Online Stock Broking Software Development – An Insight
If you want to buy or sell shares otherwise called stock, you go to a licensed stockbroker who will act as your agent on the floor of stock exchange. At the end of it all, you are given a share certificate by a Registrar. There are also jobbers on the floor of stock exchange who buy shares from brokers and sell them to other brokers. For new shares, the stockbroker presents the offer for subscription to the public through an issuing house which is usually a bank and subscribers are issued share certificate at the end too by a Registrar.
Daily report on activities on the floor of stock exchange are produced for stakeholders and other interested members of the public. One of the avenues for getting such reports is the official web site of a stock broking company. As usual, the web site will have the visitor’s section and the administration section where the bulk of the work on the site development lies. There are lots of technical issues involved in the software development. A software developer needs some knowledge of stock broking principles and practices and very good programming skills coupled with experience to be able to do the job. You must be sound in the use of arrays, creation of tables dynamically with DDL etc. The application is a multi-tier structure development consisting of the presentation layer, the logic layer in the middle, and the data layer containing the database.
At the visitor’s end, a client of the stockbroker should be able to access latest report at anytime on his
- Contract notes
- Account statement
- Certificate history
Except for mandates, all the above reports are prepared and processed at the administration end by authorized users with the aid of built-in programs. A client should access only his reports on logging in. The program can use the client’s unique CSCS number to accomplish this.
Some of the daily activities on the floor of stock exchange that needs to be presented to all stakeholders and other site visitors are
- All-share index
- Market capitalization
- Total number of deals
- Volume of trade
- Total value of trade
- Price gainers and losers
These information are downloadable from stock exchange site. All you need do as a programmer is to create a csv file for the downloads and from there your program will upload them into the database for onward pull out for display at anytime.
The administration section must be well secured. This is where most of the work on the software development is done. You generate reports, manage and upload all data that are meant for storage and processing. The contract notes form, for example, should be event-driven to dynamically calculate and display on the form data like NSE fee, SEC fee, CSCS fee, consideration etc after typing quantity and price for onward submission. You use event function like OnChange to accomplish this. To perform the necessary operations in the administration section, you need the following five basic modules:
- System Utilities
I will explain briefly the functions of each module.
Some of the things the accounting module should do are
- Create new client account
- Identify dormant clients
- Extract trial balance
- Compute profit and loss
- Perform data entry and posting in respect of all payments and receipts into journal using accounting principle of double-entry. Batch posting is the usual method and the program should take cognizance of this. The journal is a database table structured with fields like username, account number, amount, value date, CSCS number, stock etc.
Under stockbroking module, you
- Set up accounts for registrars, quoted companies, issuing houses
- Prepare scrips, process certificate history
- Prepare jobbing transactions, contract notes, and allotment summary
- Present reports on CSCS fee, NSE fee, SEC fee, commission value etc.
The investment module should provide the means to perform tasks like
- Bonus/dividend computation.
- Creation and termination of deals. Likewise rolling over of deals.
- Credit facilities, LPO financing, equipment leasing processing for stockbrokers that are into financing.
- Calculation of interest income.
This module will control postings to journal done at the accounting and stockbroking modules. Appropriate scripts will stop postings to the journal at the end of day, or at the end of month or at the end of the year for accounting control purposes as soon as the setting is done.
5. System Utilities
This is where you create, delete, and update
- Usernames and passwords for administration users. The passwords must be encrypted.
- Branch codes for the various branches of the stock broking firm.
- Accounting structure in terms of account format, group and type.
- Different levels of access to the modules by the administration users.