Broker companies to launch independent TMS for stock trading from today

KATHMANDU: Starting today, broker companies in Nepal will operate their own Trading Management System (TMS) for the buying and selling of shares and other securities, marking a significant shift in the country’s stock market operations. Secured Securities is the first to roll out its TMS, with operations officially beginning from Sunday.

“We are formally launching the new TMS this Sunday, and from now on, all our clients must use it for their transactions,” stated Santosh Mainali, Chairman of Secured Securities.

Until now, the new TMS had been tested with a limited number of clients, but according to Mainali, over 1,052 clients have already gained access to the system as of Wednesday. Other broker companies are expected to follow suit once the TMS proves efficient and user-friendly. “As the number of users grows and transactions become smoother through our system, other brokers will begin implementing their own TMS,” added Mainali.

The broker companies have acquired this new TMS from DGHub, a company that provides the TMS developed by Sri Lanka’s IronOne Technology. Around three dozen broker companies in Nepal have already agreed to purchase the system from DGHub.

Globally, it is common for broker companies to manage their own trading systems, but in Nepal, the Nepal Stock Exchange (NEPSE) had been temporarily providing the TMS to brokers. However, with the implementation of independent systems, NEPSE officials are optimistic about enhanced service delivery. “Now that broker companies are adopting their own TMS, we expect competition in modern technology and better services for clients,” said NEPSE spokesperson Murahari Parajuli.

Presently, broker companies are paying NEPSE NPR 25,000 per month for using its TMS. The new TMS will reduce this cost, bringing the monthly fee down to an average of NPR 15,000. This will not only help brokers financially but also allow them to develop and upgrade their TMS as per their requirements.

New TMS Features

One of the key features of the new TMS is its accessibility through mobile apps, a function previously unavailable. The new system will be available in three formats—mobile app, desktop, and web—allowing investors to trade shares easily from any device. “Now, with the mobile app, users can buy and sell shares conveniently,” said Mainali, adding that instructional videos will be released to guide clients in using the new system.

Clients will continue to use the TMS without any extra fees, just as with the previous system. However, the new TMS offers several improvements over the old one. For instance, clients can now see the exact details of their loaded collateral and the remaining balance after making a purchase in real-time. The system also allows for real-time transaction reports and better management of pending payments, a feature investors have been demanding for a long time.

Additionally, the new TMS will enable clients to purchase shares from the proceeds of a sale instantly—something the previous system lacked. Previously, clients had to call their broker to convert their sold shares into collateral for new purchases, but the new system automates this process.

Furthermore, users will be able to perform technical analysis of various companies using tools available in the new TMS. “We are providing users with analysis tools within the system, so they won’t need to rely on external apps or websites for chart views,” Mainali explained.

If any issues arise with the TMS, broker companies will be able to address them quickly, and as new tools and features for trading develop, they can integrate them into the system, offering continuous upgrades.

The new TMS will also include backup records of transactions, allowing investors to see their entire trading history in one place. The current system only shows the day’s transactions, making it difficult for investors to keep track of their cumulative trading activities.