Exchange launches online trading platform

The Philippine Stock Exchange has rolled out an online trading platform meant to expand the country’s thin domestic investor base using technology that stock brokers can use to trade equities “in a totally mobile environment.”

The new platform, called PSETradex, serves like a facilitator for a technology provider, giving broker-dealers the capability to offer an online platform to their clients at a much lower price than if they were to develop their own online trading IT solution.

“Trading participants can now sign up for the PSETradex which they can offer to their clients,” PSE president Hans Sicat said in a statement.

“We are excited about this new service which we believe will further expand the brokers’ reach to investors and boost activity in the stock market in a significant way.”

The PSE is asking Maybank ATR Kim Eng Securities to become one of the first brokerage firms to use PSETradex.

PSETradex offers a web-based trading management system that allows users to trade stocks, monitor their order status, manage their stock portfolio and gather relevant market information through their computers.  In addition, it can provide mobile wireless application for equity trading which operates on web-based mobile phones.  This means, investors who have registered with participating stockbrokers are enabled to trade in a mobile environment.

“The system is designed to let investors trade using their mobile phones and tablets,” Sicat said.

To date, less than 1 percent of the country’s close to 100 million population participate in the local stock market.  For those who invest in stocks, most trades are done via phone calls or physical interaction with stockbrokers or agents.

But the PSE noted that online trading has grown by 42 percent yearly in the past five years.

PSETradex seeks to attract  a “new breed” of investors, on top of those already trading through platforms offered by some brokerage houses.  The new platform was launched right after the Philippine sovereign was assigned an investment grade rating by global credit watcher Fitch Ratings.

To date, 10 to 15 trading participants, out of the 133 active brokerage houses, have their proprietary online trading platform. These include COL Financial, First Metro Securities, 2TradeAsia.Com, AB Capital Securities and BPI Securities.

The PSE has engaged the services of Malaysian securities trading solution N2N Connect Berhad for this online trading platform.  N2N has been involved in the information, communications and technology industry for more than 25 years.  It has expertise in developing innovative solutions for capital market clients.  N2N has expanded its business to Singapore, Saudi Arabia, Vietnam, Hong Kong, China and Indonesia.