Lahore Stock Exchange Limited in its continuous efforts to overcome problems of liquidity crunch and lack of market depth has achieved another milestone by introducing Smart Order Management System (SOMS). The launching ceremony was organized by the Management of Lahore Stock Exchange today in the LSE Auditorium wherein huge number of participants and representatives from different channels of Electronic and Print Media witnessed the inauguration ceremony.
On the event, Mr. Aftab Ahmed Ch., CEO and Managing Director of LSE informed the participants that there was a time when LSE was playing a leading role in IT innovation and development in the capital market but since 2000 crisis, volume of LSE began to decline gradually. The activity of volumes drain leads to lack of liquidity and lack of market depth at the Exchange which shifted the market share of LSE to other exchanges, reason being low liquidity.
Elaborating the salient features of the product, he explained that SOMS will facilitate the LSE’s TREC Holders for inter-exchange and intra-exchange trading using single interface. It is an integrated system with LSE’s Back Office bridging the gap between Smart Stock System and Front-office. Every order from proprietary account or on behalf of clients shall be filtered by Client Trade Risk Filter (CTRF) and after validation SOMS shall place it at LSE’s trading system with flexible halt time at Ultra then automatically rout to the designated KSE’s counter-part for its execution. By this system, a number of inter-exchange issues shall be reduced significantly. SOMS is capable to exchange messages of Order Queued, Order cancellation and Order Execution. In addition to this, the system shall also update all the trades in the Back-Office on real time basis instead to load inter-exchange trades manually at the end of the day as per existing practice.
In a query raised by the participants, Mr. Aftab told that SOMS shall provide the opportunity to Brokers to trade at multiple exchanges through one interface and the system is hassle-free to monitor manually the buying power and excess sale by any account holder, hence it would be beneficial for the brokers to avoid delivery-failure in the settlement. He was optimist that LSE would be able to create market depth and liquidity on account of number of initiatives taken by LSE and with due cooperation of TREC Holders. The participants much appreciated the efforts of LSE for the development of the capital market.
