Thorny issues hound PSE, PDEX merger
MANILA, Philippines - The Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) are now threshing out thorny issues on the proposed merger of the stock exchange and the Philippine Dealing and Exchange Corp. (PDEX).
“The SEC is carefully studying PSE’s proposed acquisition of PDEX considering that the size of the movements in capital is very significant in the fixed income market. In 2015, value turn over at PDEX amounted to P3.42 trillion. At PSE, in 2015, value turn over totalled P4.3 trillion,” the SEC said.
The SEC is seeking clarification on various aspects of the PSE’s latest submission dated Jan. 26.
For instance, on the trading platforms, the SEC said there are
exchange and over-the-counter OTC-like transactions as well as order-driven and quote driven transactions.
The SEC wants to know if the existing platforms would be retained or if there would be a convergence or integration of the two platforms.
On the delivery-versus payment schemes, the SEC is studying the plan of the PSE on PDEX cleaning and settlement model.
“The PSE utilizes central counterparts and multi-lateral netting while PDEX adopts bilateral or trade for trade settlement. What is the plan of PSE on PDEX cleaning and settlement model?,” the SEC said.
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