CSE’s new automated trading system faces glitches

By Dinali Goonewardene

The Colombo Stock Exchange, which went live with an Automated Trading System version 7 replacing version 6 last Friday, saw some minor hiccups, brokers complained.

The new system sees red arrows and green arrows alongside quotes indicating price fluctuations upwards and downwards, unlike the old system which only showed arrows when the previous trade had been executed and not the price difference between quotes, brokers said. They indicated that this was confusing.

Brokers also said screen with broker stock preferences cannot be saved in the new system and the system automatically shuts brokers out after a short while and they have to log in again. The new system does not show CDS quantities, high-low prices, volumes for various periods and block trades unless the broker checks all the companies. The old system carried these features.

Odd lots which are shares not traded in multiples of 100 are now being traded through the main board increasing transaction costs and deterring custodians from playing the market, they said. Each transaction carried out sees a brokerage fee being levied in addition to a transaction fee. Thus transaction fees have to be paid for the odd lots as well as normal volumes under the new system increasing costs for participants.