- Brokers can use their own TMS
- They also have the option of buying from others, or from Nepse
- To start using their own, they must submit an application and give a presentation to Nepse to prove their efficacy.
Brokers will now be able to build their own Trade Management System (TMS) account and use it for share market operations. the Board of Nepal Stock Exchange (Nepse) has amended the Stock Trade Management System Operation Action Plan 2079 and allowed brokers to use their own TMS accounts.
TMS connects investors to the system of brokers and Nepse. It allows investors to start purchasing and selling shares online.
Prior to this, brokers had to use a TMS account issued by Nepse. Using their own account, however, will make services more efficient and less hassle-free.
Nepse’s Information Officer Murahari Parajuli says brokers can develop their own trade system or buy. They can also continue using the one issued by Nepse.
Brokers can use their own TMS to suit their clients
“With the implementation of the new system, brokers can use TMS as per the will of their clients. They can likewise, make their own system with more features as they require for trading. At the same time, they can also buy from Nepse and use it like before”, Parajuli added.
But for using their own TMS account, brokers will need approval. For this, the brokers first need to submit an application and detail how their system performs at Nepse with a presentation. The stock exchange reserves the right to allow a broker permission for their TMS or reject their approval. Only if the body is convinced of the system, it will approve of a TMS.
To approve, Nepse will also determine whether a broker has the necessary ICT resources to run its own trading system.
But this won’t apply when they buy the system from others. In this case, they only need to submit an application and won’t require to give a presentation on their system’s efficiency.
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What is a TMS account?
Also called broker account, TMS or Trade Management System establishes one’s ability to enter the secondary market and start buying and selling shares. In a way, it steers one’s share market arena beyond the primary market where he/she can only issue for IPOs (Initial Public Offerings).
That is if you don’t have a TMS account, you are not able to enter the secondary market, where essentially the ‘real’ share trading takes place. So a TMS account links you with ‘brokers’ and Nepse. To create a TMS account, you need to visit your preferred broker and open a broker account. Then you can log in to the specific portal for your account.
After obtaining a TMS account, you can buy or sell your shares in the secondary market.
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