PSX poised to launch new trading system

New system is expected to boost stock market, attract investment

KARACHI:

The Pakistan Stock Exchange (PSX) is set to launch a new technologically advanced trading system on Monday, May 15, 2023, according to a notification released by PSX Company Secretary Dr Fakhara Rizwan on Thursday. The new system is expected to improve security features to better safeguard investors’ data and resolve complaints about data leakages and theft.

The first version of the new trading and surveillance platform, called Designated Time Schedule (DTS), was launched one-and-a-half years ago in October 2021 but was quickly replaced by the old trading platform (KATS/Karachi Automated Trading System) due to hardware and software mismatch. Since then, PSX has been working to improve the infrastructure, hardware, and software to successfully launch the new system this time around.

The new trading system, which was purchased from the Shenzhen Stock Exchange (SZSE) for $2.85 million, has a built-in surveillance system capable of preventing and detecting data leakages and theft attempts. It can also conclude trading sessions (the full-session calculations and compilation of trading data at the end of the session) in just 30 seconds, compared to 30 minutes required with the current KATS/Karachi Automated Trading System.

The new system will now fully replace KATS – a system that has remained in operations since 1997. While PSX kept updating the older system, it has now become outdated and requires replacement. PSX’s former chairman Sulaiman S Mehdi had previously stated that the new system would connect PSX with three Chinese international stock markets, including the SZSE, Shanghai, and Hong Kong exchanges.

“The linkage will allow cross-listing of companies and attract foreign investment in each other’s stocks,” hoped Mehdi.

In Jan 2017, a Chinese consortium, which included the Shanghai Stock Exchange and Shenzhen Stock Exchange, acquired a 40% stake in PSX at Rs28 per share.

PSX had shortlisted two global stock markets to buy the new trading and surveillance system, including the London Stock Exchange. However, the SZSE was selected for the purchase due to its competitive pricing and advanced features. The new system is expected to further boost stock market and attract foreign investment.

Published in The Express Tribune, May 12^th, 2023.

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