Annual Report 2004 - Georgian Stock Exchange

Trading System
Today, the GSE Trading System is a combination of
the trading rules, hardware and software designed
to ensure execution of trades in securities and maintenance,
processing and retrieval of information
essential to the execution of the trades.
The GSE Trading System encompasses the worldwide
experience and the modern approaches to
the safe and reliable execution of trades. The Trading
System software and hardware have been installed
with the assistance of the US Agency for International
Development (USAID). GSE Trading System is based
on highly reliable RTS Plaza - Russian Trading System
software. This excellent informational and communications
system was significantly modified to accommodate
the specific requirements of the GSE Trading
Rules and the business logic underlying the Georgian
securities market.
There are brokerage workstations available on the
GSE trading floor for use by GSE members to trade
securities. The trading system has the ability to
include hundreds of brokerage workstations in the
system either remotely from brokerage offices or
from the trading floor location.
The System is scalable to process intensive daily trading
in thousands of different securities and provide
data for reliable and prompt settlement of trades in
Georgian Central Securities Depository. The trading
process is maximally automated.
GSE Trading Rules and the Trading System itself
enable brokers and their clients to accomplish their
investment objectives in line with the international
standards and rules. Comfortable conditions are
maintained for brokers to support the efficient execution
of trades.
Most importantly, the Trading System and its software
are targeted to protect the interests of clients and
maintain and preserve confidential information. The
settlement cycle for all trades executed is practically
T+0, provided that the securities and funds are
deposited in advance.
The GSE Trading System was further improved during
the reporting period in order to expand services
offered to the market participants. Creation of the
stock exchange privatization auction system, design
of the application module for supporting trading of T-
bills, realization of the possibility for implementation
of trades partially secured with cash should be
noted here.
Work is being carried out for further
improvement of the Trading System.
The GSE has started to work together
with the GCSD to introduce
on-line clearing and day-trading.
Additional software is also being
developed for trade surveillance
purposes.
ANNUAL REPORT 2004
8 Georgian Stock Exchange JSC
Georgian Central Securities Depository JSC