1、September, 2001,Head of IT at Daishin Securities Co.,Ltd Executive Director Moon Hong Jip,Status of Online stock market in Korea / Daishin CYBOS 2002,Outline of the Korean stock market (in the online trading aspect),Status of online trading in Korea I , II,The number of online accounts in Korea,Head

2、line of Korea online stock market in Aug., 2001,Day-trading in Korea,Trend of Major statistics Online Trading,Yearly transition of online accounts and liquid accounts Monthly transition of online accounts and liquid accounts Demographics,Status of Day-trading in world major stock market General unde

3、rstanding vs. actual case study results of Day Trading in the Korean Market,Outline of Korea stock market,Survey on online customer satisfaction,Outline of survey Analysis of top 10 securities companies,1,Category 1997.12 2000.12 2001.5 Unit,1. . Trend of major statistics,Trading vol. 1,816,611 5,19

4、9,282 11,805,517 thousand shares Turnover 13,059,784 27,396,359 49,230,593 $ mil No of listed Co. 776 704 694 Market Cap 70,988,897 188,041,490 242,031,378 $ mil,Source: National Statistical Office,2. Online Trading,Stocks,Futures,Options,Total,%Change, YoY,98,11.4,10.9,0.1,22.5,99,495.3,186.0,3.1,6

5、84.3,2,941.3%,00,1,348.0,579.8,11.7,1,939.6,183.4%,Widespread online trading in 2000 from rapid growth in 1999 after introduction of online trading from amendment to Article 12 of Securities Transaction Law in April 1997,Online Securities turnover,Source: KSDA,(Unit: $bn),Outline of Korea stock mark

6、et (in the online trading aspect),2,Online trading Proportion,Total stock market,Online,% of online trading,(annualized),1999,1,947.46,495.25,25.4%,2000,2,411.2,1348.07,55.7%,Online market shares by major brokerage houses ,Online trading media ,Source: KSDA,Source: KSDA,Source: KSDA,3,Unit:$bn,Onlin

7、e Trading in Korea - I,Online Trading ,total(spot+futures+options),spot,(Unit: $bn),163,170,1999 - Turnover Total- $ 526 billion , Stock market- $ 381 billion 2001 - January turnover- $170 billion,Source: KSDA,4,Online Trading in Korea- II,FEB 2000:$59,910- the record high figures May 2000:$38,992,T

8、he average trading turnover per account,On-line trading ratio (stock market),( : ),( :%),May 1999: 12.0%, May 2000: 56.9%, May 2001: 67.4%,(Unit:$thousand),(Unit :%),Source: KSDA,5,The number of online accounts in Korea,1. Online accounts vs. liquid accounts,The end of May 2001, No of online account

9、s is 4,165,741 which takes up almost 50% out of liquid accounts,: ,2. Monthly transition of online account and liquid accounts,Source: KSDA,6,3. Demographics,By Gender,By Age,By Social status,Preference of investors on brokerage houses,Source: EnB Research (2001.5),7,Headline of Korea online stock m

10、arket in Aug., 2001,2001.11 - Development of the ECN market,Boom in introduction of integrated messenger service by securities companies,Real time customer consulting and employee enhanced productivity Daishin was first company to develop in-house messenger service in Mar. 2000/most active securitie

11、s community,Online Options trading - #1 in the world,With online options trading volume of 2.3 billion in July 2001, online market share of 55%, largest recorded figure in the world Results due to 1) Superiority of HTS in Korea 2) a fall in stock market 3) state of the art trading tools,Online day t

12、rading by institutional and foreign investors,According to KSDA from July 2001 online day trading study, 3,601 individuals traded more than 50,000 shrs online Individuals(98.8%) / institutions 12 / foreigners 15 /companies 15 accounts : Although the number of institutional and foreigner accounts is

13、small, due to the large trading size, its influence on the market is huge,8,Day Trading in Korea,Day trading in major markets,Source:FIBV,General understanding vs. actual case study results of Day Trading in the Korean Market,Hinder market stability as increased day Trading widens daily stock price

