The Philippine Stock Exchange (PSE) is the only stock exchange in the Philippines. It is one of the oldest stock exchanges in Asia, having been in continuous operation since the establishment of the Manila Stock Exchangein 1927. It currently maintains two trading floors, one at the PSE Centre (Tektite), Ortigas Center in Pasig City, and one at its principal office at the Ayala Tower One in Makati City's Central Business District. The PSE is composed of a 15-man Board of Directors with Jose T. Pardo as Chairman.
The main index for PSE is the PSEi, which is composed of a fixed basket of thirty (30) listed companies. The PSEi measures the relative changes in the free float-adjusted market capitalization of the 30 largest and most active common stocks listed at the PSE. The selection of companies in the PSEi is based on a specific set of public float, liquidity and market capitalization criteria. There are also six sector-based indices as well as a broader all shares index.
Trading in the PSE is a continuous session from 9:30AM to 3:30PM daily with a recess from 12:00PM to 1:30PM.
History
The Philippine Stock Exchange was formed from the country's two former stock exchanges, the Manila Stock Exchange (MSE), established on August 8, 1927, and the Makati Stock Exchange (MkSE), which was established on May 27, 1963.
Although both the MSE and the MkSE traded the same stocks of the same companies, the bourses were separate stock exchanges for nearly 30 years until December 23, 1992, when both exchanges were unified to become the present-day Philippine Stock Exchange.
In June 1998, the Securities and Exchange Commission (SEC) granted the PSE a "Self-Regulatory Organization" (SRO) status, which meant that the bourse can implement its own rules and establish penalties on erring trading participants (TPs) and listed companies.
In 2001, one year after the enactment of the Securities Regulation Code, the PSE was transformed from a non-profit, non-stock, member-governed organization into a shareholder-based, revenue-earning corporation headed by a president and a board of directors. The PSE eventually listed its own shares on the exchange (traded under the ticker symbol PSE) by way of introduction on December 15, 2003.
Business
On January 4, 1993, MSE started the computerization of its operations using the Stratus Trading System (STS) with a company called Equicom. Later that year, on June 15, MkSE adopted the MakTrade trading system. Both systems were linked on March 25, 1994 to produce a One Price-One Market exchange. On November 13, 1995, the implementation of the Unified Trading System (UTS) allowed the use of a single-order-book system on a MakTrade software where all the orders are posted and matched in one computer.
In October 2004, the Securities Clearing Corporation of the Philippines (SCCP), a clearing and settlement agency for depository eligible trades, became a wholly owned subsidiary of the PSE. The SCCP acts as the settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund.
In 2005, the PSE adopted an online daily disclosure system (ODiSy) to improve the transparency of listed companies and ensure full, fair, timely and accurate disclosure of material information from all listed companies. The ODiSy provides 24/7 online system access for the submission of all types of disclosures.
On July 26, 2010, the PSE launched its new trading system, PSEtrade, which replaced the MakTrade system. The system was acquired from the New York Stock Exchange. The PSEtrade is designed to trade a wide range of cash, debt and derivative instruments, something which was not possible before using the MakTrade system. The PSEtrade is also expected to significantly improve the capacity of the PSE to handle any future sharp increase in its value turnover.
On July 7, 2011, the PSE spun off its Market Regulation Division into a separate independent company named Capital Markets Integrity Corporation (CMIC) as part of the Exchange's commitment to good corporate governance. The CMIC shall ensure the regulatory independence over the audit, surveillance and compliance activities of TPs. The CMIC received its provisional Self-Regulatory Organization status on February 2, 2012 and subsequently began operations in March of the same year. On May 8, 2012, the CMIC launched its new surveillance system called Total Market Surveillance (TMS), which was acquired from the Korea Stock Exchange. The TMS features detection rules, statistics analysis models, and pattern recognition logics needed to enhance monitoring of stock market transactions. TMS is also designed to support a market of one million orders/trades per day.
In 2013, The PSE rolled out its new three-year strategic plan which focuses on introducing more products and services to the market. A new listing board structure was adopted, switching from the previous three-board structure to the current two-board structure consisting of the Main Board and the SME board. In April, the PSE launched its online service bureau called PSETradex, to date, several brokers have launched their online trading facility using the platform. On November 25, 2013, the co-branded SGX-PSE MSCI Philippines Index Futures was listed at the Singapore Exchange. A few days later on December 2, 2013, the first Exchange Traded Fund, First Metro Philippine Equity Exchange Traded Fund, Inc. (FMETF), was listed at the PSE. Also in December, the Exchange released the list of Shariah-compliant securities. This initiative marks the PSE's foray into Islamic Finance. All listed companies will be screened for Shariah-compliance every quarter. On December 27, 2013, the portal for the new disclosure system co-developed with the Korea Exchange known as EDGE (Electronic Disclosure Generation Technology) went live.
