Jamaica Stock Exchange develops real-time Monitoring System

The Regulatory & Market Oversight Division (RMOD) of the Jamaica Stock Exchange (JSE) along with its Information Technology Department has undertaken steps to develop a semi-automated market surveillance system. The RMOD takes time out to speak with the JSE’s IT Manager, Miss Suzette McNaught, on the update of the system.

RMOD: Miss McNaught, many persons may not understand what is meant by ‘Automated Market Surveillance System’ (or MSS), it does sound like technical computer jargon; but in layman’s terms, what exactly is the Automated Market Surveillance System? Whew, it’s really a mouthful!

SM: The MSS system is really not very difficult to understand. In its simplest form, it is a system that will facilitate daily, near real-time monitoring and tracking of trading activities such as insider trading, and other market infractions which may occur during trading on the Jamaica Stock Exchange.

RMOD: Why is this programme deemed necessary at this point in time?

SM: It is deemed necessary as the Exchange is committed to fulfilling its mandate of providing a fair, efficient and transparent stock market. Based on this mission statement, it is the Exchange’s responsibility to ensure that all transactions conducted on the trading platform are being effected in accordance the JSE’s rules and regulations, thereby maintaining transparency in the market.


RMOD: Presently, the Exchange uses the Horizon system. How will this new system differ from it?

SM: With the constant growth and evolution of the Exchange, Horizon does not adequately meet the needs of market surveillance requirements. For example, Horizon cannot track listed companies submission of financial statements or monitor infractions such as front-running. However, MSS has been developed to address these requirements and will definitely aid the RMOD in the quality of service that it provides to its key-stakeholders, i.e., to promote market transparency through the enforcement of rules and regulations, market surveillance and the assessment of financial statements.

RMOD: The new programme does sound very exciting; can you elaborate on some of the benefits of this system?

SM: As I’ve already mentioned, the system will facilitate near real time monitoring of trading-activities. Additionally, it is very user-friendly simple to use, and easy to implement and maintain. The program will be able to generate specific reports and this will undoubtedly assist the efficiency of the RMOD in protecting stakeholders’ welfare. Equally, the MSS is a very flexible system and what that means is that the system allows for future development. Therefore, as the functions of the RMOD expand and compliance and regulatory functions change, the program will be upgraded to meet the changing requirements.

RMOD: So far, the development of the MSS is a little over the half way mark for completion. What components have been completed and what is left to be done?

SM: The IT Department, as the RMOD, are very happy with the progress of Project. The modules completed to date are admin and maintenance, automatic alert simulation, alerts configuration and reporting module is 50% complete. The next phase of the project will see the completion of the reporting modules, the development of the manuals and user acceptance testing. The project is on schedule and is expected to be completed by  September 2009.

RMOD: So September 2009 it is; we look forward to it! Ms. McNaught, thank you so much for taking the time out to answer our questions.

SM: You are most welcome!