Achico, Christian A.

Financial Markets
AC - 203 MWF

The Philippine Stock Exchange Inc.- Finanacial market

The ​Philippine Stock Exchange, Inc. (PSE or Exchange)​ i​ s a private non-profit and non-stock
organization created to provide and maintain a fair, efficient, transparent and orderly market for
the purchase and sale of securities such as stocks, warrants, bonds, options and others.
The ​PSE b​ rings together companies which aim to raise capital through the issue of new
securities. Through the listing of their shares in the stock exchange, companies can have easier
access to funds.
Philippine Stock Exchange Inc. is a self-regulatory organization that provides a fair, efficient,
transparent and orderly market for the buying and selling of securities.
The Philippine Stock Exchange, Inc. is a stock corporation. The Company's revenues are
primarily derived from listing-related fees. The Company charges listing fees for initial public
offerings and additional listings, and annual listing maintenance. The Company's other sources
of revenue are membership, transaction, data feed, and miscellaneous fees, such as service fees.
The Company's subsidiaries are Securities Clearing Corporation of the Philippines (SCCP),
which is organized as a clearance and settlement agency for SCCP-eligible trades executed
through the facilities of the Company, and Capital Markets Integrity Corporation, which
functions as the independent audit, surveillance and compliance unit of the Company. SCCP is
responsible for synchronization of the settlement of funds for transactions of clearing members
and the transfer of securities, and performance of risk management and monitoring activities to
ensure settlement, among others

Stock Market
Definition​: It is a place where shares of pubic listed companies are traded. The primary market is
where companies float shares to the general public in an initial public offering (IPO) to raise
capital.
Description​: Once new securities have been sold in the primary market, they are traded in the
secondary market—where one investor buys shares from another investor at the prevailing
market price or at whatever price both the buyer and seller agree upon. The secondary market or
the stock exchanges are regulated by the regulatory authority. In India, the secondary and
primary markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock
may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the
stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange and
the National Stock Exchange.
History

On February 3, 1936, the Securities and Exchange Commission announced that it had
"relinquished control of the Manila Stock Exchange."​[5]

The Philippine Stock Exchange was formed on December 23, 1992 from the merger of the
Manila Stock Exchange (MSE) (established on August 12, 1927, based on Muelle de la
Industria, ​Binondo​, ​Manila​) and the ​Makati Stock Exchange (MkSE) (established on May 15,
1963, based in the ​Makati Central Business District​, within ​Ayala Tower One​). Both exchanges
traded the same stocks of the same companies.

In June 1998, the ​Securities and Exchange Commission (SEC) granted the PSE a
"Self-Regulatory Organization" (SRO) status, which meant that the bourse can implement its
own rules and establish penalties on erring trading participants (TPs) and listed companies.

In 2001, the PSE was transformed from a non-profit, non-stock, member-governed organization
into a shareholder-based, revenue-earning corporation headed by a president and a board of
directors and on December 15, 2003 listed its own shares on the exchange (traded under the
ticker symbol PSE).
The Philippine Stock Exchange is currently the only organized exchange in the Philippines
licensed for trading stocks and warrants
On January 4, 1993, the former Manila Stock Exchange started the computerization of its
operations using the Stratus Trading System (STS) with a company called Equicom. On June 15,
the former Makati Stock Exchange adopted the MakTrade trading system. Both systems were
linked on March 25, 1994 to produce a One Price-One Market exchange. Two years later, on
November 13, 1995, the implementation of the Unified Trading System (UTS) allowed the use
of a single-order-book system on a MakTrade software where all the orders are posted and
matched in one computer.

In October 2004, the Securities Clearing Corporation of the Philippines (SCCP), a clearing and
settlement agency for depository eligible trades, became a wholly owned subsidiary of the PSE.
The SCCP acts as the settlement coordinator and risk manager for broker transactions as well as
administrator of the trade guaranty fund.

In 2005, the PSE adopted an online daily disclosure system (ODiSy) to improve the transparency
of listed companies and ensure full, fair, timely and accurate disclosure of material information
from all listed companies. The OdiSy provides a 24/7 online system access for the submission of
all types of disclosures.

In 2016, The Marquee Awards of Alpha Southeast Asia magazine recognized PSE as the Best
Stock Market in Southeast Asia for the year 2015. The Alpha Southeast Asia, Named PSE Again
as the Best Stock Market in Southeast Asia in 2017, for 4 Times in 5 Years.

In 2019, The PSE has introduced a new index that will help track the overall returns of the main
index, The Total Return Index (PSEi TRI), as part of the efforts to create a broader investor base
for the market.

CITATION

The Economic Times. (2019). What is Stock Market? Definition of Stock Market, Stock Market
Meaning - The Economic Times. [online] Available at:
https://m.economictimes.com/definition/stock-market [Accessed 2 Sep. 2019].

Reuters, T. (2019). Philippine Stock Exchange Inc (PSE.PS) Quote | Reuters. [online] U.S.
Available at: https://mobile.reuters.com/finance/stocks/overview/PSE.PS [Accessed 2 Sep.
2019​].
“Pastrana, David. "Philippine Stock Exchange BGC: A Brand New Home for Stock Trading".
http://kmcmaggroup.com. KMC MAG Group. Retrieved October 23, 2014.

www.pse.com.ph
http://www.pse.com.ph/corporate/home.htmlhttp://www.pse.com.ph/corporate/home.html
JSTOR​ ​(August 2012)

https://www.jstor.org/action/doBasicSearch?Query=%22Philippine+Stock+Exchange%22&acc=
on&wc=on

THE PHILIPPINES STOCK EXCHANGE INC.

Financial Markets
Achico, Christian A. BSA - AC 203