KARACHI: The much-hyped new trading system at the Pakistan Stock Exchange (PSX) collapsed just on the third day of its implementation, causing even further discomfort among the traders, who were already disappointed with the options and features of this new system.
Sani Mehmood Khan, former deputy managing director at the bourse, said that the new system was not error-free as was propagated.
“[The] PSX had assured the Securities and Exchange Commission of Pakistan (SECP) that the new trading system would be tested and errors would be removed before the implementation. But, the system developed a fault in the first week.”
The PSX notified at midday that the system had developed a technical fault and would be restored in two hours, i.e., by 1400 hours, but the system was not restored and the PSX again notified the traders that it could even take more time to restore.
Traders said there were many issues in the new trading system. “We are expecting even some more features in this one, but it is missing at least 40 features, which were there in the old system,” a dealer said.
The new platform is causing frequent order confirmation delays, as well as problems in viewing the outstanding positions. There’s a real possibility of double buying and selling. There are issues with the price summary, market summary and pre-opening bids.
An analyst said there was a limited number of investors in the market, and they worked on leverage and margin trading.
“This new system does not calculate margin trading limits, confirmation of transactions are delayed, and the reports are issued quite late.”
The PSX acquired the new system from the Shenzhen Stock Exchange (SZSE), a related party, for Rs461.26 million, according to its latest annual report.
It is supposed to be the “safest and most advanced” system with the “utmost reliability, superior performance and low latency”.
“We have been approached by our numerous members who are facing difficulties in consummating transactions in the recently introduced New Trading System (NTS) by the Pakistan Stock Exchange (PSX) on October 25, 2021,” the PSX brokers association noted.
“The new trading system went live without fixing errors; thereby, investors’ around the globe had to suffer and public money has been put at stake. The volumes 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,” the association noted.
A PSX official said the system was newly-installed and there were some problems in it, which would be addressed soon.
Sani Khan said that the brokers and traders were enraged and they were even discussing going to court against the new system.
“If someone goes to court against this new trading system, the PSX would not be able to defend because the system is not error-free.”