DFM hit by second system glitch

Dubai Financial Market (DFM) said last week it was looking to overhaul its entire trading system after suffering its second major computer glitch in just over two months.

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By  Diana Milne Published  April 9, 2006

Dubai Financial Market (DFM) said last week it was looking to overhaul its entire trading system after suffering its second major computer glitch in just over two months. Trading was interrupted on April 1, after the exchange’s systems failed to cope with unusually heavy trading volumes that day. DFM said the problem was due to a technical failure in the primary trading system. “This failure occurred due to an upgrade being made to enhance the capacity of the trading system by a software company contracted by DFM,” the exchange said in a statement. “DFM is currently conducting intensive studies to upgrade and enhance the entire trading system, to continuously improve the service it offers to investors,” the statement continued. This latest problem for DFM follows an incident with its website on February 26, which saw the site go offline for over 30 minutes during the day’s trading. Following that incident, DFM said it was switching the main hosting for its website from Etisalat’s eCompany business unit to managed hosting firm eHosting Datafort (see IT Weekly 11- 17 March 2006). On April 1, DFM had traded more than 376 million shares, worth over US$1 billion, according to a report in a local newspaper. That volume of trading slowed down the speed of the trading system, at which point DFM tried to implement an upgrade to increase capacity. When this was found to be not working, the exchange reverted to the older system. In its statement, DFM said it has taken all appropriate measures with its supplier company and “succeeded in correcting the failure in a very short time.” The exchange extended its trading hours by 30 minutes to compensate for the lost downtime. Stockbrokers can buy and sell stock directly through the DFM system, or alternatively, trade online through the Mubasher Trade system — a software tool that links users to DFM’s main trading system and allows them to buy and sell online with no intermediaries.

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