PDEx, Reuters to vie for right to operate forex trading system

MANILA, Philippines—The operator of the country’s bond exchange and an international news and data firm will bid jointly for the right to develop and operate a foreign exchange trading platform for the local banking system.

In a joint press statement, Philippine Dealing System Holdings Corp. (PDS Group) and Thomson Reuters said they had “entered into a strategic agreement to jointly deliver enhanced products and services to members of the PDS foreign exchange (FX) and fixed income trading communities in the Philippines.”

Both firms are already exclusive partners in providing data regarding fixed-income securities transactions to market participants.

At present, all financial institutions that want access to real-time information about trades and prices on the local bond market must subscribe to the Thomson Reuters system.

This exclusive relationship was forged more than five years ago.

“Our partnership with the PDS Group and our planned launch of our matching and trade reporting platforms in the Philippines underscore our long standing and ongoing commitment to the development of the Philippine capital markets and our philosophy of working with registered markets,” said Thomson Reuters’ managing director for Singapore Edward Hadded.

“By using our global capabilities, and enhancing them for the local market, we will continue to invest in the Philippines as the market develops,” he added.

The PDS Group now operates the US dollar-peso FX spot trading system for members of the Bankers Association of the Philippines (BAP), as well as settlement and transfer systems. Thomson Reuters, on the other hand, provides foreign exchange swap and forward trading systems for BAP-member banks.

“With a shared vision of operating robust, integrated systems from trading through to clearing and settlement as the foundation of various registered markets, PDS joins hands with Thomson Reuters to develop and deliver more products and services for the Philippine financial community members and stakeholders, PDS Group president and CEO Vicente Castillo said.