14、volatility,Day trading lessens stock market volatility as it enhances market liquidity. And is a positive influence as it is a “shock absorber for external shocks.,General recognition,Actual case study Results,Source: Dr. Jong Heng Lee, Graduate Financial Engineering Dept., Suwon Univ.,Review of rel

15、ation between day trading and stock price volatility,9,Survey of Korean online traders - I,1. The criteria for selection of online trading system A brokerage house at which online traders have accounts (38.4%) User friendliness (31.3%) Low transaction fees (13.1%), Recommendation of acquaintances (1

16、1.4%) 2. Korean online traders - I Half of them show symptoms of addiction to habitual stock trading 76.2% of them place 75100% of stock trading orders via HTS The reason for trading online: Swiftness and convenience (46.2%),10,3. Korean online traders - II 45.2% of them experienced financial losses

17、 due to difficulties stemming from system failure. Failed to connect or to place orders due to system failure (49.2%) Experienced a time-delay when placing orders (39.2%) 42.2% of them have used system trading function at least once. 4. What does and doesnt satisfy online traders Among the features

18、online trading system has to offer : Convenience chosen as a top pick 88.4% of respondents are satisfied. Features drew an overall 70% in satisfactory responses: Buy & Sell transaction & System speed Less satisfied features: Differentiated commissions (50.7% unsatisfactory responses) Investment cons

19、ulting service on real-time basis (52.1% unsatisfactory responses),Survey of Korean online traders - II,11,The survey on online customer satisfaction by Money Today,These results obtained from online survey results form 29,858 respondents among total of 37,635 Members of Korea Securities Information

20、 Technology. Survey distributed by D-Information form August 9 to 14 Result Daishin Securities ranked No.1 in 7 out of the 8 total criteria with the exception of the transaction fee criterion Criteria: 1) System speed, 2) System Stability , 3) Privacy protection , 4) Online consulting, 5) User frien

21、dliness, 6) Interactive with customers 7) Customer services , 8) Transaction fees Others : Ranked first in online trading market share and brand recognition, based on survey results,System Speed,System Stability,1. Outline of the survey,2. Diagram of top 10,Daishin 30%,Daishin 29%,12,Source: D-Infor

22、mation Co,.Ltd,Private privacy protection,Online consulting,Above chart based on survey results from top 10 securities houses by Money Today,Daishin 26%,User friendliness,Interactive with customers,Daishin 26%,Daishin 26%,Daishin 28%,Daishin 27%,13,Performance of online trading by Daishin I,II,Onlin

23、e trading M/S of Daishin,Success Factor of Daishin,Online Trading Historical Record,Performance of online trading by Daishin The ratio of online trading by Daishin,Status of Daishin Securities,14,Online trading market performance by Daishin,Performance of online trading by Daishin - I,(unit:$bn),49.

24、19,34.95,Comment : After reaching best performance of $49.19 bn in Jan. 2001, Korean market fell in conjunction with the US market drop,15,On-line trading ratio,Performance of online trading by Daishin - II,( %),After July 2000 Ratio of spot market: more than 80% Ratio of futures/options: about 90%,

25、16,Provides all DERIs research data to large web sites such as Yahoo,First mover in market,Perfection of trading system,All contents are made with HTML,Entry into market more quickly than rival companies,Secure customers earlycustomers attract other customers,Present standard of Korea online trading

26、,(Powerful user interface),De facto standard,Commission Cost of marketing,Performance,Why ?,The source of Daishins competitiveness is its own technology and several years know-how on system operation,Domain knowledge / technology,SUCCESS FACTOR,17,75 First to introduce securities computer system in

27、Korea95 Launching Infoway (Middleware), AS2(Client tool for Win95) 96.11 First to launch total account management system in Korea (one card trading/ WIN95 application),1997.4.1 Launching online trading service(VT100) 1997.10 Launching online trading service for Windows95 (First in the industry CYBOS

