Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) have jointly conducted a successful mock-trading session here on Saturday. The information technology (IT) experts of the exchanges said the operational capacity and system topology were measured and subsequently found satisfactory. The successful completion of mock-trading session has further strengthened the merger scheme of two bourses. Now, the ISE and LSE both were technologically ready for merger, experts added.
Meanwhile, the ISE Chairman Abdul Waheed Jan told this correspondent the board meeting would be held on March 16 to give formal approval to the merger of ISE and LSE. Both the exchanges had already agreed on setting up of a new company to promote integration of stock exchanges in the country.
When contacted, the Lahore Stock Exchange (LSE) Manager MIS Amir Raza Khan said that more than 40 to 50 ISE brokers/traders and over 150 brokers from LSE participated in the mock-live trading session, which appeared to be successful. The test session was conducted to figure out the operational capacity of joint online trading between the brokers and traders of LSE and ISE. The session was carried out from 11:00 pm to 12:00 pm.
He said technically, error-free trading was carried out among the broker community of Lahore and Islamabad. Amir Raza Khan pointed out that the software had been prepared by the IT experts of the LSE, which had direct online connectivity with the newest bourse of the country. The online connectivity had been done through Internet and a Virtual Private Network (VPN) had been used for proper implementation of the system.
He added the investors of both the cities would now have equal opportunity to participate in buying and selling activity. Talking about the speed of the system, Amir stated the system had the capacity to handle 3 to 4 times more load or volumes reflecting accuracy as well as speedy processing of the joint trading mechanism. He said the investors and traders of Lahore and Islamabad could simultaneously trade without any distinction whether the person was trading from federal capital or provincial capital.
ISE Chairman Abdul Waheed Jan said testing of the system was a part of merger plan between the two exchanges. It would enable both the bourses to operate under a single trading platform. The single trading place would not only increase volumes, but would also attract investment in the stock exchanges. The Central Depository Company (CDC) and National Clearing System would remain the same, whereas only joint trading capacity of LSE and ISE was successfully tested. The trading software of both the exchanges was the same and the online linkage had shown extraordinary results, he added.
It may be noted that the LSE had already given approval of the merger, while the ISE would convene the board meeting on March 16 in this regard. Both the exchanges had been engaged in submitting progress reports to the Securities and Exchange Commission of Pakistan (SECP) and a detailed report would be submitted to the commission by March 31, 2005.
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