Online share-trading system to go live in two months
Nepal Stock Exchange Ltd (Nepse) has reaffirmed that fully-automated online trading of shares will commence within next two months.
Officials of the stock exchange company say that the much-awaited Nepse Online Trading System (NOTS) is at the final stage of testing and will be enforced in two months.
“The uncertainty about when the new system will come into operation has now ended. It will go live in a maximum of two months,” Chandra Singh Saud, CEO of the stock exchange company, said addressing a ceremony to launch mock test of the NOTS. He added that the first stage of user acceptance test (UAT) has already been completed.
"The mock test and the user acceptance test mean that the new system is almost ready to go live,” Saud added further.
The stock exchange company has started mock test of the new system, allowing investors to familiarize themselves with the new system for two months until the new system goes live. This is the new deadline that the stock exchange company has set to introduce NOTS. Previously, Nepse officials made several announcements to roll out the online trading system by replacing the existing trading system. However, the Nepse has been delaying implementation of the system, citing various factors including a tussle with Securities Board of Nepal (Sebon) over selection of the system developer.
The case over selection of the vendor was even taken to the court.
The Nepse had signed agreement with YCO Pvt Ltd, an information technology firm, for supply, delivery, installation and commissioning of the fully-automated online trading system in February after a court ruling came in favor of the vendor. The trading system developed by YCO Pvt Ltd will allow investors to place their orders online, while everything -- payment, clearing and settlement – can be carried out electronically.
According to Nepse officials, brokerage firms will have to ready infrastructure for the new system in the next two months. Brokerage firms have also said that they will be able to set up required infrastructures within two months for implementation of the new system.
“There are some issues related to the cost. However, two months' time is enough for us to be prepared for implementation of the new system,” said Priya Raj Regmi, the president of Stock Brokers Association of Nepal.
This new system will allow investors to place orders online, either through phone or computer, without requiring them to visit the brokerage office.
With the new online trading system, there will be new components of member portal system, surveillance system, and collateral system, among others.
Source: My Republica