PSX signs agreement with SZSE for acquisition of Trading and Surveillance System

KARACHI: Pakistan Stock Exchange (PSX) has finally taken a decision to approve execution of a contract with Shenzhen Stock Exchange (SZSE) for the acquisition of a Trading and Surveillance Systems (TSS), to bring PSX at par with other international stock exchanges.

The decision was taken by its Board Meeting held on 26th September 2019. The formal signing ceremony took place in a grand and colorful event in Shenzhen, China, earlier this week.

The PSX delegation was headed by the Chairman PSX, Sulaiman S. Mehdi. The Chinese side was represented by the Chief Executive Officer of Shenzhen Stock Exchange, Wang Jianjun.

The Trading and Surveillance System offered by SZSE is state-of-the-art, robust system. The additional benefits of the SZSE Trading System would be built-in Risk management, Market access, Market data dissemination, Market control, Real-time trading system, Disaster Recovery & System operation, monitoring and management, Growth Enterprise Market (so far known as Small and Medium enterprise trading), Bonds/Term Finance Certificate trading, Single stock option trading, Index option trading and Real time fault-tolerant system.

A further additional interface is China Connect which can give PSX access to the other Exchanges that SZSE is connected to i.e. Shanghai and Hong Kong etc. This would open up the Asian market to PSX and Pakistan for business opportunities. Additionally, the improved data quality will compound PSX data vending potential and capability immensely.

The surveillance system consists of features, such as Real-time monitoring, Ex-post investigation, Trade replay, Data query and reporting, Case management, Surveillance task management, Security and audit, and Job Schedule system.

These features are world class stock market surveillance tools and PSX stakeholders of the Capital Market will be direct beneficiaries “In today’s fast changing technological world, a reliable, secure and efficient Trading system is a basic requirement for PSX.

Further, a robust and state-of-the art Surveillance System, is also an essential requisite as PSX is the only National Exchange and the front line Regulator,” said PSX Chairman Sulaiman Mehdi while speaking at a Media briefing session.

He further added, “We have received immense support and applause from the Capital Market stakeholders, from the brokerage industry as well as the listed corporates as they all stand to benefit from the efficient operations, new product possibilities and surveillance capabilities that this system will bring.” The PSX is confident on the quality of the system which is currently used by the Shenzhen Stock Exchange itself without any lapses.

SZSE is the world’s 3rd largest Exchange in terms of trading value which shows the robustness of the trading & surveillance system. SZSE has assured continuous technical support to PSX as a strategic partner post-installation of this system.

Both PSX and SZSE reaffirmed their commitment to technological cooperation which would be helpful in elevating the image and standing of PSX vis a vis other developed exchanges around the world.