Sample Research on Philippine Stocks Exchange

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I. HISTORY

The Philippine Stock Exchange (PSE), also known as the Philippine stock exchange incorporated (PSEi) is the national stock exchange of the country, began 85 years ago, on August 8, 1927. It was created from the two stock exchange of the country which are the Manila Stock Exchange or MSE established on August 8, 1927 and Makati Stock Exchange or MkSE established on May 27, 1963. PSE, a member of World Federation of Exchanges or WFE is one of the oldest stock exchange in southeast Asia (1927 up to present).

Manila Stock Exchange is the first Stock Exchange in the Philippines and one of the oldest in the Far East founded by W. Eric Little, Gordon W. Mackay, John J. Russell, Frank W. Wakefield and W.P.G. Elliot – five Manila-based businessmen to stimulate business atmosphere through the increase in trading activity. On the other hand, Makati Stock Exchange was organized by five other businessmen namely Hermenegildo B. Reyes, Bernard Gaberman, Eduardo Ortigas, Aristeo Lat and Miguel Campos which started its operations on November 16, 1965 and was located in Makati, then emerging center for finance. Both stock exchange allied after 30 years since the birth of MkSE on December 23, 1992.      

 The idea to unite the two exchanges and have it managed by a professional group emerged and was attained when the Philippine Stock Exchange, Inc. was incorporated on July 14, 1992 that was agreed by the leaders of both bourses (MSE and MkSE) to further consolidate logistics and to hasten the development of a more efficient capital market.       

On March 4, 1994 the Securities and Exchange Commission granted the Philippine Stock Exchange, Inc. its license to operate as a securities exchange in the country stating that “a unified Stock Exchange is vital in developing a strong capital market and a sustainable economic growth.” It simultaneously cancelled the licenses of the MSE and the MKSE.

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, one year after the enactment of the Securities Regulation Code, the PSE was transformed from a non-profit, non-stock, member-governed organisation into a shareholder-based, revenue-earning corporation headed by a president and a board of directors. The PSE eventually listed its own shares on the exchange (traded under the ticker symbol PSE) by way of introduction on December 15, 2003.

II. INTRODUCTION

  

  The Philippine Stock Exchange is currently the only organized exchange in the Philippines licensed for trading stocks and warrants. Its primary goal is to ensure free and transparent stock market buying and selling. Its importance can also be seen in the light of the entire Asian market since Peso is an important currency traded on the foreign exchange market.

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 in 2005. The ODiSy provides a 24/7 online system access for the submission of all types of disclosures. Then, on July 26, 2010, the PSE launched its new trading system, PSEtrade, which replaced the MakTrade system which was acquired from the New York Stock Exchange. And on March 3, 2012, the PSE Composite hits 5,000 mark the highest record close.

PSE was cited as having the Most Admired Board of Directors by broadsheet Business Mirror in the recent Asia CEO Awards at the Newport Performing Arts Theatre, Resorts World Manila.

 The World Federation of Exchanges recognized the PSE as the world's top performing market in 2011 for rolling out a new trading system, extending trading hours, implementing multiple regulatory and governance enhancements and raising its international...
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