The Pakistan Stock Exchange (PSX) is preparing to replace its outdated trading system with a new one, following the failed launch of the previous system in 2021. The PSX aims to enhance the progress of the capital market in Pakistan with the introduction of the new trading system (NTS).
This article explores the efforts made by the PSX to ensure a successful launch, including mock sessions and collaborations with industry representatives. It also reflects on the previous launch failure and the subsequent decision to revert to the old system.
PSX's Plan to Launch New Trading System for Capital Market Advancement
The Pakistan Stock Exchange (PSX) is gearing up to revolutionize its trading operations with the introduction of a new trading system (NTS), replacing the outdated Karachi Automated Trading System (KATS). After experiencing setbacks in the previous attempt to launch the NTS, the PSX is now determined to ensure a successful implementation for the progress of the capital market in Pakistan.
In February, the Securities and Exchange Commission of Pakistan (SECP) Chairman, Akif Saeed, held a meeting with representatives of the brokerage industry to discuss the re-launch of the NTS. During the meeting, brokerage houses shared their experiences, challenges, and feedback on the mock tests conducted by the PSX. The main focus was on testing the functionalities and speed of the Jade Trading Terminal (JTT) and other ancillary systems.
To ensure a seamless transition, the PSX has been diligently conducting mock sessions of the new trading system over the past few months. In March and April, three market-wide mock sessions were carried out in collaboration with the Pakistan Stock Brokers Association (PSBA) and TRE Certificate Holders/Securities Brokers (TRECHs). These sessions served as crucial testing grounds, and fortunately, no issues were reported.
With the successful completion of the mock sessions, the PSX has set a deadline of May 15 to go live with the new trading system. This indicates the PSX's commitment to timely implementation and underscores the significance of the NTS for the capital market's development.
Reflecting on the previous launch fiasco in October 2021, the PSX had initially introduced the NTS, which was procured from the Shenzhen Stock Exchange (SZSE).
The PSX had praised the new system as state-of-the-art, robust, and advanced, capable of accommodating new products and enhancements. However, the launch encountered challenges due to issues with the Jade Trading Terminal (JTT), the front-end Order Management System (OMS).
As a result, the PSX swiftly decided to revert to the reliable KATS, expressing optimism that the NTS would be reintroduced after resolving the front-end system issues. Unfortunately, the implementation of the new system was put on hold indefinitely.
In light of the past experience, the PSX has learned valuable lessons and taken a comprehensive approach to address the concerns before the upcoming launch of the NTS.
By conducting extensive mock sessions, collaborating with industry stakeholders, and prioritizing successful testing, the PSX aims to ensure a smooth transition to the new trading system.
The launch of the new trading system by the PSX holds immense significance for the capital market in Pakistan. It is expected to enhance trading efficiency, improve surveillance mechanisms, and provide a solid foundation for the introduction of new products and features.
The PSX's dedication to advancing the capital market underscores its commitment to fostering a robust and progressive investment environment.
the PSX's upcoming launch of the new trading system marks a significant milestone in the evolution of the capital market in Pakistan. With the lessons learned from the previous setback, the PSX is determined to overcome challenges and successfully implementation.
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