KLSE-Tandem Deal Worth US$30M

by Anita Devasahayam

KUALA LUMPUR: The Kuala Lumpur Stock Exchange (KLSE) has purchased Tandem fault tolerant computer systems and software estimated at US$30 million (M$81 million) from Formis Computers.

Sources said that the deal was expected to be concluded in mid-July. The systems, comprising 12 Tandem CPUs and applications, are expected to be used solely to implement scripless trading which is expected to be fully in place in June next year.

From July I this year, however, KLSE will introduce an interim programme, the Broker Depository System (BDS).

The 12 CPUs are likely to be distributed throughout KLSE’s regional centres across the country.

Industry watchers questioned the fact that no public tender was put out for the contract. Whilst the KLSE is a private company, some argued that the amount paid for the systems was “sky high”.

The bourse is keeping mum over the purchase but Formis has confirmed the deal although it declined to reveal any details or to confirm its value.

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