MANILA, Philippines - Powerful winds and heavy rains brought by Typhoon Glenda (international name: Rammasun) yesterday resulted in the suspension of trading in the Philippine Stock Exchange (PSE), the first suspension for 2014 in what has become a yearly event during the monsoon season.
In a public advisory, the operator of the country’s only bourse said there “will be no trading at the local equity market, and clearing and settlement operations at the Securities Clearing Corp. Philippines (SCCP) due to the suspension of clearing and settlement operations in the Philippine banking system.”
SCCP is a private firm organized primarily as a clearance and settlement agency for depository eligible trades executed in the local stock exchange.
As a securities depository, the company can hold securities for all financial institutions in the local bourse prior to the certificates being transferred to the owner or to another party. It can also process the settlement of share transactions.
Typhoon Glenda, one of the strongest thus far this year, passed by Metro Manila yesterday before heading towards the west Philippine sea.
The last time the PSE suspended trading was on Aug. 19-20, 2013 as tropical storm Maring and the southwest monsoon dumped heavy rains over Mega Manila, disrupting several banking operations.