Nepse plans upgradation
KATHMANDU, OCT 3:
Nepal Stock Exchange (Nepse) is all set to acquire new trading system to boost the capital market — that is going through hard times at present — confidence.
The new trading system will allow home based transactions that is investors can place buy and sell order in the trading system directly through the portal of their brokers on the system.
“It will definitely boost the trading as investing will be easier and less time consuming and most importantly Non Resident Nepalis (NRN) can also participate in trading,” pointed out an official at the Nepse that has short-listed Singapore Exchange, Bombay Stock Exchange and Korea Stock Exchange for developing the software.
“However, final decision is yet to be taken as the contract will be handed to the party that offers the software at the best price and features at the soonest period,” the official added.
The secondary market officials have been doing rounds of Korea, Singapore and India since some time to negotiate.
Moreover, the new system will have stronger surveillance system that the current system some what lacks. “The improved software will have inbuilt mechanism to detect any circular and insider trading,” informed the official.
The current system failed in detecting any wrong doings in real time so that many crafty players and brokers can get away with taking advantage of the loopholes in the system.
Nepse wants the final software to be able to flag and even stop the transaction mid-way, if something seems to be not right.
Nepse that had started the operation on 1994 used open-out-cry system for trading until August 2007. After August 24, 2007, Nepse moved to screen-based trading by setting up of Wide Area Network (WAN) that enabled the brokers to be connected with Nepse’s server from their offices.
According to a study conducted by Securities Research Centre and Services (SRCS), the transaction in Nepse has risen by three folds after the automation.
“The transaction amount before the automation used to be at around Rs 30 million on an average per day but after automation, it has increased by over three-fold to Rs 100 million,” said the research report.
Nepse officials are hopeful that the new trading system will work similar wonders to present dismal situation of the capital market.
Nepse has been preparing for upgrading its trading system to make it more contemporary and advanced since some time. It has already undertaken gap analysis regarding the trading and settlement software to recognise the problems existing in the current trading system. The existing trading system is not capable of handling online trading and is not compatible with the Central Depository System (CDS) that is in process of being started.
Source: THT
Nepal Stock Exchange (Nepse) is all set to acquire new trading system to boost the capital market — that is going through hard times at present — confidence.
The new trading system will allow home based transactions that is investors can place buy and sell order in the trading system directly through the portal of their brokers on the system.
“It will definitely boost the trading as investing will be easier and less time consuming and most importantly Non Resident Nepalis (NRN) can also participate in trading,” pointed out an official at the Nepse that has short-listed Singapore Exchange, Bombay Stock Exchange and Korea Stock Exchange for developing the software.
“However, final decision is yet to be taken as the contract will be handed to the party that offers the software at the best price and features at the soonest period,” the official added.
The secondary market officials have been doing rounds of Korea, Singapore and India since some time to negotiate.
Moreover, the new system will have stronger surveillance system that the current system some what lacks. “The improved software will have inbuilt mechanism to detect any circular and insider trading,” informed the official.
The current system failed in detecting any wrong doings in real time so that many crafty players and brokers can get away with taking advantage of the loopholes in the system.
Nepse wants the final software to be able to flag and even stop the transaction mid-way, if something seems to be not right.
Nepse that had started the operation on 1994 used open-out-cry system for trading until August 2007. After August 24, 2007, Nepse moved to screen-based trading by setting up of Wide Area Network (WAN) that enabled the brokers to be connected with Nepse’s server from their offices.
According to a study conducted by Securities Research Centre and Services (SRCS), the transaction in Nepse has risen by three folds after the automation.
“The transaction amount before the automation used to be at around Rs 30 million on an average per day but after automation, it has increased by over three-fold to Rs 100 million,” said the research report.
Nepse officials are hopeful that the new trading system will work similar wonders to present dismal situation of the capital market.
Nepse has been preparing for upgrading its trading system to make it more contemporary and advanced since some time. It has already undertaken gap analysis regarding the trading and settlement software to recognise the problems existing in the current trading system. The existing trading system is not capable of handling online trading and is not compatible with the Central Depository System (CDS) that is in process of being started.
Source: THT
