Abstract
Equity trading system got a new look in many countries. The change over was effected so that the output of trading activities may be enhanced, thereby improving the trading capacity of the stock exchanges around the globe.
Equity trading system in Europe:
Lately, it has been observed that trading systems have undergone several changes. The trading system in Europe has also witnessed marked changes. The four (major) stock exchanges in Europe, namely, the London Stock Exchange, Swiss Stock Exchange, Amsterdam Stock Exchange and the Deutsche Borse AG were introduced during the periods 1994 to 1997. Changes in the operating environment were registered due to the introduction of the ISD or Investment Services Directive. However, it was observed that the above-mentioned stock exchanges differed from each other in several respect. There were similarities too.
Trading costs in equity trading system:
The portfolio managers are usually entrusted with the job of managing investment portfolios and their trading costs. The effectiveness with, which the portfolio managers work is highlighted in the success of trade. It has been observed that there exists a close relation between volatility, market capitalization and trading costs.
Oslo Stock Exchange or OSE:
The Oslo Stock Exchange launched its new equity trading system keeping in mind certain aspects of trading. The main intention of introducing the equity trading system of the Oslo stock exchange was:
Achievement of market liquidity
Maintaining fair trade
Increasing the trading volume.
