Why are there delays in brokerage firm “TMS” operations?

Kathmandu, August 13. The preparation work for the operation of the Trading System (TMS) of the brokerage firm has not yet been completed. Investors and traders currently use the ‘WizTrade Management System’ (TMS) of the Nepal Stock Exchange (NEPSE) to buy and sell stocks and other securities.

Though the brokerage firm tested trading using its own TMS, the process was delayed due to delays in “matching” with the NEPSE system.

The TMS developed by Iron One Technology in Sri Lanka is being prepared and handed over to the brokerage houses through the DG Hub here. However, during the preparation, a senior official of the DG Hub said that the process will be taken up only after getting more support from NEPSE to match the NEPSE system.

According to him, after completing the transaction in the new TMS, the client has to access the information in the TMS. Earlier, the live testing of the business was done through secured securities. Santosh Mainali, president of Secured Securities, said: “Some people with limited skills have been doing live trading through the new TMS.”

He said that due to procedural work for comprehensive coordination of some data matters with the NEPSE system, it could not be taken forward at present. He said that preparations were being made to make the new TMS available to the general public before Dasain.

A senior official from the CDSC said it seemed that the issue with capital gains tax data should be adjusted in the new system at Digi Hub.

The official said: “There was a problem with the capital gains tax data in the Digi Hub system, there was no problem on our side.” The head of DG Hub said that the matter has been resolved.

Dharmaraj Sapkota, president of the Nepal Stockbrokers Association, said that ordinary investors do not take live Tatkal seriously as the daily trading volume is high and many investors are doing business.

“Now, when there is excitement in the business, it may be difficult for investors to see some issues after the shift to the new TMS live,” Sapkota said. “Even during the shift, the sensitivity of the market has stopped because one has to take into account the sensitivity of the market.”

Currently, 33 brokerage firms have been connected to TMS through DG Hub, and the number may increase gradually in the future. “Other brokerage firms will be added after some brokerage firms start live trading from the new TMS, as the new TMS will be equipped with modern technology and investors/traders will also adopt it.”

He said video content on how to operate the new TMS will be produced and provided to investors and businessmen, who can easily conduct business by watching the videos.

NEPSE is also actively using the new TMS. NEPSE spokesperson Murahari Parajuli said: “Around the world, the trading system belongs to the brokerage companies. We have temporarily given the TMS to the brokerage companies. The brokerage companies should use their own TMS, and then they will compete with each other in adopting modern technology.”

Currently, brokerage firms have to pay Rs 25,000 per month to use Nepsco’s TMS. However, the average monthly fee of the new TMS will be around Rs 15,000. This will bring financial benefits to brokerage firms, and they can always develop their own TMS.

Mainali claimed that they were ready to move to the new TMS after considering the market sensitivity and compatibility. He said the new TMS is available in three versions, namely mobile application, desktop version and web version. He said that stocks can be easily bought and sold using the mobile application.

“TMS has been given more features to make it easy for customers to use,” Mainali said, “Initially, we will make a video on how to use it and make it public, and customers will learn how to use the new TMS video from it.

He clarified that if the client only runs TMS for trading, then there is no need to pay any fees. In the new TMS, standard service facilities including charts and data will be provided. Brokerage firms may also charge fees for using these facilities. However, the brokerage firm said that no decision has been taken in this regard yet.

There is a provision in the Securities Trading Ordinance that gives brokerage firms the right to charge fees for trading and related services.

Similarly, NASA Security is also preparing to launch a separate TMS. NASA has purchased the TMS separately through Asterisk Technology. Managing Director Madan Paudyal said that the TMS made by India’s Dion Global Solutions will be used by NASA.

He said that they will operate a separate TMS to provide more service facilities to customers. The brokerage firm said that if a separate TMS is adopted, there will be competition among brokers in terms of modern technology, which will be beneficial to the development of the overall market.

What are the features of the new TMS?

With the current TMS, clients can load collateral for trades, but the collateral details appear to be incorrect. In the new version of TMS, after purchasing the loaded collateral, the remaining collateral will be displayed correctly.

Likewise, through the new TMS, customers will be able to see details of their trades, amounts due and amounts payable. Currently, investors have to request account details from their brokerage firms.

“With the new TMS, it will be possible to conduct statistical analysis of individual companies and use a variety of technical analysis tools,” Poudel said.

The brokerage firm said that even if there are some issues with the TMS, they can be resolved immediately. If more business tools are developed, these tools can also be incorporated into the TMS and upgraded by the brokerage firm as needed.

By viewing the charts in the new TMS, you can also develop strategies for buying and selling securities and can also view the details of your transactions.

Since “backup” transactions will also be added to the new TMS, the actual accounting will be visible on a single platform. In the current TMS, transactions occurring throughout the day are visible, but it has no connection with previous transactions and it is not possible to see one-off accounts.

Investors do not need to look at a separate app or network, as long-term transactions and accounting, their portfolios, various charts and technical analysis tools are all displayed correctly.