NEPSE conducts press meet to highlight the journey of online trading system; NOTS expanding the reach of Nepali capital market

Nepal stock exchange (NEPSE) conducted a press meet yesterday highlighting the journey of NEPSE online trading system (NOTS ) from the beginning till it's current position. The program was attended by CEO of Nepal clearing house (NCHL), Neelesh Man Singh Pradhan along with the representatives from YCO Nepal.

NEPSE has recently partnered with NCHL to establish a payment gateway system whereby the investors can directly pay for shares from their bank account. Similarly YCO is the software company that built the NOTS for NEPSE.

The journey to bring in the online trading system began from 2070 BS when NEPSE published notice for bids. Now, almost 6 years down the line NOTS is ready with a total cost valuation of Rs 19.81 crore. The hardware costed Rs 9.4 crore and the software costed Rs 10.76 crore individually. As informed by CEO Saud, the payment for software hasn't been finished yet.

With a lot of back and forth, tussles, parallel run, mock trading, UAT and court cases, the system finally went live from Kartik 20, 2075. Even after the launch, the journey hasn't been easy with a lot of backlashes.

Many times it was reported that the system couldn't handle the load and addressing that NEPSE stated that the system currently can handle more than 20,000 order matches per second. They added, "The issues were surely there but they weren't because of NOTS. NOTS so far has been functioning smoothly and up to the standard." In the same flow the presenter added, "The system got huge criticism due the issue with Upper Tamakoshi but in that case to the system wasn't at fault. The problem was caused due to human error as s/he was mistakenly inserted 50% instead of 2%."

Some of the characteristics of NOTS that distinguishes it from the traditional CTS are:

1. It can support 20,000+ order matches per second which was only 3 to 5 order matches per sec in CTS.
   It can support currency and derivative instruments too if they are introduced to the market in future.
   It can provide better liquidity through market makers' support.
   It is compatible to any browser.
2. Therefore currently NOTS is integrated with Banks, CDS and clearing, NEPSE website, NEPSE app, NCHL and 50 brokers. The brokers as well as clients can execute their orders simultaneously and the system has fully integrated risk management system.

During the presentation, the company informed that even the Nepali people residing abroad who have demat account and bank account here are executing orders. This has effectively expanded the market coverage of Nepali capital market as a lot of activities are coming from outside the Kathmandu valley too.