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Technical glitch disrupts DSE trading, frustrating investors

Securities regulator forms body to conduct probe

FE REPORT | October 25, 2022 00:00:00

A technical glitch disrupted trading on the Dhaka Stock Exchange (DSE) on Monday, limiting activities to only 1:43 hours instead of regular 4:20 hours.

Trading at the DSE usually takes place between 9:30am and 1:50pm. But the trading halted at 10:58am due to technical faults that erupted on the DSE trading engine.

After the problem was solved, the prime bourses resumed trading at 2:10am and continued until 2:30pm.

During the time, DSEX, the prime index of the DSE, went down by 36.35 points or 0.57 per cent to a two-month low at 6,308 points. The market turnover stood at Tk 3.34 billion, reduced by 58 per cent from the previous day.

The issues that arose in the trading software engine were resolved by the IT team of the prime bourse and the foreign vendor firm NASDAQ, said DSE Acting Managing Director M Shaifur Rahman Mazumdar.

The DSE in a statement also expressed regrets for the interruption in trading software.

Meanwhile, Bangladesh Securities and Exchange Commission (BSEC) formed a five-member body to look into the technical problem.

The committee led by a director of BSEC, Abul Hasan will submit a report within 30 working days.

"The BSEC body will probe the reasons and negligence, if any, behind Monday's technical glitch," BSEC spokesperson Mohammad Rezaul Karim, told the FE.

This technical trouble was the first major one in recent times. Earlier, frequent technical glitches had halted trading on the DSE.

Technical disruptions on the DSE website hampered investors' trading activities for several days in August 2020.

Following repetitions of such incidents, the securities regulator earlier formed an expert panel on August 24, 2020 to find out the reasons.

The committee led by Prof. Dr. Md. Mustafizur Rahman, chairman of computer science and engineering department of Dhaka University (DU), made some recommendations to develop the trading platform.

Representatives of the government's ICT cell and ICT department and the securities regulator were included in the panel.

Analysts say that at a time when the market has been bleeding for the past few months, such problems send a negative massage to potential investors.

The stock investors and brokerages were angry to see technical problems again and again.

DSE launched the new trading platform on December 11 last year to get rid of repeated technical issues, particularly on occasions of some debut stocks with huge trade volumes amounting to Tk 350 million.

NASDAQ OMX, the world's largest exchange company based in the US, provided the main part-matching engine-while FlexTrade Systems provided the order management system at the brokers' end.

The trading engine TESA and trading terminal MSA Plus were replaced by FlexTrade Systems developed by NASDAQ OMX.

Meanwhile, trading on the Chittagong Stock Exchange (CSE) took place as usual and All Share Price Index - CASPI - lost over 86 points to 18,633 and the Selective Categories Index - CSCX lost nearly 52 points to 11,167.

Of the issues traded, 58 declined, 31 advanced and 113 remained unchanged.

The port city's bourse traded 2.10 million shares and mutual fund units with turnover value of Tk 105 million.

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