PSX reverts to KATS as 'short-term measure'

KARACHI: After facing multiple technical issues in the new trading system, the Pakistan Stock Exchange (PSX) has decided to shift trading to the previous system called the Karachi Automated Trading System (KATS).

According to a PSX announcement, issued on Saturday night, “Pakistan Stock Exchange had implemented the new trading system (NTS), which was procured from the Shenzhen Stock Exchange (SZSE), China, and went live on Monday, October 25, 2021. The system is a state-of-the-art, robust, advanced trading & surveillance system having readiness for new products and additions.

“The SZSE NTS is working exactly as per specifications and is delivering in terms of its trading engine performance in a live environment. During the week, the average order processing latency was seen at about 1.74ms, the actual peak order speed after going-live was 387 orders per second and the total trades achieved were about 600,000 per trading day on the NTS. The designed capacity far outweighs the peak actual value after going-live.

“Some material issues have been encountered in the Jade Trading Terminal (JTT), which is the front-end Order Management System (OMS) developed by a local vendor upon brokers’ demand. It is important to note that most brokers also have other OMS’ and KITS terminals to trade on the NTS as well. Hence, during this week 1.98bn shares have traded on PSX’s NTS.

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“Implementation of such a complex new system is a monumental task to ensure that there is no interruption of service to all market participants. It is pertinent to mention that 18 mock sessions were held before go-live. The live environment, however, presents its own unique set of challenges.

“In order to address the concerns with JTT, PSX, in consultation with brokers and SECP, is reverting to the previous system (KATS) as a short-term measure to provide uninterrupted trading for all TREC-Holders.

“PSX IT team and the SZSE technical teams are working with local vendor to address the issues in JTT. PSX recognizes the commitment, devotion, selfless effort and support extended by the SZSE technical team. PSX may opt to adopt SZSE’s trading terminal for TREC-Holders and end users at switchover as a part of NTS. PSX will initiate and organize market-wide testing before go-live.

“Once the matters concerning the front-end system are fully resolved, we expect to implement the NTS in a few weeks.”

Copyright Business Recorder, 2021