Cse System Error Shorts Operators

The C-STAR online trading network at the Calcutta Stock Exchange (CSE) saw a major system error yesterday, resulting in some 17 sell orders and 23 buy orders from Friday remaining undeleted in the system and getting carried over to yesterday's trading session.

Consequently, marketmen claimed several operators who had put through buy orders on Friday lost money, while those who put through sell orders today gained as prices fell on opening trades yesterday.

The error was spread across approximately 15 stocks including such high value scrips as Satyam Computers, DSQ Software Ltd and Reliance Industries Ltd. The error was noticed by the brokers in the morning, but before they could address it, some trades had already taken place.

 

The brokers demanded trading be suspended and the trades reverted to Friday's prices, but the exchange authorities decided to continue without interruption. Agitated brokers gheraoed the exchange President J M Chowdhary in the contingency pool area of the exchange and heated arguments followed.

Tapas Datta, executive director, CSE, however, said, "The volumes in the problem stocks were very low. We have already ordered an inquiry into the matter, and will certainly ensure that it never happens again." The exchange authorities met in the evening to discuss the problem.

Despite Datta's protestations, the scene at the bourse in the morning was charged. The brokers had not run out of steam even in the evening.

Independent inquiries by Business Standard into the problem revealed that the problem, though claimed to have been caused by a software error, was not beyond the scope of having been caused by human error. CMC provides software support to CSE.

A CSE source said, "Minor goof ups happen every other day, but what made today's incident so big is the fact that it was visible." A similar problem had once occurred earlier with badla trading, the source added.

Exchange sources also revealed that the system sometimes runs behind real time. This happens if the system administrators conduct diagnostic and other operations during trading hours.