Research And Implementation Of Brokerage Firms Centralized Trading

Securities companies challenges in many aspects with the development of Chinese securities, financial and economical globalization, financial innovation, mixed operation trends and information network technology improvement. Those challenges include a more strict regulation,industry merger and acquisition, foreign capital Competition etc. Companies need innovation in both their business and management. The former mode of using brokerage divisions to do transactions and to manage transaction data is no longer able to meet the requirement of continuous development. Instead, there is a trend to manage all transaction activities and data by using center securities transaction system. The system helps lowering transaction costs for securities companies, which can improve the system operation and maintenance efficiency to boost companies intensification and size. Moreover, it helps the head office to regulate, avoiding risks which can help establishing the basic information system platform to achieve data sharing in the company. Furthermore the center transaction system can provide reliable data for management level team to which add value for innovation of financial products and services and improving service quality.In the securities industry , the application of IT technology is not only the tool to increase efficiency and lowering the cost, but also becoming the weapon of development and existence for those securities companies, to retain market share ,keeping competitive advantage and preventing from disaster . In the process of achieving center securities transaction ,every stages from network ,data storage backup of disaster has to be equipment considered in order to increase the system operation efficiency , the core system to provide consistent services and this has becoming the critical issue for the center securities transaction system.Based on the research of the centralized security exchange practice currently adopted by Chinese security exchange dealers, this article has integrated the theories of computer network, database middleware and clustering service etc. including the network technologies such as Ethernet channel, Layer 3 switch, Vlan etc. as well as the middleware load balance to create a complete set of solution for the centralized security exchange, in order to ensure that the requirements of high efficiency, high stability and high security necessary for the security exchange system are met. This solution is quite practicable and advanced, which is suitable for all security transaction dealers in China to be deployed in the centralized security exchange system. In the process of planning and implementation of this project, the author participated the demand analysis each sub-projects coordination and overall functional testing work, etc. which makes the author have opportunities to show her more than 10 years of accumulated experiences and project execution experiences in securities transaction systems maintaining. This essay will demonstrate the realization in the centralized security exchange system of the corporation headquarter class in the real trading environment, which enables this system become one of successful solution cases in Chinese security trading industry. In order to satisfy the system processing capability, reliability and flexibility needs of system and network, it uses the concept of hierarchy in LAN, which is divided into core exchange level and input level. On the other hand , in the WAN(wide area network), this can be achieved by using a unique structure of combination of China Telecom's SDH, China Netcom's SDH, Intranet VPN and two-way satellite technology. The center for backup of disaster can be used as middleware of business temporarily at emergency situation. During the process of designing the centralized transaction software, we have adopted the data storage and access method that is capable of separating the transacting data from the historical data and a middleware that supports a dynamic load balance, the multiple chair offering that supports a load balance. Those functions have fundamentally resolved the redundant problems in the data storage and access processes, in the middleware of the connection and communication and in the multiple chair offerings etc. as well as enables an uninterrupted service by the backup system during happenings of failure in the data server, middleware and in the offering equipment and communicating lines.The implementation of central transaction system increases the system operating efficiency, lower the probability of breakdown and makes it possible of resource sharing which lowering companies's operation costs, enhancing technical support and increasing the ability of business development. More importantly, it establishes an organic system central transaction, central management, central risk prevention and customized customer services which can be seen as the basic stage for development of companies's data center, CRM, customer service and supportive decision-making system. Before the adoption of the centralized exchange system, the overall trading systems of the stock exchanging merchants were very often broken off as a result of failures in the communication line, the hardware equipment and the trading system software etc. Since the centralized trading system was adopted, the technical failure causing an exchange stoppage has never happened. Moreover, as the centralized security exchange system is established based on a corporation headquarter class, a maximum sharing of all resources is realized for all of the trading shops subordinated to the enterprise, i.e. the equipment and device of the trading server, the price offering chair and the price offering channel etc. As a result, the economic efficiency is enhanced for the enterprise.During its promotional process, the project was well praised and warmly welcome by the relevant users, hence it can be so said that the project has a quite high practical value with a big popularizing potential.