Chi-X Australia Pty, the rapidly growing alternative exchange to Australia’s ASX stock market, planned to make an important move this week with the launch of its “market on close” auction product. However, the launch was delayed by the Australian Securities and Investments Commission due to a system error over the weekend at ASX, Bloomberg reported.
The product will allow Chi-X Australia users to participate in an auction held at the end of each trading day on the ASX. It was supposed to begin Nov. 25 for all S&P/ASX 200 companies, with no minimum order, but changes with the software running ASX Trade prompted a delay.
“ASX’s monitoring detected a potential issue with some third-party provided software that, along with other enhancements to ASX Trade, was due to be implemented last weekend,” ASX spokesman Matthew Gibbs told Bloomberg. “To prevent any disruption to normal market operation, we made the decision to postpone until a fix could be put in place. We were not prepared to put the Australian market at risk. We will now work with ASIC, Chi-X and clients to plan for a new implementation date.”
Until roughly two years ago, ASX was Australia’s only exchange. Since its October 2011 launch, Chi-X has seen rapid growth, and it has now captured more than 15 percent market share of the country’s continuous trading. The launch of new products such as MOC is important in helping the exchange build its competition against its rival, a recent Financial News article noted. The software outage is therefore a major complication.
“It’s a complete disaster,” Chi-X CEO John Fildes told Bloomberg.
The incident also underscores the way corporate product launches and major business moves of all types can be derailed by software errors. Companies can reduce the likelihood of such incidents by using tools like source code analysis to scan for problems and catch lingering flaws in code. By eliminating errors during the development process, businesses can work to avoid having their software be the reason a major corporate move is unsuccessful.
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