PSE’s securities clearing arm migrates to new system
MANILA -The securities clearing arm of the Philippine Stock Exchange completed its migration to a system, promising enhanced settlement capabilities.
The Securities Clearing Corporation of the Philippines (SCCP), a wholly-owned subsidiary of the PSE, transitioned to its clearing and settlement system to the Millennium Post Trade solution last March 27.
SCCP is the company responsible for the settlement of trades, including the transfer of money and stocks between buyers and sellers.
“We are pleased with the smooth migration to the new clearing and settlement system and the outcome of the first week of handling post trade operations using the said system,” PSE president and CEO Ramon S. Monzon said in a statement.
The Millennium Clearing and Millennium Risk products are provided by LSEG Technology, a subsidiary of the London Stock Exchange Group, the bourse said.
“The adoption of LSEG’s Millennium technology enhances the operational efficiencies of our clearinghouse, ensuring improved services to the clearing members of SCCP,” Monzon added.
According to the PSE, the new clearing and settlement system can accommodate multi-currency assets and is capable of settlement of multiple trade dates in a single settlement date.
“The post trade infrastructure uses ISO industry messaging standard and provides its users with comprehensive collateral management information,” the PSE said.
Moreover, the system was connected to the PSE’s trading engine. This will make “real time marking to market possible in the future.”
“With this technology, we are gearing up to update our settlement cycle from the current T+3 to T+2,” Monzon said.
Prior to the roll out of the new system, SCCP conducted several training and industry-wide testing sessions with its clearing members, settlement banks, the Philippine Depository & Trust Corp. and the PSE. SCCP is now one of over 25 financial market infrastructure and financial services firms that use LSEG Technology’s trading and post trade products, the statement showed.
