KARACHI: Trading activity was completely halted at Pakistan Stock Exchange (PSX) for two and half hours on Wednesday due to technical issues in the trading system.
The new trading platform has been launched at PSX from Monday for efficiency in the trading processes; however, technical issues at the system are still erupting, forcing the management to suspend the trading to resolve the issues.
The PSX management announced temporary market suspension as there were some technical issues identified in the JADE Trading Terminal. Initially, the trading suspension was announced for two hours and later further extended for half hour.
“In order to conduct a detailed review of the issues and to protect the interests of the investors, the exchange has decided to suspend trading session for 2 hours, ie, from 12:00 noon to 2:00 pm. The market will resume after two hours with a pre-open session from 2:00 pm to 2:05 pm,” PSX announced at 11:58 am.
However, at 1:58 pm, PSX issued another notice for all brokers that suspension time has been further extended for half an hour in order to conclude the review of the issues.
Recently, PSX has launched a new trading system that has fully replace Karachi Automated Trading System (KATS), which was in operations since 1997. New system has been brought from Shenzhen Stock Exchange (SZSE) and PSX was holding mock trading sessions for the last 10 months to detect and remove technical issues in the new trading system.
Meanwhile, a delegation of Pakistan Stock Brokers Association (PSBA) met the PSX management and discussed issues related to new trading system. During the meeting, it was decided that stock market will open with new trading system on Thursday and if further issues identified, temporarily, the old trading system will be resumed, which will also take almost 24-hours.
The PSX management assured brokers that all possible efforts are being made to resolve the identified issues in the new system. Brokers said that they are not against the new system, but the new trading system must be launched after successful trail and free of faults. During the meeting, it was also considered that trading session will also be conducted on Saturday, if needed.
Sources said that a team of the Securities & Exchange Commission of Pakistan (SECP) is also likely to visit PSX to review the new trading system as PSBA has approached the regulator.
PSBA in a letter to the SECP said that members are facing difficulties in consummating transactions in the recently introduced New Trading System (NTS). The brokers’ representative body claimed that NTS went live without fixing errors. “Volumes have been shrunk drastically due to hasty decisions based on the impractical system causing revenue loss not only to the exchange, but our members but and the public at large,” PSBA said.
According to PSBA, the new system is missing important decision-making features which were available in the previous system - KATS.
The new trading system is a built-in surveillance system and capable of preventing and detecting data leakages and any theft.
Copyright Business Recorder, 2021
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