LankaBangla Securities Ltd signed its first-ever agreement with the Dhaka Stock Exchange (DSE) on Monday to share the Application Program Interface (API).
Sharing API will enable the brokerage firm to directly operate in the DSE trading system from its own trading interface, which it exclusively began with the port city bourse Chittagong Stock Exchange in 2013.
This offers LankaBangla brokerage clients a meaningful ease in real-time online trading as their trade orders will be placed and executed through the broker's own Order Management System (OMS).
LankaBangla's Director and Chief Technology Officer S A R MD Muinul Islam said, "Having DSE API shared, the LankaBangla authorised traders and clients will be able to trade at both the bourses from their single integrated OMS TradeXpress, which will bring efficiency and strengthen the broker's risk management."
The premier bourse said, in a statement, that a total of 24 brokerage firms have applied for API access at the DSE's matching engine provided by NASDAQ.
Of the 24 brokerage firms, the bourse entered into the first agreement with the LankaBangla Securities for user acceptance tests of API. Direct FN Ltd as the vendor of the LankaBangla OMS, is another party of the tripartite contract.
"Following the test runs going to begin this week, we are hopeful for a final run by February," said LankaBangla Securities Managing Director Mohammed Nasir Uddin Chowdhury.
DSE Managing Director Kazi Sanaul Hoq expressed his excitement about the long-awaited development.
"Gradually, if other brokerage firms begin to operate from their own OMS having access with the exchange's API, that would help boost market activities," he said in the ceremony where many senior officials from the three entities were present.
The stockbroker's technology endeavor
Almost a decade ago, LankaBangla Securities Ltd, began its extraordinary efforts to build the best IT backbone to offer excellent client services.
With an industry leading cumulative investment of over Tk50 crore, steered by both external and internal IT experts, the firm built its own: OMS platform LankaBangla TradeXpress, back office platform I-Broker, Virtual Trading window for simulation, and national ICT award-winning financial portal Lankabd.
The capital market of Bangladesh is seriously embracing automation after a rare trading shutdown during the government-declared general holidays earlier this year.
LankaBangla, as the largest firm in the brokerage industry, completed its own preparations at least five years ago, said its CTO.
He added, "Our clients almost forgot the CSE interface as they have been using TradeXpress to buy-sell shares there for the last six-to-seven years."
The same for DSE is very important as most of the market liquidity concentrates at the capital city bourse, also the oldest one occupying over 90% of stock market trading in Bangladesh.
The DSE, in recent years, has been running its mobile app with access to the DSE API to let investors trade online. But the response has yet to be satisfactory.
Complete back office solution platform I-Broker enabled LankaBangla to be the only firm in the brokerage industry, so far, that offered online fund withdrawal services during the industry's complete shutdown days in March-May.
The CTO said, "In recent years, none of our clients needed to see us in person for any services. We meaningfully automated everything long ago."
Financial portal Lankabd, attracting researchers and investors from more than 60 countries, won the 2019 National ICT award as the first financial information provider.
"We also invite every learner to keep testing and sharpening their investment and trading skills through the simulation trading platform Stock Paathshala," said Muinul Islam.