DSE halts trading following a failure in the FlexTrade system

A technical glitch in the trading software delayed the Dhaka Stock Exchange (DSE) from starting transactions on the first day of the week. The issue, which occurred in the order management system of FlexTrade software provided by a Singapore-based company, prevented trading from beginning on time on Sunday.

DSE authorities announced the suspension of trading after failing to resolve the problem by 10am. DSE spokesperson Shafiqur Rahman informed bdnews24.com, saying, "Our IT team is working to resolve the technical glitch." According to a DSE official, the problem stemmed from the order management system of the FlexTrade software.

Trading at DSE is scheduled to begin at 10am.

Despite being fully prepared, Saiful Islam, director of BRAC EPL Stock Brokerage Limited, was unable to access the server. He told bdnews24.com: "We received the notification well after 10am. Our IT team had already started contacting DSE before that. We were informed that ‘trading was suspended due to an unavoidable technical glitch. Trading will resume once the issue is resolved.’"

FREQUENT SERVER ISSUES

A similar major glitch occurred on March 10, 2014, when trading began but the index remained unchanged. Although 63 brokerage houses were able to trade, transactions could not be settled. The issue was eventually resolved, and trade settlements were processed by DSE.

After market hours, brokerage houses automatically receive settlement data from the FlexTrade Order Management System (OMS), which is used for clearing and settlement through the Central Depository Bangladesh Limited (CDBL). Once completed, brokers update FlexTrade with the investor's share and cash data, allowing for the next day's trading. However, on Sunday, there was a delay in receiving the settlement data despite trading taking place.

RECURRING TECHNICAL ISSUES

DSE has frequently experienced trading disruptions and technical glitches. On July 4, 2023, consecutive server issues caused trading disruptions at DSE. Following the resolution, DSE issued a statement explaining that the problem arose due to the addition of new service modules to the OMS trading software.

In late October 2022, DSE faced technical issues twice within a single week.

Both DSE and the Securities and Exchange Commission (SEC) have formed multiple investigation committees to address these ongoing server glitches.