PSE investments in technology reach nearly P2.9 billion
The Philippine Stock Exchange (PSE) has outlined nearly P2.9 billion worth of technology investments as it upgrades key systems supporting trading, clearing, disclosures and market surveillance.
Presented during the PSE’s STAR Investor Day earlier this week, the seven projects have a combined indicative value of about P2.845 billion.
“Our mission is to make sure that our exchange remains up to date in terms of its platforms and provides more products for foreign investors to invest in,” PSE president and CEO Ramon Monzon said.
Trading engine
The biggest project is a new trading engine worth about P940 million, followed by an P890-million clearing system and a new central depository system for Philippine Depository & Trust Corp. valued at roughly P450 million.
The PSE also placed the cost of its new disclosure platform using XBRL format at about P260 million.
A new surveillance system for Capital Markets Integrity Corp. is estimated at P150 million.
Back-office upgrades and artificial intelligence (AI) initiatives are valued at about P80 million and P75 million, respectively.
Investor access
The technology push comes as the PSE works to broaden investor access and integrate the operations of the Philippine Dealing System Holdings Corp. (PDS).
Its “One Share, One Lot” initiative, which would reduce the board lot table and allow investors to buy single lots based on a stock’s market price, is targeted for implementation in the fourth quarter alongside the new trading engine.
Regarding AI, the exchange is conducting a data strategy and infrastructure assessment aimed at developing a modern data architecture and strengthening data governance.
The modernization drive also supports PSE’s integration with PDS. The exchange has identified 13 systems and platforms for consolidation and is working on a network and infrastructure consolidation roadmap.
By 2027, PSE is targeting a single system for post-trade activities covering clearing, settlement and depository operations.
New products
It is also assessing new products using fixed income as an underlying instrument, including exchange-traded funds and derivatives.
“The best way to deepen the market really is to have more products,” Monzon said.
The PSE had total assets of P9.01 billion as of end-June, up 8.1 percent from a year earlier.
It also reported P3.25 billion in working capital and a current ratio of 2.40 times.
The exchange’s net income rose 19.8 percent to P608.38 million in the first half, while operating revenues grew 9.4 percent to P1.44 billion.
