NSE should learn hard lessons from JSE

It’s almost strange that trading at the Johannesburg Stock Exchange (JSE) had to extend hours on July 14th because of a network problem.

South Africa has been elevated by other African countries as the model in technological advancement. That’s why it was hard for me to believe when my friend Pearl told me that the system was down almost the whole day and trading was extended to 7 pm.

As we drove through the streets of Jo'burg, or Jozi as it is locally known, Pearl explained that it was not the first time the system was interrupting trade. We laughed at how South Africa is taking the route to mediocrity and almost becoming a true African state (read hopeless systems that hung time after time, and no one apologizes or puts backup measures).

I narrated to Pearl how brokers at the Nairobi Stock Exchange (NSE) were jubilant when the new electronic trading system was unveiled, saying that they were catching up with JSE in terms of electronic trade.

I am sure the authorities at NSE are monitoring the happenings at JSE, but do not be shocked if you read an article saying that the system at NSE froze and they had no back up, so trading had to be extended or ended prematurely.

The funniest thing is that few companies invest in backup systems, citing high expenses in maintaining redundant links. Banks lead in backup systems because of the sensitive data.

Given the inability to learn from past mistakes as exemplified in other sectors, IT should take a different path, because it also evolves very fast.