PSE, NYSE Euronext sign cooperation pact

The Philippine Stock Exchange and the New York Stock Exchange Euronext have entered into a memorandum of understanding (MOU) to share information and explore new opportunities in trading system and technology, exchange traded products, market participant connectivity and market data management.

The MOU signing at the NYSE was witnessed by President Arroyo. It also covers the PSE’s intention to purchase new trading system technology from NYSE Euronext and its affiliates.

PSE chairman Jose Vitug said the MOU would bring closer together the world’s biggest stock market and Southeast Asia’s oldest bourse.

“We welcome this opportunity to partner with Mr. Vitug and his colleagues at the Philippine Stock Exchange,” said NYSE Euronext chief executive officer Duncan L. Niederauer.

“We are committed to the success of this alliance, which will benefit and create growth opportunities for both markets and their respective customers. This historic MOU will provide us a common base to explore together a whole new frontier of opportunities, from which we can re-energize our markets for future waves of growth,” Vitug said.

For his part, PSE president and chief executive officer Francis Ed. Lim said: “We in the PSE have very high hopes that our collaborative and cooperative understanding with the world’s leading stock market operator will help hasten the transformation of the PSE into a premier exchange.”

Lim said each possible area of mutual cooperation identified in the MOU will hopefully serve as guide in pursuing definitive agreements in the future. This represents the recognition of each party of the important role that the other will play in developing our respective stock markets.”

The MOU was drafted in the spirit that international cooperation between the two exchange companies will facilitate the development and efficient operation of all securities markets operated by the exchange groups.

NYSE Euronext is a holding company created by the combination of NYSE Group, Inc. and Euronext N.V. It provides a single market for cash products, including shares, bonds, exchange-traded funds (or trackers), investment funds, certificates, warrants and commodities.

NYSE Euronext also operates a globally distributed connectivity network, and provides commercial trading and information technology solutions for customers and other exchanges. In the United States, through NYSE Group, the company operates the New York Stock Exchange Inc. and NYSE Arca Inc. and in Europe, it operates five European-based exchanges that comprise Euronext: the Paris, Amsterdam, Brussels and Lisbon stock exchanges, as well as the Liffe derivatives markets in London, Paris, Amsterdam, Brussels and Lisbon.

As of end 2007, NYSE Euronext was home to over 3,600 listed issuers from 55 countries, including operating companies, closed-end funds and ETFs, representing an aggregate market capitalization of over $30 trillion.

Companies listed on its exchanges represented approximately 93 percent of the publicly-traded companies that constitute the Dow Jones Industrial Average, 85 percent of the stocks included in the S&P 500 Index and 76 percent of the companies comprising the Eurostoxx 50 Index.

NYSE Euronext offers issuers the ability to cross-list on its United States and European exchanges, and to trade and raise capital in both dollars and euros.