ID :
13423
Tue, 07/22/2008 - 23:28
Auther :
Shortlink :
https://oananews.org//node/13423
The shortlink copeid
TSE system glitch causes temporary halt in Topix, bond futures trading
TOKYO, July 22 Kyodo - The Tokyo Stock Exchange said Tuesday a fresh system glitch had caused a temporary halt in trading of Topix index futures as well as bonds, the latest blunder in a string of technical mishaps that have disrupted transactions on the Tokyo bourse.
Trading was suspended from 9:21 a.m. to early afternoon after some brokerage firms were unable to check orders of derivative instruments on their terminals, a TSE spokesman said.
Over-the-counter trading for the benchmark 10-year Japanese government bond also did not happen in the morning due to the system fault.
Due to the halt, the volume of bond futures trading fell to around 23,500 orders from a daily average of 38,000 orders, according to TSE Senior Executive Officer Hironaga Miyama.
But the TSE resumed all activities at 1:45 p.m. once the transfer of trading orders was confirmed. The trading of listed shares was not affected.
Managing Director Yoshinori Suzuki said a program error occurred after the TSE tried to upgrade software in its new trading system over the three-day holiday in Japan.
According to Suzuki, who is in charge of overseeing the TSE's information and technology strategy, the upgraded software had limited memory capacity, which meant it could only receive trading orders for 88 issues when it should have been able to accept orders for over 20,000 issues.
''As many of you may feel, this trouble was (the result of) a very simple error,'' Suzuki said, adding that the TSE will submit countermeasures as early as possible.
To fix the problem, the TSE removed the upgraded version and reverted to the old software without the newly added functions, he said.
Suzuki also did not rule out filing damages against Fujitsu Ltd., which developed the TSE's trading system, and left open the possibility of replacing the TSE vendor.
''If actual losses surface, we will file for compensation,'' he said.
The Tokyo bourse encountered similar trouble in February soon after it updated its futures trading system in mid-January and trading of two listed shares was also suspended in March following a system fault.
''A similar glitch occurred previously,'' Financial Services Minister Yoshimi Watanabe said at a morning press conference.
''It's necessary to investigate thoroughly why something like this would occur,'' he said, indicating he would request a report from the TSE outlining the cause of the latest system trouble and preventative measures.
While emphasizing that the latest trouble was the result of a simple program error, Suzuki admitted more needs to be done to regain investors' confidence in the Tokyo bourse.
''We realize the system is the TSE's important infrastructure,'' Suzuki said.
''We will make certain of the system's operation to prevent something like this from occurring again.''
Trading was suspended from 9:21 a.m. to early afternoon after some brokerage firms were unable to check orders of derivative instruments on their terminals, a TSE spokesman said.
Over-the-counter trading for the benchmark 10-year Japanese government bond also did not happen in the morning due to the system fault.
Due to the halt, the volume of bond futures trading fell to around 23,500 orders from a daily average of 38,000 orders, according to TSE Senior Executive Officer Hironaga Miyama.
But the TSE resumed all activities at 1:45 p.m. once the transfer of trading orders was confirmed. The trading of listed shares was not affected.
Managing Director Yoshinori Suzuki said a program error occurred after the TSE tried to upgrade software in its new trading system over the three-day holiday in Japan.
According to Suzuki, who is in charge of overseeing the TSE's information and technology strategy, the upgraded software had limited memory capacity, which meant it could only receive trading orders for 88 issues when it should have been able to accept orders for over 20,000 issues.
''As many of you may feel, this trouble was (the result of) a very simple error,'' Suzuki said, adding that the TSE will submit countermeasures as early as possible.
To fix the problem, the TSE removed the upgraded version and reverted to the old software without the newly added functions, he said.
Suzuki also did not rule out filing damages against Fujitsu Ltd., which developed the TSE's trading system, and left open the possibility of replacing the TSE vendor.
''If actual losses surface, we will file for compensation,'' he said.
The Tokyo bourse encountered similar trouble in February soon after it updated its futures trading system in mid-January and trading of two listed shares was also suspended in March following a system fault.
''A similar glitch occurred previously,'' Financial Services Minister Yoshimi Watanabe said at a morning press conference.
''It's necessary to investigate thoroughly why something like this would occur,'' he said, indicating he would request a report from the TSE outlining the cause of the latest system trouble and preventative measures.
While emphasizing that the latest trouble was the result of a simple program error, Suzuki admitted more needs to be done to regain investors' confidence in the Tokyo bourse.
''We realize the system is the TSE's important infrastructure,'' Suzuki said.
''We will make certain of the system's operation to prevent something like this from occurring again.''
