PSX launches surveillance system pilot project

F.P. Report

KARACHI: The Pakistan Stock Exchange (PSX) integrated and successfully completed the pilot run of the surveillance system in the last week of March 2020 in close coordination with the Security Exchange Commission of Pakistan (SECP).

In the exercise, the SZSE pilot version of surveillance software was successfully integrated with the existing trading system of PSX to further strengthen its market surveillance capabilities.

In November 2019, the PSE signed a contract with Shenzhen Stock Exchange (SZSE) for the acquisition of a trading & surveillance system to bring its technological and operational systems at par with other stock exchanges around the world. The new surveillance system pilot project has been completed with access provided to the surveillance department of PSX, which can now monitor trading on real-time basis.

PSX Managing Director Farrukh Khan, in a statement, said, “This system is the elementary or pilot version of the main surveillance software of Shenzhen Stock Exchange (SZSE), which will be fully integrated with the new trading system once it is implemented by the PSX in the next phase, expected to be completed by January, 2021.

“The successful pilot of the surveillance system is the stepping stone towards the fulfillment of our ambition of having the best in class trading and surveillance system for PSX. This is the lead system which sets the basis for initiation of the more complex surveillance system at the PSX in the months to come”.

He added,”The trading and surveillance system provides for a solid, robust and contemporary trading platform for the benefit of all stakeholders and investors of the PSX.”

At present, the new surveillance system has been integrated with the existing KATS (Karachi Automated Trading System) on real time basis.

The production version of the surveillance system will be a state of the art system which will consist 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 are essential features of surveillance systems operational in the major stock exchanges of the world and shall be at PSX, as well, which will benefit all the stakeholders of Pakistan Stock Exchange.

A robust surveillance system is a prerequisite for a fair and transparent securities markets.

In a review meeting on Wednesday, the PSX BOD (board of directors) members and SECP recorded their appreciation for the teams of Information Technology (IT) Department-PSX & Surveillance Department-PSX as well as for the technology partners at SZSE, who despite the lockdown in China and Pakistan, functioned remotely to complete the project on time. This is an example of focused and dedicated team work, without which the launch of pilot version of surveillance software could not have been possible.