PSX removes restriction to modify unfilled orders in open session

December 08, 2022 (MLN): The Pakistan Stock Exchange (PSX) has removed the restriction to modify and/or cancel unfilled orders in Open Session by amending PSX regulation 8.15.7, the notification issued by the local bourse unveiled today.

Such removal of restriction will allow securities brokers to modify or cancel unfilled orders from the commencement of regular trading activity immediately after the completion of the order matching and confirmation period.

PSX also amended regulation 4.25 in order to empower the stock exchange to conduct verification, review, or inspection of a Securities Broker, to ensure its compliance with the requirements of PSX Regulation

4.25.1 or require a Securities Broker to submit an audit report on compliance with the requirements of the aforesaid Regulation in such manner as specified by PSX.

Furthermore, from the information security point of view, PSX Regulation 4.25.1(f) has been inserted which requires the Securities Brokers to implement a multifactor authentication mechanism such as one-time password, PIN, soft tokens, etc. to use Exchange's applications, which process or store sensitive data.

PSX has also inserted “Market Misconduct Regulations" to empower the stock exchange to detect and prevent market misconduct such as insider trading, false trading, market rigging, and market manipulation, to ensure an orderly and fair market.

Furthermore, under this Chapter, PSX can also enquire and obtain information, records, and documents to determine whether any market misconduct has occurred. In case of any adverse findings, PSX shall take consequential actions in accordance with regulations.

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