Qudsia Bano

The Pakistan Stock Exchange (PSX) recently unveiled its cutting-edge trading and surveillance system, offering a secure and highly advanced trading experience. With a proven track record of 20 years of uninterrupted operation at the Shenzhen Stock Exchange (SZSE), the new system boasts exceptional performance, scalability, and low latency. It operates on top-of-the-line servers, enabling faster processing speeds and trade executions, thereby increasing trading volumes.

Farrukh H. Khan, Chief Executive Officer of the Pakistan Stock Exchange (PSX), told WealthPK that the NTS demonstrated remarkable stability exceeding expectations. Furthermore, the PSX has acquired the ability to introduce new products and offerings in collaboration with its stakeholders, enabling future growth and innovation.

According to the official report available to WealthPK, the system can process 2,000 orders per second or 4 million orders per day on current servers and the capacity can be enhanced 100 times by simply adding more servers. The order processing latency is 2 milliseconds in active-active DR configuration. Moreover, the system has the constant availability with automatic failover completed within 10 seconds and a local disaster recovery switching time of less than 10 minutes.

According to Farrukh H. Khan, the new surveillance system is a state-of-the-art robust surveillance system that contains 86 real-time alerts and 105 reports with a processing speed of 100,000 trades per second. It is a big-data-based system that integrates, processes, and analyses massive amounts of data. This new system has efficient real-time precautionary monitoring function that enables automated early warning and detection, visualized on-site analysis, and digital process flow.

The scientific monitoring indicator system incorporated in the surveillance system has 130 synthetic alerts and five sets of intelligent analysis indicators, enabling high-frequency time series matching, trade replay, multi-dimensional analysis, front-running identification, and market-manipulating intelligent screening.

Zahid Latif Khan, Vice Chairman of the Pakistan Stock Brokers Association (PSBA), told WealthPK that the new trading system detects and prevents data leakage, improves reliability and scalability, and reduces long-drawn-out trading operations. Zahid said the PSX's relentless efforts to bring the NTS system to life will not only boost investor confidence but also enhance the quality of trading and accelerate information flow.

Talking to WealthPK, Engr. M. Liaquat Ali Khan, Chief Executive Officer of Spinzer Equities, attributed the successful launch of the system to the collaborative efforts of the PSX staff, brokers, investors, and regulatory bodies, with special appreciation extended to the SZSE for their cooperation.

“The new trading and surveillance system promises ease of use, enhanced business management functions, and improved trading continuity, thus propelling the PSX towards greater efficiency and outreach in the market. This development has garnered praise from the stakeholders, as it facilitates various product offerings, including equities, bonds, futures contracts, and other derivatives,” he said.

Liaquat suggested that the system should display critical information, including data, financial announcements, historical trends, company updates, and purchase and sale windows. By implementing this advanced system, the PSX aims to boost investor confidence, attract more participants, and align with international best practices in stock market regulation, he said.

He further said the new system had brought potential benefits such as deterring fraudulent activities and market manipulation through increased transparency and real-time data visibility. Furthermore, by aligning with the international best practices, the PSX enhances its reputation globally, attracting global investors and facilitating cross-border investments. However, challenges may arise during implementation, requiring rigorous testing, monitoring, and cybersecurity measures to ensure the system's stability and reliability, he added.

Credit: Independent News Pakistan-WealthPk