BIZ BUZZ: Faster settlement for PSE trades
The Philippine Stock Exchange (PSE) is gearing up for the faster settlement of trades, from the usual three days to two days starting Aug. 24.
This means stock payments and payouts will be settled within two days, aligning the Philippines with other large markets.
The shift comes after the PSE migrated its clearing and settlement system to the Millennium Post Trade solution last March. This is provided by the technology subsidiary of the London Stock Exchange Group.
This will also cut risks for the parties involved since a faster settlement means a lower chance of default (hard to imagine now that the settlement period used to be “T plus four” in the 1990s). This is good for the exchange, especially when brisk market activity returns, but it also means more work for their backroom operations, a stock broker said.
Markets such as the United States adopted the two-day settlement cycle six years ago.
Earlier this year, the US Securities and Exchange Commission said it plans to slash the settlement period by half to just one day to further cut the kind of risks that emerged during the frenzied GameStop trading fiasco in 2021.
Article continues after this advertisement—Miguel R. Camus
Beware of unofficial Marshall posts
If you’re tempted to get those supposedly heavily discounted Marshall audio products being peddled on social media, please don’t give in, warns Digits Trading Corp., the authorized distributor of Marshall headphones and speakers in the Philippines.
Article continues after this advertisementCharles Paw, president and CEO of Digits Trading, tells Biz Buzz that these pages showing Marshall logos and products are “fake accounts” thus should not be patronized.
“These scammers are stealing our artworks to use as their own, making them seem more legitimate. We have released warnings about this matter together with the official sites of Beyond the Box and Digital Walker and we encourage our customers to only interact and transact with these accounts,” says Paw, who also called on customers to report these fake sites so they can be dealt with.
A number of customers, however, have already been victimized by these fraudulent stores that, after receiving payment from the customers, deliver either subpar quality products or, worse, nothing at all.
And because they thought they were transacting with Digits Trading, it received a lot of angry complaints thus the campaign for customers to protect their money and only transact with authorized Marshall stores and resellers.
Indeed, the adage still applies, if something sounds too good to be true, then it probably is.
