Bolsa Mexicana de Valores SAB, the operator of Mexico’s securities exchange, said the market data platform that caused delays in stock pricing yesterday should be fixed before trading resumes.
The bourse plans to have the slowdown resolved before the stock market opens today at 8:30 a.m. Mexico City time, Enrique Ibarra, the exchange operator’s head of technology, said in a telephone interview yesterday from Mexico City. Bolsa Mexicana will implement broad updates to its system for market data by Sept. 24 as part of a previously scheduled optimization, according to Ibarra.
“We had a technical problem with a component of the platform,” Ibarra said.
A surge in trading, marked by a record number of orders, exacerbated the delays, Ibarra said. Trading volume on the benchmark IPC index of 35 Mexican stocks has climbed 22 percent in the past week after the bourse implemented a new trading engine on Sept. 3, luring more so-called high-frequency traders to the market. High frequency traders use computers programs to automatically execute fast-paced trading strategies.
The new trading engine itself, known as MoNet, operated without incident yesterday, Ibarra said.
MoNet is about 300-times faster than its predecessor, with the capacity to handle about 100,000 transactions per second, according to a presentation distributed to journalists on Sept. 11. It’s also equipped with filters that track unusual prices and volumes to prevent erroneous trades from entering the system, according to the bourse.
“If we had the previous trading platform and we’d received the number of transactions we received today, the system wouldn’t have held up,” Ibarra said. “In fact, there would have been a recess,” he said, referring to a temporary stoppage of trading.