BSE's new technology to handle 1 lakh orders per second

To make trading more swift and fast, leading bourse BSE will soon introduce a new technology that will allow execution of as many as one lakh orders per second.

The technology for the trading platforms is being acquired from Germany's Deutsche Borse, a senior exchange official said.

"BSE is in the process of acquiring a technology from Deutsche Borse in Germany which will increase the speed of response of the BSE system by about 100 times.

(It wil increase) from around 10 milli seconds to 100 micro seconds," BSE Managing Director and CEO Ashishkumar Chauhan said here today.

Once the technology is implemented, it would increase BSE's trading capacity by about five times from present 20,000 orders per second to 1,00,000 orders per second.

"We will be able to take one lakh orders per second and a response time of 100 micro seconds. Now, it is around 10 milli seconds and 20,000 orders per second," Chauhan noted.

According to him, the technology is already being used by Deutsche Borse.

"It is a technology being given by Deutsche Boerse to BSE and the upfront costs are very low. The technology is currently under implementation. It is expected to come in four to six months," Chauhan said.

There would also be pilot project and beta testing before introducing the technology in real time.

Set up in 1875, BSE is the country's oldest bourse.

Chauhan said the exchange has created a value of $1.3 trillion of market capitalisation.