The Philippine Stock Exchange (PSE) is planning to introduce a new service to Trading Participants (TPs) that will promote online trading.
Dubbed as the Online Service Bureau (OSB), this project aims to offer online trading services for TPs that can in turn, be offered to investors. The project is currently in the process of soliciting proposals from local and international solution providers.
In the Philippines, the most common modes of stock trading are via phone calls or physical interaction with stockbrokers or agents. The OSB will take advantage of the dawn of internet and the continuous growth of online transactions by allowing investors to place their orders to brokers online.
"The PSE is at the forefront of improving trading infrastructure and services to our trading participants. With the implementation of extended trading in the fourth quarter, we hope that this new service will further expand brokers' reach to investors and boost activity in the stock market in a significant way," PSE President and Chief Executive Officer Hans B. Sicat said.
In 2010, online accounts of investors registered a 25.8 percent growth to 35,559 from the previous 28,261.Online trades represented 16.3 percent of the total number of stock market transactions in 2010.
The OSB also proposes to provide cost efficient services for both PSE and TPs. The implementation of the OSB will provide an opportunity for TPs to offer services to their clients and potentially increase market activity without the need for expensive investments in technology. With the introduction of the OSB, an investor himself can enter and monitor his own order online. The investor can monitor orders using a number of channels such as mobile phones, tablet personal computers and laptops.
"This offered solution should enable PSE to provide reliable and responsive services to trading participants and their clients. Our TPs need not worry about setting up the technology infrastructure and manpower resource to support such service for their clients," Rachelle C. Blanch, VP & Head of PSE's Market Operations Dns Division said.