PSE forges mutual tieup with Korean bourse

MANILA, Philippines - The Philippine Stock Exchange (PSE) has inked a memorandum of understanding with Korea Exchange Inc. (KRX) for mutual cooperation and sharing of information between the two bourses.

Both exchanges agreed to share information in co-developing new markets and products as well as in expanding existing markets.

In addition, the PSE and KRX agreed to improve information technology infrastructure to promote and strengthen the development of their respective financial markets. KRX, a consolidation of three of Korea’s domestic markets in 2005, manages and operates businesses relating to securities and futures trading in Korea.

As of 2008, its equity markets Kospi and the tech-heavy Kosdaq markets had a total of 764 and 1,037 listed firms, respectively.

“This MOU signifies an important step in enhancing cooperation between the PSE and KRX.  This should enable both our exchanges to capture emerging opportunities in Asia and to strengthen and develop our respective financial markets,” said PSE president Francis Lim.

“We believe that this MOU paves the way for our exchanges to grow together as we strive to elevate our markets to new heights. We also hope to derive wisdom from the KRX’s extensive experience in developing sophisticated products, being a global leader in the derivatives market,” he added.

To further expand its presence in the region and boost market liquidity, the PSE signed an MOU in February this year to create a trading linkage among ASEAN countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

Among ASEAN bourses that teamed up with the PSE to setup the electronic linkage are Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET).

This ASEAN electronic link is expected to be launched this year, beginning with BM and set followed by SGX and the PSE.

In 2008, the PSE inked an MOU with the New York Stock Exchange Euronext to jointly develop new exchange-traded products, enhance market participant connectivity and improve data management.