MANILA, Philippines - Trading was suspended at the local bourse yesterday in anticipation of the threat posed by Typhoon Ruby (international name: Hagupit).
The Philippine Stock Exchange (PSE), the operator of the country’s only stock market, postponed trading as well as clearing and settlement at the Securities Clearing Corp. of the Philippines (SCCP) “due to the suspension of clearing and settlement operations in the Philippine banking system.”
It was the third time the PSE suspended trading in 2014, with the first brought about by Typhoon Glenda (international name: Rammasun) last July 16 and Tropical Storm Mario (international name: Fung-wong) last Sept. 19.
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 Ruby, which is expected exit the Philippine area of responsibility Thursday morning, put several areas in the country including Metro Manila, under storm alert.