KARACHI: The Karachi Stock Exchange (KSE) has announced to device an automated mechanism to rectify ëan erroneous tradeí with effect from April 15, 2010.
“This system will only allow the trading members to rectify their client-code (i.e. Unique Identification Number or UIN) and/or quantity of the shares. The option to change the price of the scrip will not be available in this mechanism,” reads KSE notice issued on Thursday.
Trade rectification charges shall be applicable on one side (beneficiary UIN) at Rs2.68 per Rs100,000/= worth transaction for ready market and Rs3.75 per Rs100,000/= for all other markets’ rectification trades.
The Exchange has decided that with effect from April 15, 2010 members will be provided at the close of trading, each day between 3:30 and 4:00 pm and for Friday 4:30 to 5:00 pm, a Trade Rectification Session through a special interface on their NCHS-Terminals, the notification added.
Through this system, members will be able to enter corresponding correcting (Client to Client) transactions in the system to rectify and report any erroneous trade carried out during the day on trading software the Karachi Automated Trading Software (KATS).
This will also automatically change the settlement obligations of the previously executed erroneous trades to the rightful client of the respective trade, it added.
Presently, the members are required to report their erroneous trades executed through KATS to the Exchange on the same day to comply with the requirements of relevant Regulations and KSE Notice No KSE/N-4848 dated August 7, 2006, which is making an adverse impact on internal control and procedures at the brokerage houses.
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