MANILA, Philippines — The Philippine Stock Exchange (PSE) is ramping up initiatives to integrate the Philippine Dealing System Holdings Corp. (PDS) in line with efforts to build a more unified market infrastructure.
“On the operational front, we have already identified 13 systems and platforms for consolidation and the integration of systems is well underway,” PSE president and CEO Ramon Monzon said.
Monzon said they are currently consolidating network and infrastructure while ensuring PDS requirements are incorporated into ongoing technology upgrades across the PSE group.
He said cross-functional working groups have likewise been established and opportunities for shared services in areas such as human resources and internal audit have been identified.
“Looking ahead, our next phase of integration is focused on building a more unified market infrastructure,” Monzon said.
He said key initiatives include enhancing post-trade activities, expanding investor protection measures, supporting the development of new products and implementing unified risk management, compliance, strategic planning, budgeting and performance monitoring frameworks across PSE and PDS.
Under the second phase of the integration roadmap targeted for 2027, the PSE and PDS are eyeing a single system for post-trade activities (clearing and settlement and depository), as well as allowing the use of fixed income assets as acceptable collateral for clearing members.
Also targeted in the second phase are the development and assessment of new product initiatives with fixed income as underlying instrument, as well as expansion of name on central depository coverage to enhance investor protection.
The exchange also intends to integrate enterprise-wide risk management, compliance and supervision frameworks, while also establishing unified strategic planning, budgeting and performance monitoring across PSE and PDS.
At present, the PSE beneficially owns 94.6 percent of PDS.
The PSE’s takeover of PDS forms part of its plan to align the Philippine capital market with other global markets, which have a single exchange structure for both fixed income and equities.
The PSE said the Philippine capital market would be more competitive than other markets in the region through the consolidation of the equities and fixed income markets, as well as the vertical integration of the depository under the same entity that operates exchange trading, clearing and settlement.
PSE has consolidated PDS in its financial statements after the latter became its majority-owned subsidiary in December 2024.
The Philippine Depository and Trust Corp. and the Philippine Dealing and Exchange Corp. are subsidiaries of PDS.