NISM Series VII — Securities Operations & Risk Management

Welcome to NISM Series VII — Securities Operations & Risk Management. We will study Trade Lifecycle: From Client Order to Contract Note, work through an example, and practise using the course's learning material. Preparation support for NISM Series VII — Securities Operations & Risk Management. This is independent educational preparation; official certification is conducted by the relevant authority. Sign in and use the study header to open your authorised course. Select this published lesson. Start Course Tutor with Auto audio on: it teaches continuously, answers a typed question, then resumes. Stage 5 — Matching and execution. The exchange's order book matches orders on price-time priority: the best price gets priority, and among equal prices the earlier order executes first. A matched trade receives a unique trade number and is reported back to both brokers in real time. Scenario. Client Arjun places a limit order to buy 200 shares at ₹410. The best offer in the book is 150 shares at ₹409.50 (Order X, entered at 10:01) and 100 shares at ₹410 (Order Y, entered at 10:00). Another offer of 80 shares at ₹410 (Order Z) was entered at 10:03. Assume, for illustration only, brokerage of ₹20 per executed order and total other charges of ₹45. Figures are invented. Matching. 1. Best price first: 150 shares at ₹409.50 from Order X. 2. Remaining 50 shares at ₹410. Between Y (10:00) and Z (10:03), Y has time priority. So 50 shares from Y at ₹410. Trade value. 150 times 409.50 = 61,425.00 50 times 410.00 = 20,500.00 Total = 81,925.00 Check: 409.50 times 150: 400 times 150 = 60,000 and 9.50 times 150 = 1,425, total 61,425. 410 times 50 = 20,500. Sum 81,925. Confirmed. Amount payable. 81,925 + 20 + 45 = ₹81,990. (Here the two fills come from one order, so the illustrative per-order brokerage applies once.) Contract note. The note shows both fills separately with their trade numbers and times, the brokerage, each levy, and the net payable of ₹81,990. Controls illustrated. RMS checked that Arjun had at least ₹81,990 (plus any margin requirement) available; the exchange matched on price-time priority; the back office issued one contract note covering both trades. Which mistake would change the reasoning in this example? 1. Accepting orders before the UCC is uploaded. Every order must carry a valid UCC registered with the exchange. 2. Treating a stop-loss order as an immediate order. It stays inactive until the trigger price is touched. 3. Ignoring time priority at the same price. Ask Course Tutor: please explain this step from the example. 2. Remaining 50 shares at ₹410. Between Y (10:00) and Z (10:03), Y has time priority. Why does it follow? Add what you tried, so the explanation addresses your difficulty. Now try the source practice. A buy limit order at ₹100 meets two sell orders at ₹100, one entered at 11:05 and one at 11:02. Which executes first? Pause before the answer. The source answer is: The order entered at 11:02, because at equal price the earlier order has priority. Compare your reasoning as well as the result. If your response differs, return to the worked example and identify the step that needs correction. Explain the key idea in your own words, revisit any mistaken step, then continue to the next lesson. Use Stop to end Course Tutor when you finish.