The Philippine Stock Exchange (PSE) is looking at a new system that will allow it to settle transactions not just in peso but in other currencies as well.
The new clearing and settlement platform is eyed to be operational in the first quarter of next year, and will allow the bourse to facilitate a T+2 trading cycle, according to Ramon Monzon, PSE president.
T+2 refers to the process of giving the acquiring side of a transaction additional two days to pay its share purchase in the stock market, normally reserved for high-frequency traders and high-net worth investors.
Speaking at an online briefing, Monzon said this is one of the measures being looked at to further improve trading in the stock market.
The PSE is set to unveil within the second half an analytics platform that will allow investors to analyze data on their own.
The PSE is also tweaking its online retail investors subscription to initial public offerings to allow online payment as well as the inclusion of other offerings like follow-on offerings and other securities like retail treasuries, Monzon said.
Monzon said the PSE is looking at an electronic know-your-client (KYC) platform that will facilitate online KYC for brokers and standardize processes among them.
Monzon meanwhile is confident that PSE can finally launch its short-selling system by the second half of the year. The system is expected to attract foreign funds back into the PSE.
Monzon also said the PSE is set to increase its sectoral classification “to comply more with global benchmarks,” developing two additional indices — big cap index and high dividend index — and a third one — Environmental Sustainable Governance (ESG) — set for launch by the first half of next year.
Earlier, the PSE unveiled a number of reforms aimed at improving the viability of the PSE as a venue to raise capital for businesses.
