Manila, Philippines - The Philippine Stock Exchange (PSE) said its current surveillance system detects and generates alerts in all instances of unusual price and volume movements.
“The Exchange has the appropriate systems in place and monitoring these activities is part of our day to day function to oversee both behavior of trading participants through our Market Regulation Division and activities of listed firms through our Issuer Regulation Division,” PSE president Hans B. Sicat said.
The PSE added that when alerts are generated by the system, its Market Surveillance Department under its Market Regulation Division conducts review procedures to further examine the alerts generated by the unusual price or volume movements. The review is in accordance with standard operating procedures and in compliance with the amended market regulation rules. Furthermore, the PSE said that any appropriate report on the alerts which are generated by the system will be completed in due time, pursuant to the standard operating procedures and the rules of the Market Surveillance Department that are applicable.
“The Exchange does not comment on specific issues or items of speculation as there is a defined process on how we deal with specific market participants and situations,” Sicat said.
In fact, to enhance and improve the surveillance process, the PSE formed the Capital Markets Integrity Corp. (CMIC), a subsidiary co-reporting directly to the Securities and Exchange Commission (SEC) which is responsible for the orderly conduct of the stock market and its trading participants and the surveillance of trading activities of listed firms. The SEC has yet to approve the self-regulatory organization (SRO) license of CMIC.
CMIC recently signed an agreement with the Korea Exchange for the acquisition and implementation of a surveillance system which will enhance the capability of CMIC to monitor stock trading activities and strengthen market integrity.