Some insiders, however, said some DSE stalwarts in collaboration with previous maintenance service providers had manipulated the system so that it collapses following the expiry of the maintenance contract.

They said it was done in order to ensure continuation of the contract with the previous vendors in exchange for handsome kickbacks for the stalwarts.

Sources said the day on DSE began like the previous days with starting of pre-opening session but most of the brokers failed to log in to the system for reasons unknown.

The DSE system was generating 'text file errors' forcing the authorities to contact vendors and renew contacts immediately.

The DSE officials continued online consultation with the maintenance company throughout the day and were finally able to identify the bug.

"But trading could not take place as the time was over. One site engineer of the maintenance company and other local technical people are working hard. The company experts are providing consultation online and we hope to restore system by evening and resume trading from tomorrow (Tuesday)," DSE Chief Executive Officer Salahuddin Ahmed Khan told The Daily Star.

This is the major technical fault in DSE automated engine since the introduction of the system on August 10, 1998. In the initial period, the system faced some troubles that forced authorities to suspend trading for the whole day. Other than that, DSE engine only faced highest disruption for two hours.

DSE is perturbed by the yesterday's system disruption on the eve of Opposition-called countrywide half-day strike which will be followed by public holiday on November 7 on the occasion of national solidarity day. There will be no trade during November 11-16 as DSE will go on a six-day Eid vacation.

Meanwhile, hundreds of brokers and thousands of investors kept waiting on the premises of DSE hoping for trade to resume.

Initially DSE informed brokers that trading will begin from 11:30 am which was later rescheduled to 12:00 noon. The DSE finally called the day off following an emergency board meeting.

The Securities and Exchange Commission (SEC), expressing its frustration, instructed DSE to keep it up-to-date on the issue asking it to put all efforts for restoring the system as early as possible.

SEC Executive Director Mansur Alam said the premier bourse should have backup arrangements in case of any technical problem in trading engine. "Usually people tend to liquidate shares ahead of Eid. But if trading remains off, it will dishearten investors," he told The Daily Star.

The technical glitch came only two days after DSE approved a US$ 2.28 million proposal to upgrade its six-year old automated trading system.

In a board meeting on Saturday, DSE approved a letter of intent to be issued to technology vendor SSIT awarding it a US$ 0.79 million contract to supply necessary hardware and software.

As per the letter of intent, the vendor will also offer a six-year maintenance for US$ 1.49 million once the upgradation process is completed.

Since introduction of automated trading in 1998, DSE had maintenance deal with US company Tandem Computers Ltd that expired on October 31 this year. In a temporary arrangement, DSE few days back hurriedly signed maintenance deal with Swedish company Scandent and Solutions Ltd until the upgraded system starts functioning.

Sources said DSE trading system collapsed at a time when the trading is recovering from sudden fall in the last five trading days following a bull run in the previous weeks.

Turnover on DSE hit record Tk 38.04 crore on October 24 and then started falling heavily. However, it showed sign of recovery on Sunday.

Latest
A press statement of DSE late in the evening yesterday said the system has been restored. "Trading will resume as usual from November 2, 2004."