This review contains technical details regarding trading on and connecting to
the Budapest Stock Exchange Ltd. (BSE). The “Regulations of the Budapest Stock
Exchange on the Operation and Use of Remote Trading” document covers the main rules regulating the remote trading on the BSE's markets. The
IT requirements are defined in CEO resolutions or in the contracts between the
Remote Trader and the BSE.
The targeted user group includes all interested market participants who wish
to have better understanding of the technical conditions of trading at the BSE.
Overview of the BSE trading system
The BSE uses the MMTS (Multi Market Trading System) application to power both
its cash and derivatives markets. The core application developed by the Australian
Computershare is a predecessor of the X-stream trading system. The MMTS I trading
system launched in November 1998 is the trading platform for cash trading of equities,
treasury bonds and bills, corporate bonds, investment funds, mortgage bonds and
compensation notes as well as for primary treasury and equity auctions. The derivatives
(futures and options) market of the BSE is operated on the MMTS II system.
The MMTS uses three-tier client/server architecture. The fault tolerance for
a single point of failure is provided by redundant hardware components on each
layer of the architecture. The three layers are:
Central server level (two Trading Engines [TEs], online and hot standby with
automatic switchover in case of failure)
Gateway level (the purpose of the gateway computers [GWs] is to unburden the
TEs by attending the frequent inquiries of the Trader Workplaces [TWs]. Automatic
load balancing is used when TWs connect to one of the available gateways during
the login procedure)
PC based client Trader Workplaces or K2 type connection servers
BSE’s MMTS trading system follows the principles of memory based operation on
each of the three levels of the architecture. In order to facilitate high speed
transaction processing no database operations are performed during the trading
day. The database content is loaded into the central servers’ shared memory tables
at the start of the trading day.