Stock exchange president quits

Barely six months on the job, Philippine Stock Exchange (PSE) president Cayetano Paderanga tendered his resignation during the board meeting yesterday.

His resignation will take effect once a replacement is named.

In a statement, the PSE said Paderanga was "recalled back to the UP School of Economics where he had been a member of the faculty for more than 20 years."

Paderanga, who served as the economic planning secretary of former President Corazon Aquino, was supposed to serve a two-year term as PSE president starting Jan. 1 this year.

The PSE said its board will go through the selection and election process for Paderanga’s replacement. He remains a director of the board, the PSE said.

Jose Aquino, head of the Securities and Exchange Commission’s Market and Exchanges Department, said the SEC respected Paderanga’s decision and would just wait for the PSE to name a new president.

"It’s their organization. There won’t be a problem as long as the new president meets the qualifications set forth under the Securities Regulation Code (SRC)," Aquino said.

Under the securities law, the PSE president should not be a stockbroker. If a stockbroker is being considered for the position, he should not be a practicing stockbroker two years prior to his appointment as president.

PSE sources, however, said Paderanga’s resignation was triggered by reports that certain parties did not like him and wanted him replaced by former banker Peter Favila.

Another source said the group of former PSE chairman Vivian Yuchengco had questioned his appointment, citing a conflict of interest in his appointment as he was still holding a concurrent position in the real estate arm of the state-owned Philippine National Oil Co. (PNOC).

Paderanga, who replaced former Philippine Deposit Insurance Corp. (PDIC) chairman Ernest Leung, vowed to help improve investors’ perception of the Philippines and continue implementing reforms in the local bourse.

He has committed to improve the infrastructure and processes at the PSE in light of new procedures introduced with the enactment of the anti-money laundering law and the emergence of new corporate governance rules all over the world.

He also promised to meet the deadline imposed by the SEC for the industry to comply with share ownership limitations under the SRC.