Securities and Exchange Commission of Pakistan (SECP) has decided launch an inquiry into the suspension of new trading system of the Pakistan Stock Exchange (PSX).
PSX has stated that its IT staff is continually working to fix Jade Trading Terminal’s (JTT’s) concerns and challenges with the new trading system.
PSX’s much-hyped new trading system collapsed on the third day of its introduction, prompting even more dissatisfaction among traders who were already unsatisfied with the system’s options and features.
Sani Mehmood Khan, the bourse’s former deputy managing director, claimed that the new technology was not error-free as claimed.
“The Securities and Exchange Commission of Pakistan (SECP) had been told by PSX that the new trading system would be thoroughly tested and any flaws would be corrected prior to its introduction. However, within the first week, the system started displaying flaw.”
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The PSX announced at midday that the system had acquired a technical malfunction and that it will be restored in two hours, but the system was not restored, and the PSX alerted traders that it could take even longer.
The new trading system, according to traders, has numerous flaws. “We were expecting even more features in this one,” a dealer remarked, “but it is missing at least 40 features that were present in the previous system.”
Order confirmation delays are common with the new platform, as are issues seeing outstanding positions. There’s a good chance you’ll buy and sell twice. The price overview, market summary, and pre-opening bids all have errors.
According to one analyst, the market had a small number of investors that focused on leverage and margin trading.
“This new system does not calculate margin trading limits, transactions are delayed in confirmation, and reports are delivered late.”
According to the PSX’s most recent annual report, the new system was purchased for Rs 461.26 million from the Shenzhen Stock Exchange (SZSE), a related party.
