PSE

PSE - Philippine Stock Exchange (PSE)

About the Philippine Stock Exchange :

The Philippine Stock exchange is the only existing stock exchange in the Philippines and is one of the largest in Southeast Asia. The PSE Composite Index (made up of 30 stocks) is the key indicator of share price movement in the market six sub indices: Financials Index, the Industrial Index, the Holding Firms index, the Property Indez, the Services Index, and the Mining & Oil Index.

The PSE is composed of two trading floors: one in Makati City; the other in Pasig City. Despite this, it is still capable of achieving one stock price and one Market Exchange through the MakTrade system. This single order book system warrants that a customer's order is matched with the best bid/offer, irrespective of which floor it was placed through. MakTrade facilitates the trading of securities through a broker to broker market with automatic order, trade routing, and confirmation.

The stock exchange corporation is overseen by a Board of Directors. It consists of 15 members elected annually by stockholders. Additionally, at least 51% of the members must always remain non-brokers as set out by the Securities Regulation Code. The remaining Board members are broker-directors who represent brokerage firms. The management of the Exchange is composed of the President/CEO and a few other professional managers who ensure that the policies and resolutions of the Board are carried out. They are also responsible for the daily activities and operations of the Exchange and that the public's investments and transactions are protected.

PSE - History of the Philippine Stock Exchange :

The current Philippine Stock Exchange is a conjunction of the Manila Stock Exchange (1927) and the Makati Stock Exchange (1963). The Manila Stock Exchange, when in existence, was the first exchange in Manila and the oldest in the Far East. Despite having existed separately for nearly three decades, the two bourses unified in 1992 under President Fidel Ramos. Unification was deemed appropriate because the two exchanges essentially traded the same listings. Ramos also aimed for a more efficient capital market. In 1994, its operations were in full swing with two trading floors - one in Pasig City; the other in Makati City.

On January 4 1993, the PSE incorporated the Stratus Trading System - a computerized approach for their operations. Six months later, on June 15, they also adopted the MakTrade trading system. Although the two systems were linked on March 25 1994 to allow for the same opening and closing prices, it was not until November 13 1995 that the systems were unified under the Unified Trading System - operating under the MakTrade. In 1998 the Philippine Securities and Exchange Commission named the PSE a self regulating organization, which allowed it to implement its own policies and regulations. By 2001, the PSE had formed into a stock-shareholder based organisation by taking the shape of a profit earning corporation. It also began trading bonds.

By 2003, in an effort to be more publicly held, the exchange only allowed shares to be listed through an introduction, rather than an initial public offering. Thus, in 2004 the PSE sold 6,077,505 shares of its un-issued capital to five investors: PLDT Beneficial Trust Fund, SMC Retirement Fund, Government Service Insurance System, Kim Eng Investment Ltd. and KE Strategic Pte Ltd.