Paperless trading at bourse today

Starting today (June 13), the Philippine Stock Exchange (PSE) will slowly rid itself of paper-based memos and circulars on the trading floor as it makes available an online disclosure system that can even be accessed through the Internet.

"In line with the Exchange’s efforts towards increased operational efficiency and market transparency, all listed company disclosures as well as other PSE announcements and memos will be made available to the trading participants and the public in electronic form," PSE executive vice president Jose Cervantes said.

He said the new bulletin system is an alternative way to have access to all the paper documents (circulars, memos and announcements) still being distributed on the trading floor.

These paper documents will be converted to electronic format and entered into the Exchange’s MakTrade computer system as soon as these have been prepared for release.

The system will be installed on all the trading floor terminals and can also be viewed at the new PSE website (www.pse.org.ph), allowing both the floor participants and off-site investors to go through all the relevant information being disclosed or submitted to the PSE.

Among these information are press releases, schedule of regular or special stockholders meetings, results of board elections, clarification/confirmation of news articles, explanation/reply to unusual price movements, major deals signed and other significant corporate developments.

These are on top of PSE circulars and memos to brokers, including the registration of new stockbrokers; the cessation/suspension of broker activities; change of personnel, office address, telephone numbers; as well as guidelines on scheduled initial public offerings (IPOs).

Cervantes said with the implementation of the electronic dissemination of corporate disclosures and announcements, the distribution of the traditional paper-based memos and circulars on the trading floor will be discontinued after two or three months.

The Exchange distributes all memos and circulars to all 137 active traders at the floor and its various departments including the press center, piling up a substantial amount of paper daily.