TMS back online, share trading resumes today
Share trading, which was suspended on Monday due to a technical problem, is set to resume on Tuesday. Trading is reopening after the issue at the data hub hosting the TMS of 72 brokers was resolved. However, the incident has raised serious questions about cybersecurity in the capital market.
Regular share trading, which was suspended on Monday due to a technical problem, is set to resume today, Tuesday. Trading is reopening after the issue at the data center of Data Hub Pvt. Ltd., which hosts the Trade Management System (TMS) of 72 broker companies, was resolved.
After a problem appeared in the data hub's infrastructure from the morning of Ashoj 4, the TMS of most brokers could not operate. Although a technical team worked continuously to resolve the issue, the system was not fully operational until Monday, prompting the Nepal Stock Exchange (NEPSE) to decide not to take any risk and suspend regular trading for Ashoj 5.
Various sources indicate that the problem at the data hub was not merely a routine technical failure but was related to a ransomware attack. The incident in the data hub's infrastructure affected the TMS of 72 broker companies as well as various interconnected systems.
With the systems of 72 brokers affected, the market had to be shut down on Monday. The Stock Brokers Association of Nepal had urged halting trading, saying that continuing operations until the problem was resolved could cause further damage to NEPSE's overall trading system. Subsequently, NEPSE suspended Monday's trading as per Rule 21(1) of the Securities Listing and Trading Regulations, 2075.
Although the market is set to reopen after a one-day disruption, the incident has raised serious questions about the technical infrastructure, cybersecurity, and preparedness of alternative systems in Nepal's capital market. The Securities Board of Nepal (SEBON) has also taken the incident seriously and directed NEPSE to study and investigate the matter and submit a report with necessary reforms by Ashoj 12 to prevent such incidents in the future.
SEBON has already deployed a five-member inspection team led by a Deputy Executive Director to identify the cause of the incident. The board said it will take necessary steps based on the team's recommendations to make the capital market's trading system more secure and reliable.