more customized than Adasoft. MSA Plus:
MSA (Member's Server Application) - MSA is the gateway between the traders and the Stock Exchange, which manages all the transactions and database operations between the traders and the Trading Engine. DSE is about to introduce new updated version of MSA is called MSA PLUS. With the introduction of this software investors are about to get facilities of online trading. So it will open the door of foreign investors who are keen to invest in the capital market of Bangladesh.

The Features AdaSoft Software provides:

o Accounts receivablewhere the company enters money received o Accounts payablewhere the company enters its bills and pays money it owes o General ledgerthe company's "books" o Billingwhere the company produces invoices to clients/customers o Stock/Inventorywhere the company keeps control of its inventory o Purchase Orderwhere the company orders inventory o Sales Orderwhere the company records customer orders for the supply of inventory o Cash Bookwhere the company records collection and payment o Debt Collectionwhere the company tracks attempts to collect overdue bills
(sometimes part of accounts receivable)

o Expensewhere employee business-related expenses are entered o Inquirieswhere the company looks up information on screen without any edits or
additions

o Payrollwhere the company tracks salary, wages, and related taxes

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o Reportswhere the company prints out data o Timesheetwhere professionals (such as attorneys and consultants) record time
worked so that it can be billed to clients

o Purchase Requisitionwhere requests for purchase orders are made, approved and
tracked MSA PLUS: MSA PLUS is a online share trading system. Using this, client can sell or buy their required share through online. They can also modify or withdraw their current placed order. They also can see the latest top 10 buy and sale offer. MSA (Member's Server Application) - MSA is the gateway between the traders and the Stock Exchange, which manages all the transactions and database operations between the traders and the Trading Engine. DSE is about to introduce new updated version of MSA is called MSA PLUS. With the introduction of this software investors are about to get facilities of online trading. So it will open the door of foreign investors who are keen to invest in the capital market of Bangladesh. How it works: Trade house has to setup this software in their own online server. Then it synchronized the offers and clients share with back office to online. For the reason user can always see their current portfolio online and can trade their share anytime they want. Advantages: 1. Place order for buying / selling share from home. 2. See the current status of placed order. 3. See the latest buy and sale offers. 4. Check the portfolio report online. 5. Check the daily transaction report online. 6. Check the Confirmation report online. 7. Check the full market at a glance.
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Reference:

Mr. Nayel Jamilur Rahman (Ex- Senior Faculty, Department of Business Administration, East West University)
Managing Director ACE Capital Management Service Limited

Room No-611, Dhaka Stock Exchange Building 9/F, Mtijheel C/A, Dhaka-1000, Bangladesh. Phone # 9568469, 9569835 Cell Phone # +8801715527809 E-mail: nayelrahman@gmail.com

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