Trading System Purchase
DSE inks high-cost deals with 2 US cos today
The Dhaka Stock Exchange has decided that it will strike final deals with two US-based companies today to procure costly trading systems for the bourse keeping in mind its plan of introducing derivative and commodity markets in future. The bourse made the decision at a board meeting on Wednesday after getting green signal from the Bangladesh Securities and Exchange Commission, stock market regulator.
As per the board decision, the bourse will procure its matching engine from NASDAQ OMX, an American multinational financial services corporation, and the order management system from FlexTrade, a US-based multinational company.
The DSE board on March 10 had selected the two companies to procure a new automated trading system for the bourse amid a BSEC embargo.
The BSEC had imposed the ban in January following an allegation of irregularities by software vendor Nordic Growth Market NGM AB which competed to sell matching engine to the bourse and was rejected by the DSE external committee.
The vendor had alleged that the bourse’s process of procurement was non-professional and opaque.
Following the allegation the BSEC on January 28 asked the DSE to explain
the bourse’s position regarding the accusation.
‘The board has finalised the decision to procure the automation system after getting consent from the BSEC as the commission has expressed its satisfaction over the procurement process,’ DSE managing director Swapan Kumar Bala told New Age on Thursday.
The bourse will make final deals with the vendors on Friday to procure matching engine and order management system for the bourse, said Swapan.
Swapan, however, denied disclosing costs of the systems.
A BSEC high official told New Age that the commission allowed the bourse to procure matching engine and OMS after getting satisfactory explanations from the bourse regarding its procurement process.
Another DSE official said that the costs of the automation system might be disclosed on Friday after striking the deals.
DSE officials earlier told New Age that the matching engine and the OMS would cost the DSE around Tk 75 crore in the first five year of their installation.
The DSE will need more money for completing its automation process.
Of the cost for the matching engine and the OMS, the DSE will have to pay around Tk 27 crore in the first year of installation, the sources said.
The sources said there were some other vendors who were willing to provide the system with lower costs, but the DSE external committee on the procurement decided not to purchase the systems from them considering various reasons.
-With New Age input
