PSE takes a step closer to acquiring trade platform

The Philippine Stock Exchange Inc. (PSE) is moving forward with plans to acquire the country’s fixed-income trading platform as it forged an initial agreement with shareholders of Philippine Dealing Systems Holdings Corp. (PDS) late Monday.

In a statement, the PSE said it executed a memorandum of agreement with the Bankers Association of the Philippines (BAP), and another with Singapore Exchange (SGX), in an effort to consolidate operations of the fixed income exchange and securities depository. The BAP, through member banks, and SGX own approximately 45 percent of PDS, while the PSE owns 20 percent, the statement showed.

“The general structure in most markets is, both fixed income and equity securities trading are operated under one group or entity. This has not been the case in the Philippines. We now have this opportunity to review the optimal structure for our market so we can further deepen our capital markets and make it even more attractive to investors,” PSE chair Jose T. Pardo said in a statement.