PSE eyes revisions in trading rules by Q2

MANILA, Philippines - The Philippine Stock Exchange (PSE) aims to install several enhancements in its trading rules before the second quarter of next year, a top official said.

“The target is to have the rules in place in time for the implementation of PSETrade XTS in May next year,” PSE president and chief executive officer Hans B. Sicat said.

The PSE said among the proposed changes would include enhancements to risk-related parameters pertaining to managing error accounts and instituting controls in preparation for the introduction of new order types such as market orders.

The country’s stock market operator said the revisions are seen to enhance risk management processes and also as a preparation for new order types that may be introduced after the adoption of the new trading platform PSETrade XTS.

“The preparations are progressing following our roll-out schedule and we remain confident on meeting our target launch date,” Sicat said.

The PSE is currently seeking public comments for its proposed revisions to its trading rules.

Once the comment period is completed, the PSE said it would consolidate any changes that may be made and would submit them to the Securities and Exchange Commission for regulatory approval.

The PSE, starting May next year, is set to roll out a new trading system developed by NASDAQ OMX, a global exchange technology solutions provider.

Sicat said the PSE’s migration to the NASDAQ X-Stream trading engine would give the company an opportunity to benchmark its rules against global practices.

“We are not introducing major changes considering the adjustments that the stakeholders will have to undertake as we move to PSETrade XTS. We believe, however, that we now have this chance to introduce some items in line with our overall goal of adopting best practices in trading,” he said.

PSE’s net income in the first nine months of the year rose 28.1 percent year-on-year to P718.96 million while operating revenues for the January to September period grew by 18.7 percent at P1.19 billion.