PSX amends rules to allow modifying unfilled orders in open session

In a major development, the Pakistan Stock Exchange (PSX) on Thursday removed the restriction to modify and/or cancel unfilled orders in open session.

According to a notification, the change is result of an amendment in the PSX Regulation 8.15.7, which will allow securities brokers to modify or cancel unfilled orders from the commencement of regular trading activity immediately after the completion of the order matching and confirmation period.

It also amended Regulation 4.25 in order to empower the stock exchange to conduct verification, review, or inspection of a Securities Broker to ensure compliance with the requirements of PSX Regulation 4.25.1 or require a Securities Broker to submit an audit report on compliance with the requirements of the aforesaid Regulation in such manner as specified by PSX.

Furthermore, PSX Regulation 4.25.1(f) has been inserted from the information security point of view, which requires the Securities Brokers to implement a multifactor authentication mechanism – such as one-time password, PIN, soft tokens – to use PSX applications, which process or store sensitive data.

The PSX has also inserted “Market Misconduct Regulations” to empower the stock exchange to detect and prevent market misconduct such as insider trading, false trading, market rigging, and market manipulation, to ensure an orderly and fair market.

Furthermore, the PSX can also enquire and obtain information, records, and documents to determine whether any market misconduct has occurred.

In case of any adverse findings, the PSX shall take consequential actions in accordance with regulations.

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