KARACHI, PAKISTAN: Pakistan Stock Exchange (PSX) had implemented the new trading system (NTS), which was procured from the Shenzhen Stock Exchange (SZSE), China, and went live on Monday, October 25, 2021.
Given several glitches, PSX, in consultation with brokers and regulator, is reverting to the previous system (KATS) as a short term measure to provide uninterrupted trading, PSX said in a statement.
Analysts believe PSX management won in projecting false impression that it was not their issue but issue was with local vendor (catalyst). This shall not safe their skin for causing losses to local and foreign investors.
“Ideally products of local vendor or Chinese vendor were supposed to be checked in all respects, was a prime responsibility of PSX management before the launch of new trading system, but senior management didnot give two hoots and completely ignored all issues calling these immaterial or cosmetic and posed that PSX is completely ready”.
“They blamed everyone from Chinese vendor to local vendor except themselves”.
“Checking the product of local or foreign vendors, was a prime responsibility of PSX management as they selected those vendors and not IMF or World Bank or anyone else.”
The failure of management to check products compatibility of all vendors caused reputation damage to Pakistan and that is also near reclassification of MCSI index from emerging markets to frontier markets in November 2021.
“Participants want answer to many questions, and demand independent enquiry by the regulator or forensic experts to fix responsibility and identify individuals who gave ‘Go Live approval’ without properly checking of coordination and compatibility of all systems”.
“One of the main questions, which remains unanswered, is on whose behest the management of PSX launched new trading system in haste, without proper testing and preparedness at their own side?”
According to PSX, the Chinese system is a state-of-the-art, robust, advanced trading and surveillance system having readiness for new products and additions.
Some material issues have been encountered in the Jade Trading Terminal (JTT), which is the front-end Order Management System (OMS) developed by a local vendor upon brokers’ demand.
Implementation of such a complex new system is a monumental task to ensure that there is no interruption of service to all market participants. It is pertinent to mention that 18 mock sessions were held before go-live. The live environment, however, presents its own unique set of challenges.