Annual Report 2012 - Lahore Stock Exchange

Technology Services Divisionsupport the existing operations and execute theseplanned projects, it is planned that the division shall growits HR strength from 28 to a total of 47 professionals overthe next 5 years with bulk of the hiring taking place in FY2012-13. In order to conserve costs and consolidate thetechnology and software development operations, nonew head was added to the TSD during FY 2011-12.In order to improve the critically required managementbandwidth in the division, TSD organized a ProjectManagement Workshop spanning 24 sessions for itsAssistant Managers and Managers. 5 best performingteam members were sponsored for PMP (ProjectManagement Professional) institute training andexamination. All have cleared the training and now havescheduled the PMP exam.In recognition of his accomplishments since taking overcharge at the helm of Technology Services Division, Mr.Khurram Zafar, the CIO at Lahore Stock Exchange, wasawarded the Best Private Sector CIO in Pakistan award atthe National ICT Awards organized by the PakistanSoftware Houses Association (P@SHA). In his onlinebrief after the award, Mr. Zafar appreciated the support,hard work and dedication of the entire TechnologyServices Division staff and thanked the management ofthe Exchange.Headed by the Chief Information Officer, the division wasorganized into three departments as per the followingillustration:The IT Software Development department isprimarily tasked with implementing the requirementsdriven by the operations, regulatory and strategydivisions of the exchange. It is also the hub of allinnovation and all the intellectual property of theExchange has originated from this department. Thesoftware Quality Assurance section within the SoftwareDevelopment department is tasked with ensuring that alloutput of the Technology Services division that touchesany of our stakeholders adheres to the strictest standardsof quality and reliability.During the fiscal year 2011-12, the following keydevelopments were primarily driven by the IT SoftwareDevelopment department: In order to revitalize LSE's order book and to mitigateinter-exchange trading issues, Liquidity Network Projectwas developed which aims at allowing the access of itstrading engine to a select list of liquidity providers. Theproject shall comprise of two parts in which one partwould involve the establishment of a technological linkup of the electronic gateways of the selected liquidityproviders with the trading engine of LSE. The other partof the project would involve bilateral commercialagreements by LSE with these liquidity providers so as toensure that most competitive and cost effectivearrangements are offered to LSE TREC holders/investors. The development of LNP project is complete,and is currently in the Quality Assurance phase. Once theregulations for the LNP are approved, LSE will commencea limited pilot with select LSE brokers and LPs beforegoing live with this electronic platform. Enhancements to the ULTRA Trade system based onregulatory amendments prescribed by the SECP for ShortSelling under Ready Market. TREC holder/UIN can shortsell without Up-tick or Zero-Plus Tick up to the followingextent: UIN-Wide Position Limit: 2% of the Average DailyTurnover of the respective security of previous onemonth TREC holder-wide position limit: 4% of AverageDaily Turnover of the respective security of previousone month Market-wide position limit: 40% of Average DailyTurnover of the respective security of previous onemonth. The development of amendments in the short selling isalso complete. Currently, it is being tested by the QAdepartment. Same day UIN registration and reporting support wasadded to the trading platform for comply with revisedregulations. Pre-Settlement Delivery (PSD) support was added tothe ULTRA Trade platform for brokers to avail same-daymargin relaxation against their net-sold positionsreported to NCCPL. Director's Authority mechanism has been incorporatedin ULTRA Trade system which allows the riskmanagement platform to treat directors' accounts asproprietary accounts. Excessive margin can also beutilized using this account.66LAHORE STOCK EXCHANGE