Gremlins attack TSE again, stall after-hours trading Glitch-free two weeks

Garry Marr Financial Post

The Toronto Stock Exchange, still reeling from technical problems, had to deal with another breakdown Monday after almost two weeks of glitch-free performance.

Steve Kee, manager of information services for the TSE, said yesterday the exchange's after- hours trading was delayed.

"There was a software problem which delayed the last trading session," said Mr. Kee. "All the orders were able to be traded once it started. We are doing further investigation."

The TSE offers trading for one hour after the 4 p.m. bell, during which shares can be exchanged at the price they closed at. On Monday, after-hours trading did not begin until 4:31 p.m., about 20 minutes later than the usual start. On March 7, the TSE experienced one of its worst delays when a hardware problem shut down the exchange for 2 1/2 hours. The TSE closed two minutes early on Feb. 21 after some member firms were unable to make trades for the last 15 minutes because of a breakdown in the order-management system. The session before, some member firms were unable to confirm trades after the Toronto broadcast feed shut down for 10 minutes.

Paul Bates, president of Charles Schwab Canada and a TSE governor, said yesterday the latest problem is cause for concern.

"It's a big deal in the sense that we don't need any more computer problems," said Mr. Bates.

Barbara Stymiest, chief executive of the TSE, said this month that member firms are part of the exchange's problem because they are using outdated technology.

The TSE expects to have most of its volume-related problems fixed by Sept. 1, when all its members will have had their CATS trading system computer terminals replaced. The system has been in place since 1977.

"It's partially true [that members are to blame]," said Mr. Bates.

"The issue here is the order management software as it relates to order routing to the exchange. Some firms are still in final development of how they will mange that process, ours included. There is a shared responsibility."

http://www.nationalpost.com/financialpost.asp?f=000322/238274&s2=canadianbusiness

-- Carl Jenkins (Somewherepress@aol.com), March 22, 2000