Hardware failure halts trading in Nepse

KATHAMNDU, JAN 20 -

Trading in the Nepal Stock Exchange (Nepse) grounded to a halt on Thursday due to a hardware failure. The exchange had faced software malfunctioning a few days ago.

No transaction could take place for the entire day (12:00 pm to 3:00 pm)—for the first time in Nepse’s history. Trading at Nepse had never been halted for more than 15 minutes until the latest disturbance.

Transaction was rescheduled for 3:00 pm to 4:00 pm after the problem was solved. In a press release, Nepse apologised for the disturbance and said the problem was due to the malfunctioning of ‘Nick-Card’ in the transaction system server. “Immediately after the problem ensued, Nepse had informed us that it would be solved soon,” said Anjan Raj Poudyal, president of Nepal Stock Brokers’ Association. “But the repairing was completed only by 3:00 pm.” According to stockbrokers, as Nepse disseminated the information late, only the transaction of shares that were ordered in advance was possible. “Transaction lasted for half an hour,” said Poudyal.

Nepse had upgraded its hardware four months ago. After upgradtion, problems like sluggish operation had been solved, but the hardware failed all of a sudden on Thursday. “We are not clear about what should be done if similar problem surfaces in future,” said Poudyal. Over the rescheduled transaction period, the exchange witnessed a turnover of Rs 8.40 million through 347 transactions. The market index rose marginally to close 0.61 points high.

Groups representing commercial banks and insurance companies gained 0.81 and 0.64 points, respectively. Development banks, hydropower, finance companies and others shed 0.26, 1.31, 0.35 and 2.35 points, respectively. System failure in Nepse is not new. Frequent disturbances have been witnessed in the past due to problems in software. The exchange is preparing to replace software soon.

Source: Kantipur