PSX proposes rule changes to tackle technical glitches in trading system

June 18, 2025 (MLN): In a move aimed at strengthening operational resilience, the Pakistan Stock Exchange (PSX) has proposed amendments to its regulations that would formalise the process for suspending or shutting down trading due to technical faults in the trading system.

Under the proposed amendment to Regulation 8.3.3, the PSX may suspend or halt trading if the trading system becomes inoperative or inaccessible to at least 10% of Securities Brokers due to technical faults.

The update refines the current regulation by introducing a clear threshold and explicitly identifying system-level disruptions as a trigger for halting market operations.

According to PSX, since the launch of the NTS (New Trading System), brokers have had access to multiple front-end trading platforms. This diversification is expected to minimise disruption, as brokers can switch between platforms during technical issues.

However, the new rule is designed to provide a formal mechanism for action in the rare event of widespread technical failure.

The Exchange has opened a public consultation period and invited stakeholders to submit comments via email or mail. Respondents may also request confidentiality for their submissions.

Once finalised, the new rules will add clarity and transparency to market suspension protocols and further align the PSX with international best practices in trading continuity and disaster recovery.

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