World-Class Trading System

The Trading System of Shanghai Stock Exchange

After continuous upgrading, Shanghai stock exchange (SSE) has established a set of world-class systems with comprehensive functionality, advanced technology, high efficiency and sound security.

The current New Generation Trading System (NGTS), launched at the end of 2009, has leading position in its capacity, stability, matching capability, safety and parallel scalability in the world, and SSE holds the full intellectual property rights. At present, the core trading system automatically matches orders under the rule of “price priority and time priority”, satisfying the needs of over 102 million individual accounts and over 80 million individual holding record. The daily processing capacity averages 180 million orders and 180 million trades, and the peak load performance reaches 100 thousand trades per second.

Other main technical features of the New Generation Trading System include:

·Support massive individual holding detail management and complex front-end control.
·Support multi-host parallel processing based on cluster technology, easy extendable as the market growing. The trading system, which has comprehensive disaster recovery mechanism to prevent single point of failure, could switch automatically to ensure the system availability in case of technical faults.
·The one-city-dual-center operation structure, which is connected by two land lines and two-way satellites is capable of preventing communication failover, while the cluster host architecture design, which backups each other, is capable of takeover in 1 minute without any data loss in case of failure. Only a few trading system in the world can achieve this capability.
·Compatible with industrial standards such as FIX, easy for domestic and international participants to access, supporting the international businesses.
·Support multi-environments, multi-exchanges and multi-markets, providing ideal infrastructure for simulated trading and exchange hosting business.
With New Generation Trading System as the core technology, the SSE has built up a set of technical systems certified by ISO20000, which consists of seven main platforms(Matching Trade Platform, Alternative Trading Platform, Bond Trading Platform, 3rd Generation Surveillance System, Business Procedure Management system, Enterprise Resource Planning system and other platforms), based on four main infrastructures (physical infrastructure, communications infrastructure, data infrastructure and security infrastructure), providing an open, fair and impartial market environment for hundreds of millions of participants.

Orders can be sent to the SSE’s trading system through terminals either on the floor or from member securities companies. SSE owns a huge 3600-square-meter trading floor, which is the largest one in the Asia-pacific region. In addition, the largest domestic satellite and optical fiber communication network, which can disseminate the real-time transaction information across the country and the globe, has connected SSE with more than 5000 trading terminals.

SSE has taken the lead in establishing a nation-wide satellite telecommunication network with the most sophisticated equipment, the most complete range of functions, the largest number of users and the widest coverage. It consists of more than 4000 DMRs and 1000 two-way substations and provides high performance delivery of trading instructions, market data, clearance data and announcements. The ratio of safe operation of the communication system stays above 99.99% over years.

The functionality of SSE’s technical system is highly comprehensive. It can provide reliable and convenient trading services for investors with 5 types of instruments: stocks, bonds, funds, warrants and futures, and can support various trading modes such as the continuous auction mode, the call auction mode, the quote-driven mode and other additional trading modes. Many other non-trading modes can be supported too.

Versatile order types can be applied: market, limit, stop/stop loss, market or limit, iceberg. Moreover, customized order types can be supported by setting proper parameters such as running reference data, trading hour, and order validity span etc.

As one of the core development strategies of SSE, the technical development strategy of SSE aims at establishing world class stock trading platforms and related IT service providing systems, which can provide a solid guarantee of secure, scientific, flexible, sustainable, and full-aspect trading-related IT services and thus meet the requirements of the market development. Towards the target, we will focus on service enhancement and technical innovation and make progress in the following aspects: further improve IT infrastructure, broaden and deepen the application of data warehouse, establish the 3-center-two-city layout, realize the multi-point-standby redundant architecture, research on a lighter, simpler and more efficient architecture. Moreover, we hope to play a role in promoting technical development of China’s stock market as a whole while driving the development of SSE’s technology forward.

Today, together with our partners, SSE has made great effort in providing quality service for global investors in the cross-border business such as QFII and cross-border ETFs. In the future, SSE will provide more and better service for investors who are willing to witness and share the development of China’s capital market.