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Race is on to service stampede of e-brokers

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Technology providers are scrambling to service the online share trading sector - which is expected to grow rapidly following today's launch of the stock exchange's new electronic trading system.

The providers are helping brokers - of which there are about 500 - to prepare their systems for the new Automatic Order Matching and Execution System (AMS/3), which will allow investors direct access to local stock trading via the Internet.

One, eBrokers Systems, provides online brokers with application service provider solutions from front-end trading to back office settlement.

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It has nine brokers on its books, ranging from international player Goldman Sachs to locally based Celestial Asia, and plans to attract another 20 by the end of the year, said chief executive Nick Ng.

Another provider, i21, is offering a low-cost service which could help small brokers compete, said chief executive Rickie Fung.

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iAsia Technology, controlled by casino tycoon Stanley Ho Hung-sun's family, is ranked higher in terms of costs, but director Lawrence Ho says: 'We think, at the end of the day, the determinant of success is technology, but not price.'

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