Some stockbrokers are up in arms as FlexTrade, the front-end technology provider of the Philippine Stock Exchange (PSE), has announced a hefty increase in the fees charged per terminal, citing adjustments to its program with the shift from Internet Explorer (which will be retired by Microsoft) to the Chrome web browser.
As early as August last year, the PSE conducted a survey on which brokerage houses wanted to continue with FlexTrade at a price of P8,000 per terminal monthly, up from the old price of P2,000.
At that time, about 102 or more than three-fourths of brokers signified they were willing to continue dealing with FlexTrade, whose five-year contract will expire by the end of this year. For those opposed to this, the PSE advised them to consider other vendors.
FlexTrade’s quote has since then increased to P10,000 to P11,000 per terminal—rather costly for the small brokerage firms—which use multiple terminals for day-to-day operations.
Some say that FlexTrade’s upgrade indeed requires a huge investment and is a bitter pill to swallow in the midst of all the cybersecurity threats. In the past, FlexTrade was able to hold off price increases due to the big volume of business from BDO Securities, which has since then developed its own system.
Since signing a new contract with FlexTrade means a three-year lock-up period, some brokers believe that the PSE, as the customer, should take a tougher negotiating stance on their behalf to cushion the price increase, or bid out the contract and seek out other more cost-efficient vendors.
The PSE is also developing its own front-end system through its tech subsidiary Premier Software Enterprise, but there are concerns that it won’t be ready by the time FlexTrade’s contract expires.
As of press time, we have yet to hear from PSE on what its next course of action will be to address these concerns. —Doris Dumlao-Abadilla
The P2-M challenge
Nikki Coseteng hardly makes official statements these days, but the feisty former senator did so last week when she came out swinging against Transportation Secretary Arthur Tugade, blaming him for the current public transportation mess hounding harried commuters.
Coseteng, who once chaired the Senate committee on public services, said during a recent Pandesal Forum that Tugade and other officials of the Department of Transportation were “oblivious” to the repercussions of their “erratic” policies that are adversely affecting the riding public.
She was particularly incensed by the limited operations of provincial buses, which remain unable to go through Edsa and use their Metro Manila terminals because of the policy requiring them to use remote central bus terminals with very little connectivity to the city centers.
Coseteng even challenged Tugade to a P2-million bet to take daily public transport for 30 days to determine the magnitude and gravity of public transportation woes.
She also alleged during the forum that a number of unscrupulous law enforcers had been flagging down legitimate provincial buses along Mindanao Ave. and imposing an “unjust fine of P1 million per bus.”
Coseteng thus echoed the call to let legitimate buses back on Edsa, to better serve the public and at the same time get rid of illegal or colorum vehicles that have sprung up to service inconvenienced commuters.
Will Tugade take up the P2-million challenge? We shall soon find out.
—Tina Arceo-Dumlao
Toyota PH is a ‘trusted trader’
Leading car manufacturer Toyota Motor Philippines Corp. now belongs to an elite group of traders whose shipments can pass swiftly through customs for being a “trusted” firm.
Customs Deputy Commissioner Edward James Dy Buco announced on Feb. 9 that the Bureau of Customs (BOC) granted Toyota Philippines accreditation as a Level 1 authorized economic operator (AEO).
The BOC defined an AEO as accredited importers, exporters, customs brokers, forwarders, freight forwarders and transport providers that adhered to global standards set by the World Customs Organization and the World Trade Organization. AEOs also complied with the Customs Modernization and Tariff Act.
What does this mean for Toyota Philippines? For one, it “shall not be required to renew its membership under any customs accreditation system in lieu of the annual renewal of accreditation,” Dy Buco said in a memo.
Also, if Toyota manages its trade documents like bills of lading and invoices “satisfactorily,” the BOC may allow these documents to be used to self-assess the company’s duty and tax liabilities as well as comply with other customs requirements, to save some time (plus less red tape).
Third, a dedicated help desk will assist Toyota Philippines if it has a customs-related concern—it’s like red-carpet treatment from the BOC!
Most importantly, AEOs like Toyota will be publicly recognized and promoted by the BOC as among its trusted trade partners.
AEOs can move up across three levels of membership if the BOC’s review showed a record of complying to the criteria and standards set forth by the country’s second biggest revenue agency.
The BOC’s AEO program was piloted in 2017 and activated in 2020—at the onset of the COVID-19 pandemic—to promote trade facilitation while providing seamless movement of goods across borders to its trusted partners.
—Ben O. de Vera INQ
Email us at BizBuzz@inquirer.com.ph
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