The JSE is moving forward with its R190 million IT overhaul, codenamed project Orion, which will see the bourse upgrade to next-generation systems.
COO Leanne Parsons, who overseas the project, says while it is vital to get the project up and running as soon as possible, this imperative must be balanced with ensuring implementation does not disrupt the JSE`s core function.
"The JSE and Accenture are working to complete the new systems as fast as possible; however, our key objective is to ensure there is no interruption of service to JSE customers," she says.
CEO Russell Loubser said in July that the project should be complete in 2007. Project Orion, which has been plagued by delays, is a "major priority" for the bourse and will enable it to leverage the data the JSE has available. "Now that`s the beauty of technology," said Loubser.
Negotiations for the project, which was set at a fixed cost of R190 million, started four years ago, and the initiative would have run substantially over budget, had the JSE not fixed the price.
Mission-critical
Parsons says delays have been incurred because of design complexities. "The systems that are being replaced are, in most cases, more than 20 years old and contain outdated logic and functionality."
Some of the IT that will be replaced is considered mission-critical; for example, its broker dealer accounting system, which is 20 years old and written in a language that "is fast becoming only understandable by people who are past retirement".
The dealer accounting system - provided by the JSE to equity members - also enables close regulation of members` activities. "This clearly is not conducive to business continuity, so there is a business need to make sure it is rewritten and replaced by technology that is next-generation," explains Parsons.
"Replicating all the capabilities of the legacy systems, for which there is not always sufficient documentation, requires careful analysis, design and, occasionally, reverse engineering, as well as rigorous testing. While we anticipated much of this complexity, the increased scope, rapid developments in the financial services industry and our focus on a seamless systems transition for members have caused delays."
The bourse says it is the only stock exchange in the world that has undertaken a complete overhaul of its entire system. As a result, there are no benchmarks in terms of how long this should take.
"Orion is about building 'next-generation` systems that will increase the exchange`s efficiency, improve customer service and facilitate the introduction of new products and services," says Parsons.
Once implemented, Orion will result in a lower ongoing future total cost of ownership of IT, he adds.
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