The stock exchange as a monitoring body
Regulating and monitoring stock market trading is one of the vital roles played by the stock exchange. By setting rules and monitoring trade on an ongoing basis, the stock exchange ensures everything runs in accordance with statutory and regulatory provisions. One thing it does is schedule trading days in its trading calendar, which it then publishes in an appropriate manner. It also makes sure that trading complies with the price-time priority principle. Additionally, the stock exchange is responsible for setting out instructions that are automatically applicable following a transaction, including the estimated settlement date and settlement amount.
As we can see, the stock exchange is responsible for a wide range of functions in relation to the market. It is not only a trading platform for those buying and selling securities, it is also there to ensure trading between investors and companies runs smoothly. This means it is crucial to the overall economy of a country.