DSE trading resumes after 1.5-hour delay following software glitch

Trading starts after 1.5-hour delay at 11:30am following repairs from a software glitch on Sunday

A technical glitch in the software used for share trading delayed the start of transactions at the Dhaka Stock Exchange, or DSE, on Sunday.

The market was scheduled to open at 10am, but complications arose, and trading only began after 11:30am following repairs.

During the first hour of trading, the DSEX index dropped by 11 points from the previous day.

Shares worth Tk 875.2 million changed hands during that time.

At the close of last week's trading on Thursday, the DSEX index was around 5,199 points, with a decrease of nearly 19 points. Shares worth nearly Tk 3.14 billion were traded.

Saiful Islam, director of brokerage house Brac EPL Stock Brokerage Limited, said that despite being fully prepared, their team could not access the server on Sunday morning. The DSE then notified them of the issue through an email.

"We received a letter long after 10am. Before that, our IT team had already started contacting DSE. We were informed that trading was suspended due to an unavoidable technical glitch and would resume once the issue was resolved," said Saiful.

After trading resumed, DSE spokesperson Shafiqur Rahman told bdnews24.com: "There was a technical issue. The IT team worked to resolve it, and trading has now begun. An explanation for the delay will be provided to investors."

A DSE official said the problem originated in the order management system of the FlexTrade software.

After demutualisation in December 2014, DSE launched an automated trading platform in collaboration with Nasdaq OMX and FlexTrade Systems.

Nasdaq OMX provided the matching engine, while FlexTrade supplied the Order Management System, or OMS.

DSE has been conducting its transactions using this software for the past ten years.

After market hours, brokerage houses automatically receive settlement data from the FlexTrade OMS.

This data is used for clearing and settlement through Central Depository Bangladesh Limited, or CDBL.

Once completed, brokers can update FlexTrade with the investor's share and cash data, enabling the next day's trading.

Major glitch occurred on Mar 10, 2014, when, despite trading starting, there was no change in the index.

Although 63 brokerage houses traded, they could not settle transactions.

The issue was later resolved, and trade settlements were carried out by DSE.

DSE has frequently faced trading disruptions and technical glitches.

On Jul 4, 2023, consecutive days saw server issues disrupting trading at DSE.

Following the resolution, DSE said in a media statement that the problem arose due to the addition of new service modules to the OMS trading software.

In late October 2022, DSE encountered technical issues twice in a single week.

Both DSE and the regulatory body, Securities and Exchange Commission, or SEC, have formed multiple investigation committees to address these recurring server glitches.