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NTS glitch paralyzes bourse

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October 27, 2021 (MLN): The recently launched trading system at Pakistan Stock Exchange (PSX) is facing backlash from market participants since they are continuously suffering from technical bugs while consummating transactions.

To recall, the New Trading System had gone live on October 25, 2021, in order to integrate local bourse with regional and international stock markets while ensuring improved security features for better safeguarding investors’ data.

The new system was supposed to be capable enough to provide a user-friendly smooth trading experience along with a strong surveillance system to prevent data leakages and notify theft attempts.

However, the user experience of NTS is presenting a completely different story. Since its launch, so many complaints have been received by numerous members who are facing difficulties in consummating transactions.

Speaking to Mettis Global, Bilal Farooq Zardi, Secretary-General of Pakistan Stockbrokers Association said that NTS went live without fixing errors thereby investors around the globe had to suffer.

The management of PSX should immediately restore the old system- Karachi Automated Trading System (KATS) to avoid further credibility and financial loss, he added.  

He also said suggested that both the systems should be operated simultaneously given the ongoing glitches, till the new system gets bugs-free.

Meanwhile, the Stock Brokers Association, in its letter to the Chairman of the Securities and Exchange Commission of Pakistan expressed the concerns raised by market participants/members with regards to consummating transactions using recently introduced NTS.

“Investors all over the world use various trading platforms, including but not limited to, KATS, KITS, Online, and Internet-Based Trading which connects them directly with the Trading Engine, provided by the Exchange. This essentially means that any financial loss, incurred by the investors at large due to usage of NTS will not be the responsibility of the Securities Brokers/Market Participants,’’ the letter said.

The letter also underlined members of the Stock Broker association voluntarily provided all the required assistance to help the Exchange authorities to make this new system efficient, effective, and smooth to implement as a goodwill gesture. In this process, 18 mock sessions were conducted and errors, flaws & imperfections could not be addressed/removed in their entirety. This has compelled us to state that the Exchange is being damaged by unprofessional decision-making.

“NTS went live without fixing errors thereby investors around the globe had to suffer and public money has been put at stake. Volumes have been shrunk drastically due to hasty decisions based on the impractical system caused revenue loss not only to the Exchange, our members but also to the public at large. We fail to understand the logic behind its abrupt implementation during the rollover week,” it added.

It also highlighted that this NTS is missing important decision-making features which were available in the previous system KATS.

Earlier today PSX announced a temporary market halt for 2 hours i.e. from 12:00 noon to 2:00 pm, which had later extended for 30 minutes more as the technical issues were being identified in the JADE Trading Terminal (JTT) to protect the interest of the investors. 

When approached PSX's Spokesperson to get their stance on the current situation, he has not responded to Mettis' request for comment on the same at the time of writing.

Copyright Mettis Link News

Posted on: 2021-10-27T16:15:15+05:00

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