PSE hunts for new trading platform

The Philippine Stock Exchange (PSE) is on the lookout for another trading platform to replace its existing system within the next few years.

PSE Governor Ramon T. Garcia told reporters that the PSE has begun drawing up its specific requirements and accepting proposals from both local and foreign solution providers.

The PSE has been using Mactrade as its trading platform but according to Garcia, the company that owns the platform will be closing shop by 2004.

"This means that we would have to operate Mactrade without the necessary support services," Garcia said. "We have to acquire a new settlement and trading platform with the support services attached and one that would be more suited to our present requirements."

Garcia declined to disclose how much the PSE was setting aside for this acquisition but said the exchange has started entertaining inquiries from interested parties.

According to Garcia, the new system would have to take into account various

PSE hunts… From Page 21

changes in the PSE’s operations, including the possible extension of trading hours as well as the increasingly scripless trading of stocks and other instruments at the exchange.

Garcia said the PSE has not reached a decision on how to implement the extension but said it should be implemented slowly.

"My personal view is that the first extension should be done slowly, say until 3 p.m. and it should be voluntary," Garcia said.

According to him, trading after lunch should be done off-site to cut down on overhead costs.

Garcia said the resistance against extending trading hours stemmed from fears that overhead costs would balloon at a time when the market could little afford additional costs.

Allowing brokers to conduct trading from their offices, he said, would cut down on the cost of actually operating the trading floor after lunch.

"Brokers should also be given time to adjust, that’s why we need to do it on a voluntary basis," he said. "By the time it is required, brokers would have already developed the capability to trade from their offices."

Garcia said the suggestion of extending trading hours would appeal unnecessary at a time when the market is in a deep slump, but trends could be changing.

"Now that the volume is going up slowly, maybe the resistance would be a lot less," he said. "Even then, it should be done slowly, we can’t go from three hours straight to 24 hours."