Pre-Trade Verification System at the Stock Exchanges

The pre-trade verification system would be put into place from Monday (Sept 12) at the stock exchanges. That was one of the nine points on which market players and the corporate regulator had inked an agreement in the presence of Prime Minister Shaukat Aziz on August 19.

The system is universally believed to be a step that would strengthen risk management measures, which would eventually contribute to improving the health of the bourses. But the question that boggles many minds is whether the stock exchange has developed or acquired the required technology and software to introduce the system as early as on September 12 and whether all market players have adequate knowledge of how the system would function?