Philippine stock market

The Philippine Stock Market: introduction

The Philippine stock market is centred on two major stock exchanges: the Philippine Stock Exchange (PSE) and the Philippine Stock Exchange (PDEx).

The Philippine Stock Exchange, known as Pamilihang Sapi ng Pilipinas in the Philippines, is the primary stock exchange in the country, and also one of the biggest stock exchanges in Southeast Asia. Opened as early as 1927, the Philippine Stock Exchange is also the longest operating stock exchange in Southeast Asia. This part of the Philippine stock market is today equipped with two trading floors: one located at its headquarters in Pasig City and one in the Central Business District of Makati City. 

The Philippine Dealing Exchange (PDEx) is not as big as the Philippine Stock Exchange and is focused on providing an electronic platform for trading, clearing and settlement, and depository and custodianship of fixed income securities and its derivatives. The Philippine Dealing Exchange spans of a multitude of sectors and in the forefront of the exchange you will find the Bankers Association of the Philippines (BAP).

The Philippine Stock Market: the Philippine Stock Exchange

The Philippine stock market and the Philippine Stock Exchange can trace its history back to two stock exchanges, the Manila Stock Exchange (MSE) which was established in 1927 and the Makati Stock Exchange (MkSE) which was founded in 1963. The Manila Stock Exchange and the Makati Stock Exchange was kept separated until 1992, despite trading the same stocks of the same companies. December 23, 1992, is a very important date in the history of the Philippine stock market because this is the day when MSE and MkSE merged to form the Philippine Stock Exchange. Six years later, the Philippine Stock Exchange was granted a “Self-Regulatory Organization" (SRO) status by the Philippine Securities and Exchange Commission. Thanks to this status, the PSE can implement its own policies and decide to punish erring stock brokers, traders and companies.

The Philipine Stock Market: the Philippine Dealing Exchange

In the Philippines, a series of market reforms has been carried by the financial markets stakeholders with the support of the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). The Philippine Dealing Exchange is a part of this change; a multi-sectoral venture headed by the Bankers Association of the Philippines (BAP). In 2004, the PDEx received its formal license from the SEC and became a formally recognized Exchange for the Philippine stock market. 

The Philippine Dealing Exchange provide the Philippine stock market with financial market infrastructure, including an electronic platform that is used for trading, clearing and settlement, and depository and custodianship of fixed income securities and its derivatives. Trading and other activates on this part of the Philippine stock market is implemented through the Philippine Dealing System Holdings Corp. and its subsidiaries. (The subsidiaries are named the Philippine Securities Settlement Corp. (PSSC), the Philippine Dealing & Exchange Corp. (PDEx) and the Philippine Depository & Trust Corp. (PDTC). They are collectively referred to as the PDS Group.)

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