Technical malfunction again lays bare IT inadequacy of DSE

A technical glitch that delayed the opening of the Dhaka Stock Exchange (DSE) by one and a half hours on Sunday exposed once again the weak IT infrastructure of the prime bourse.
Trading began at 11:30am and continued until 3:00pm, half an hour after the usual closing time, DSE officials said.
At the beginning of a work day, the IT system generates a session file, which acts as a temporary backbone of the session's data. Technical mismatch with any of the brokers' self-hosted order management system (OMS) might have been the reason for the disruption, said a DSE official, requesting anonymity.
The problem was fixed by DSE engineers with assistance from FlexTrade Systems, which manages the order management system (OMS) at the brokers' end, said the DSE in a statement.
"We apologize for the temporary inconvenience caused to investors and market participants," reads a statement issued by the Dhaka bourse.
The DSE has formed a three-member inquiry committee to gather further details of the technical problem. A probe report will have to be submitted within the next three days.
The market endured a plunge after a delayed opening. It had already been witnessing volatility for the past few trading days, having experienced the biggest annual decline in four years in 2024.
The prime index of the DSE went down by more than 34 points or 0.66 percent to 5,165 on Sunday. The market turnover remained almost flat over the previous session at around Tk 3 billion.
The Chittagong Stock Exchange (CSE) that opened as scheduled at 10am on Sunday saw its All Shares Price Index (CASPI) lose 92 points to 14,460.
This is not the first time the DSE faced such disruption. Owing to technical glitches, trading had been suspended or delayed many times in the past few years.
On October 24, 2022, trading at the Dhaka bourse remained halted for three hours for errors in the trading server.
That prompted the Bangladesh Securities and Exchange Commission (BSEC) to send the then DSE Chief Technology Officer Md Ziaul Karim on forced leave in November. He was terminated later on.
The post has remained vacant since then. DSE General Manager Md Tariqul Islam has been performing the duty of acting CTO.
On March 10 last year, a technical malfunction sent indices into disarray, leaving investors in the dark about the market trend. That heavily impacted the daily turnover on the day. The technical glitch wiped out 571 points or 98 per cent of the main index of the DSE at the beginning of the trading day. The operational error was addressed at the end of the trading.
The following day, the prime bourse carried out corrections.
Technological capacity questioned
The repetition of technical disruption and trading suspension in the past few years raised questions about the IT strength of the country's prime bourse.
Stockbrokers and investors expressed frustration over the matter.
"Technical issues might arise any time, but the frequent disruption is worrisome, eroding the image of the stock exchange as well as confidence of investors," said Akramul Alam, head of research at Royal Capital.
The DSE should look into the matter seriously, said Mr Alam.
Mohammad Ahsanul Islam, an investor, said repeated disruptions to trading on the premier bourse reflected its lack of competence.
DSE key positions remain vacant
Meanwhile, three key positions of the prime bourse -- managing director, chief operating officer and chief technology officer -- have been vacant for several months.
The managing director's post has been vacant since May last year, while the chief operating officer's position has been empty since January last year.
The prime bourse recently published advertisements for hiring in the key positions.

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