28、 95) 1998.10 Breaking US $ 1 billion monthly average turnover 1999.11. Breaking US $150 billion annually sum of the turnover Appointed as a leading online trading company by ING BARINGS (research institute in US) 1999. Total 22 awards received by various organizations and newspapers as a leading onl

29、ine trading company 2000 Total 33 awards received by various organizations and newspapers as a leading online trading company 2000. 9 2000. Korea Management Association: Internet Award 2000. 11 2000. New Media Award- Award for the best information 2000. 1- 12 Breaking $384billion turnover by online

30、trading 1Q 2001 1Q Appointed as the best securities company by STOCKPIA 2000. 1-7 17 Awards received as a leading online trading company 2001. 9 Breaking $384billion turnover by online trading(expectation),Online Trading of Daishin (Historical Record ),18,Features of CYBOS 2002 I , II,Introduction o

31、f total account system I , II,Problems with existing accounts First in industry to establish total account system: 1996.11,Construction status of Daishins IC system,Online Trading System architecture,Java program hacking risk,Daishins Security System,Architecture of total system N/W Architecture of

32、detailed system,Middleware - INFOWAY,Client Tool AS(Application Support)2,Outline of CYBOS2002,19,Total account management system,* One card system * Ease of transfer between different products * Real time asset valuation * Real time charts * Automatic ordering * Multi-accounts supporting system * R

33、eal time settlement report,Daishin CYBOS 2002,Multi-windows Event-driven Easy of use Real time User friendly,Feature of CYBOS2002 - I,20,Synthesis First to introduce total account system in Korea Enables to trade all products with one single total account,Swiftness -Many issues and/or multiple accou

34、nts with the same issue can be traded at once. -Providing complete automatic transaction notification without any inquiry.,Extension -Customers can customize windows and menu -Toolbar registration, connected information function, saving user-interface window,Stability -Operation management system an

35、d information system. -128bit encryption protection.,Convenience -Transfer or exchange between all separate accounts, funds, and banks. -Providing cyber bonds trading system.,Customer-oriented -Various and convenient windows for day trading -Providing most effective Question and Answer window. (#881

36、1),Variety -Providing various and stable connection lines. -Internet network, high speed ppp network and exclusive phone line network,CYBOS2002 Cyber Business Oriented Service - As good as branch office,Cybos-Plus Plug-in,Customized and future-oriented order system,Feature of CYBOS 2002- II,21,Addit

37、ional accounts,Main account,Customer,Introduction of total account system -II (First in the industry : November, 1996),total account,Futures /Options,MMF,RP,CP,Securities Savings,Additional set-ups,total account management system,What is total account 1) Total asset management service on individual

38、client basis using total account system 2) Integration of each customers deposits, trading media & information,Managing high-yield assets on real-time basis and exploring future financial products became available through unlimited transferring between main accounts and additional accounts,22,75 Fir

39、st to introduce securities computer system in Korea 80 First to launch On-line order system in securities industry 87 First to launch investment information service by means of ARS at in securities industry 90 First to start VAN service in securities industry (Diamond-VAN) 92 First to operate the 3r

40、d online system in securities company (Differed System) 96.11 First to operate total account management system in Korea (one card system/ WIN95 version) 95 Operating Infoway (Middleware), Development of AS2(Client tool for Win95) 97.4 On-line trading system 98.6 First to launch we-based trading syst

41、em among major securities firms 99.2 Operating general ledger transfer system, launching the CYBOS 2000 2000. 9. Launching the CYBOS 2002, the best Trading Tool 2001. 6. Launching the CYBOS Trader,Status of IC system establishment,23,Online trading system architecture,Back-up,router,Main Switch,rout

42、er,FEP,HOST,HOST,router,Hanaro,Thrunet,Daishin,router,router,CYBOS Server,router,CYBOS Server,F/W,F/W,F/W,Freezm,router,F/W,Branch office of seoul,router,Local branch office,router,router,CYBOS Server,router,router,Daily no. of simultaneously connected users : 50,000Maximum simultaneous connections

