Philippine Stock Exchange

Philippine Stock Exchange
Type	Stock exchange
Location	Pasig City, Philippines
Coordinates	14°33′22″N 121°1′22″E / 14.55611°N 121.02278°E / 14.55611; 121.02278
Founded	December 23, 1992
Owner	The Philippine Stock Exchange, Inc.
Key people	Jose T. Pardo, Chairman
Currency	Philippine Peso (₱)
No. of listings	253 (2010)
MarketCap	₱8.9 trilion (2010)
Website	www.pse.com.ph

The Philippine Stock Exchange (Filipino: Pamilihang Sapi ng Pilipinas) (PSE: PSE) is the national stock exchange of the Philippines. It is one of the oldest stock exchanges in Southeast Asia, having been in continuous operation since its inception in 1927. It currently maintains two trading floors, one at the Ayala Tower One in Makati City's Central Business District, and one at its headquarters in Pasig City. The PSE is composed of a 15-man Board of Directors, chaired by Jose T. Pardo.

The main index for PSE is the PSE Composite Index or PSEi, which is composed of thirty (30) listed companies. The selection of companies in the PSEi is based on a specific set of criteria. There are also six additional sector-based indices.

Trading in the PSE is a continuous session from 9:30 am to 1:00 pm daily, one of the shortest among Asian stock exchanges. In January 2012 a trading extension will be implemented; trading will begin at 9:30 am and end at 12:00 pm, pause for a 1 hour 30 minute break, and resume trading from 1:30 pm to a 3:30 pm session closure.

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, the former Manila Stock Exchange started the computerization of its operations using the Stratus Trading System (STS) with a company called Equicom. Later that year, on June 15, the former Makati Stock Exchange adopted the MakTrade trading system. Both systems were linked on March 25, 1994 to produce a One Price-One Market exchange. Two years later, 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.

Indices and components

The PSE has eight constituent indices:

• PSE All Shares Index (ALL)
• PSE Composite Index (PSEi)
• PSE Financials Index (FIN)
• PSE Holding Firms Index (HDG)
• PSE Industrial Index (IND)
• PSE Mining and Oil Index (M-O)
• PSE Property Index (PRO)
• PSE Services Index (SVC)

The PSEi is the main index of the PSE, while the All Shares Index is the broader index of the exchange. The remaining six indices are sector indices based on a company's main source of revenue. Although listed in an index, companies are listed on the PSE under the First Board, Second Board or the Small and Medium Enterprises Board based on market capitalization.

As of December 31, 2010, the Philippine Stock Exchange had 253 listed companies with a total market capitalization of US$202 billion. There are also 184 trading participants registered at the PSE, of which 132 are active.

See also

• List of market opening times

External links

• Philippine Stock Exchange
• Philippine Stock Exchange at WN
• Philippine Stock Exchange Plaza - Ayala Tower One
• Philippine Stock Market | PSEi Updates