The main index for PSE is the PSEi, which is composed of a fixed basket of thirty (30) listed companies. The PSEi measures the relative changes in the free float-adjusted market capitalization of the 30 largest and most active common stocks listed at the PSE. The selection of companies in the PSEi is based on a specific set of public float, liquidity and market capitalization criteria. There are also six sector-based indices as well as a broader all shares index.
Trading in the PSE is a continuous session from 9:30AM to 3:30PM daily with a recess from 12:00PM to 1:30PM.
History
The Philippine Stock Exchange was formed from the country's two former stock exchanges, the Manila Stock Exchange (MSE), established on August 8, 1927, and the Makati Stock Exchange (MkSE), which was established on May 27, 1963.
Although both the MSE and the MkSE traded the same stocks of the same companies, the bourses were separate stock exchanges for nearly 30 years until December 23, 1992, when both exchanges were unified to become the present-day Philippine Stock Exchange.
In June 1998, the Securities and Exchange Commission (SEC) granted the PSE a "Self-Regulatory Organization" (SRO) status, which meant that the bourse can implement its own rules and establish penalties on erring trading participants (TPs) and listed companies.
In 2001, one year after the enactment of the Securities Regulation Code, the PSE was transformed from a non-profit, non-stock, member-governed organization into a shareholder-based, revenue-earning corporation headed by a president and a board of directors. The PSE eventually listed its own shares on the exchange (traded under the ticker symbol PSE) by way of introduction on December 15, 2003.
Business
On January 4, 1993, MSE started the computerization of its operations using the Stratus Trading System (STS) with a company called Equicom. Later that year, on June 15, MkSE adopted the MakTrade trading system. Both systems were linked on March 25, 1994 to produce a One Price-One Market exchange. On November 13, 1995, the implementation of the Unified Trading System (UTS) allowed the use of a single-order-book system on a MakTrade software where all the orders are posted and matched in one computer.
In October 2004, the Securities Clearing Corporation of the Philippines (SCCP), a clearing and settlement agency for depository eligible trades, became a wholly owned subsidiary of the PSE. The SCCP acts as the settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund.
In 2005, the PSE adopted an online daily disclosure system (ODiSy) to improve the transparency of listed companies and ensure full, fair, timely and accurate disclosure of material information from all listed companies. The ODiSy provides 24/7 online system access for the submission of all types of disclosures.
On July 26, 2010, the PSE launched its new trading system, PSEtrade, which replaced the MakTrade system. The system was acquired from the New York Stock Exchange. The PSEtrade is designed to trade a wide range of cash, debt and derivative instruments, something which was not possible before using the MakTrade system. The PSEtrade is also expected to significantly improve the capacity of the PSE to handle any future sharp increase in its value turnover.
On July 7, 2011, the PSE spun off its Market Regulation Division into a separate independent company named Capital Markets Integrity Corporation (CMIC) as part of the Exchange's commitment to good corporate governance. The CMIC shall ensure the regulatory independence over the audit, surveillance and compliance activities of TPs. The CMIC received its provisional Self-Regulatory Organization status on February 2, 2012 and subsequently began operations in March of the same year. On May 8, 2012, the CMIC launched its new surveillance system called Total Market Surveillance (TMS), which was acquired from the Korea Stock Exchange. The TMS features detection rules, statistics analysis models, and pattern recognition logics needed to enhance monitoring of stock market transactions. TMS is also designed to support a market of one million orders/trades per day.
In 2013, The PSE rolled out its new three-year strategic plan which focuses on introducing more products and services to the market. A new listing board structure was adopted, switching from the previous three-board structure to the current two-board structure consisting of the Main Board and the SME board. In April, the PSE launched its online service bureau called PSETradex, to date, several brokers have launched their online trading facility using the platform. On November 25, 2013, the co-branded SGX-PSE MSCI Philippines Index Futures was listed at the Singapore Exchange. A few days later on December 2, 2013, the first Exchange Traded Fund, First Metro Philippine Equity Exchange Traded Fund, Inc. (FMETF), was listed at the PSE. Also in December, the Exchange released the list of Shariah-compliant securities. This initiative marks the PSE's foray into Islamic Finance. All listed companies will be screened for Shariah-compliance every quarter. On December 27, 2013, the portal for the new disclosure system co-developed with the Korea Exchange known as EDGE (Electronic Disclosure Generation Technology) went live.
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