PSE unveils new online stock trading service

MANILA, Philippines - Shopping for shares of listed companies in the stock market is now as easy as a mouse click as the Philippine Stock Exchange has unveiled a new service that will encourage brokerage houses to offer online trading services to the investing public.

The service, dubbed Online Service Bureau (OSB), is currently in the process of soliciting proposals from local and international solution providers. It aims to take advantage of the meteoric rise in popularity of the Internet and continuous growth of online transactions by allowing investors to place their orders to brokers online.

Traditionally, equities trading in the Philippines has been done through brokers, in person or over the phone.

“The PSE is at the forefront of improving trading infrastructure and services to our trading participants. With the implementation of extended trading in the fourth quarter, we hope that this new service will further expand brokers’ reach to investors and boost activity in the stock market in a significant way,” PSE president and chief executive officer Hans B. Sicat said.

Online trades accounted for 16.3 percent of the total number of stock transactions in 2010, as online accounts of investors grew 25.8 percent to 35,559 from the previous 28,261.

Sicat said the OSB also proposes to provide cost efficient services for both PSE and trading participants as well as boost market activity without the need for expensive investments in technology.

With the introduction of the OSB, an investor himself can enter and monitor his own order online. The investor can monitor orders using a number of channels such as mobile phones, tablet computers and laptops.

“This offered solution should enable PSE to provide reliable and responsive services to trading participants and their clients. Our trading participants need not worry about setting up the technology infrastructure and manpower resource to support such service for their clients,” said Rachelle C. Blanch, vice-president and head of PSE’s Market Operations Division.

Among the brokerage houses providing online trading are Citiseconline, BPI Securities, First Metro Securities, Accord Capital, F.Yap Securities, RCBC Securities, Wealth Securities and AB Capital Securities.

The PSE is extending trading hours beginning next month to improve and align the local market with other Southeast Asian exchanges it will be linked with in 2012.

 Stock trading in the country is one of the shortest in the world with trading lasting only two and a half hours, or from 9:30 a.m. until 12 noon.