The Philippine Stock Exchange (PSE) is set to launch its online trading facility this month.
Hans Sicat, PSE president and chief executive officer, said the start of operations of the Online Service Bureau (OSB) will coincide with “a major client launch.”
“The one that we’re going to launch will be a major player,” Sicat said, without elaborating.
The online trading facility will capitalize on the continuous growth of transactions by allowing investors to place their orders to brokers online. In the Philippines, the most common modes of stock trading are through phone calls or physical interaction with stockbrokers or agents.
With the introduction of the OSB, an investor can enter and monitor their order online. The investor can monitor orders using a number of channels such as mobile phones, tablet personal computers and laptops.
“It will basically create and help a lot of new retail accounts. Clearly, we’ll demonstrate the new normal in being part of the capital market environment,” Sicat said.
Online investor accounts grew by 48.4 percent to 52,750 in 2011, anchored on the double-digit annual growth in the online accounts of nearly all brokerages with such capabilities.
For 2013, the PSE is spending heavily to improve its IT infrastructure as the bourse seeks to upgrade engines for its clearinghouse, issuers and traders.
“I guess by the end of 2013, you’ll find an exchange that’s very much 21st century in terms of the IT foundations. The board is actually giving us the go ahead,” said Sicat.
In 2010, the PSE rolled out a new trading system developed by the New York Stock Exchange (NYSE) Technologies and designed to trade a wide range of cash, debt and derivative instruments as well as improve the capacity of the PSE to handle any future sharp increases in its value turnover
“The investment in New York Stock Exchange engine was so important because the volumes we have today, we could not do P10 billion per day if we had the old engine. In other words, part of the constraint was self-imposed,” Sicat said.
Last year, the PSEi posted a return of 33 percent to finish at 5,812.73 after breaking record levels 33 times to become one of the best performing indices in Asia Pacific, finishing behind Thailand’s 36.3 percent.