PSE top brass to meet brokers over BW stock trading anomaly

The two top officials of the Philippine Stock Exchange (PSE) will meet to discuss possible actions on the recent cases of cash settlement with the Securities and Exchange Commission (SEC) by market players on their involvement in the BW Resources Corp. trading anomaly.

PSE president Ernest Leung informed brokers and other trading participants in a circular that he and PSE chairman Vivian Yuchengco will meet the brokers on Tuesday to "discuss and assess the legitimacy of these citations and to consider possible remedial measures where appropriate."

Leung said a number of trading participants have expressed concern over the issue since they were sent letters by the SEC citing violations of rules in connection with their transactions on BW shares for which fines are being imposed.

Last week, the SEC dropped the administrative charges against four brokers and an individual involved in the price rigging case in BW after they offered a cash settlement, now allowed under the Securities Regulation Code.

Among those charged but who settled their cases were A.T. de Castro Securities Corp., PNB Securities, two small but unidentified brokers, and businessman Ramon Lee.

The SEC earlier recommended administrative sanctions against at least 30 brokerage firms and individuals allegedly involved in the BW case, and were assessed fines ranging from P10,000 to P1 million, including the threat of revoking their licenses.

Due to the degree of their participation, the brokers were slapped different penalties. A.T. de Castro offered to settle the case for P1 million, to be paid on a staggered basis; PNB Securities settled for P100,000; while Lee opted to pay P112,500.