43、: 140,000,24,Java program hacking risk,Analyzed synopsis of Java trading program hacking trouble,Java Program,Source code,compile,decompile,cf) Decompile is relatively easy with JavaUtilization of source code.Hacking program created,Log-on to Other account,Other ID inquired & entered,Other Password

44、entered,Call,Error message return,Auto recall,Daishins countermeasures against Java-related securities problem,1) For Java program - Introduction of Source Guard , a code obfuscation tool (preventing mischievous incident such as above) 2) Requires to enter operation key before processing account-rel

45、ated operation operation key must be re-entered even after ID and password inputted 3) 128bit encryption of all data (refer to next page) 4) Offers account COOKIE encryption while processing operation,Log-on with own ID,Executing Hacking program,25, Client authentification - Blocking illegitimate ac

46、cess through an identifying procedure System Security - Built binal blockade system using firewall (F/W) / Protecting client information from hacking attempts & preventing intrusion to main systems. Data Security - Applying 128 Bit Encryption-vie-decryption module to critical keys in data communicat

47、ion between client computer and Daishins system. Applied only to major operational keys in consideration of system speed.,Customer,F/W,The Bourse,FEP,Primary blockade - F/W - Router,Secondary blockade - F/W - Router,DATA Encryption-vie-decryption process (applying128 BIT module),Daishins security sy

48、stem,26,MiddleWare - Infoway,1. Definition of Infoway (Information highway). Middle-ware, which is designed to move, control, and display data, exists between network and application in a distributed processing environment. 2. Purpose of development Before the introduction of the distributed process

49、ing environment, computing environments at all the securities firms were characterized by mainframe-centralized system with various applications developed and maintained. Even after the distributed processing environment became an alternative solution, it still had many barriers attached to itself.

50、For instance, data compatibility problem between different systems, reciprocal movements between data bases randomly located, deteriorating system performance due to a growth in clients pool, demands for expertise for languages in various platforms and networks were addressed to be coped with. Yet,

51、flexibility and innovative approaches are considered critical in dealing with system development, light-speed changing business environment and diversified clients needs such as inquiry for real-time price and investment information. Infoway, Koreas first middle-ware system developed by Daishin Secu

52、rities, was meant to overcome these restrictive environments.,27,3. Development time table 1) First period (1991 1995) : First in the industry to adopt Unix and Windows 3.1 2) Second period (1995 1996) : Adopt Unix and Windows95. 3) Third period (1997 2000) : First in the industry to adopt On-line t

53、rading. 4) Fourth period (2001 ) : Developing integration middle-ware. 4. Infoways function 1) Provides an accurate data transmission and integrative OLTP . 2) Offers a system unity. 3) Minimizes needs for application development through integrating applications. 4)Makes maintenance for programs eas

54、ier.,28,5. Characteristic of Infoway 1) Subject-Based Addressing Infoway users gain access to data on a subject-basis. This allows an architecture independence between information provider and consumer. As a result, application can not be affected even when information of certain subject is altered.

55、 2) Demand-Driven method - The most widely-adopted approach. - Standard model for client-server - Data flow controlled by utilizing transaction - Request created by client.,Request & Reply Model,29,3) Event-Driven method (Publish & Subscribe Model) - Computation executed by Event-driver. - Data broa

56、dcasting. - Client subscribing item wanted. - Event created by the server. - Supporting Multi-cast telecommunication.,Publish & Subscribe Model,30,- AS2 is Daishins own screen designing tool which enables faster development of objects for applications. The tool currently supports most of securities-

57、related screens and is completely integrated into CYBOS 2002 and Daishins field office system. - Significant cost reduction is expected in developing and maintaining operation systems since host server managers who design and implement computerized securities trading operation are directly involved in making end-users screen.,CYBOS 2002,AS2 Designing Tool,Daishin New Operation,AS2 Screen Files ( FTG ),Edit,Execute,Execute,Client Tool - AS(Application Support)2,31,Integration between W