PSBA seeks PSX inquiry

KARACHI: Pakistan Stock Brokers Association (PSBA) has asked Pakistan Stock Exchange (PSX) Chairperson Dr Shamshad Akhtar to investigate the pre-mature implementation of the New Trading System (NTS) by the management of PSX, which inflicted heavy losses on investors.

In a letter to the chairperson, PSBA said that the incident dug into the foundation of investment climate and shattered confidence and trust developed over years of rigorous efforts by the government, financial wizards and stock brokers.

The association believed that the incident could have been avoided if the management had arranged an equivalent front-end Trading Terminal before going live on a state-of-the art, robust, advanced trading and surveillance system bought from the Shenzhen Stock Exchange (SZSE).

PSBA asked Dr Akhtar to check whether domestic / international tenders were called or selection was based on prior business relationship and whether the approval of Board of Directors (BOD) was sought.

It also demanded to check the evaluation procedure undertaken by the management.

This is the same company which has developed KiTS, hence, management was and is well aware of its shortcomings.

PSBA asked for initiating an inquiry as to how the management evaluated the abilities and capabilities to deliver the job, particularly when they have un-ending files of complaints against this vendor from the time when KiTS was developed.

It also demanded the chairperson to initiate an inquiry if any undertaking was given by Catalyst to handle the entire workload of around 1,000 machines, as the PSBA sources had revealed that Catalyst JTT was not even capable of handling 500 machines when connected simultaneously.

It accused the management of false impression that this association approved this vendor. “We were never approached by the management in this matter,” PSBA categorically declared.