PSE ramps up PDS integration

The Philippine Stock Exchange (PSE) is ramping up efforts to integrate the Philippine Dealing System Holdings Corp. (PDS) as part of a broader strategy to create a more unified market infrastructure. PSE President and CEO Ramon Monzon announced that 13 systems and platforms have been identified for consolidation, with integration operations already underway.

The exchange is consolidating network and infrastructure while incorporating PDS requirements into ongoing technology upgrades across its own group. Cross-functional working groups have been established to explore shared services, including human resources and internal audit.

Monzon highlighted that the next phase of integration will focus on building a unified market infrastructure. Key initiatives include enhancing post-trade activities, expanding investor protection measures, and implementing unified risk management, compliance, strategic planning, budgeting, and performance monitoring frameworks across the PSE and PDS.

By 2027, the PSE and PDS aim to consolidate post-trade activities, including clearing and settlement, and allow fixed income assets as collateral for clearing members. Additional plans include developing new product initiatives using fixed income assets and expanding the coverage of the central depository to strengthen investor protection.

The PSE currently owns 94.6 percent of PDS. The acquisition aligns the Philippine capital market with global standards, where a single exchange structure exists for both equities and fixed income. This consolidation is expected to make the Philippine market more competitive regionally by integrating equities and fixed income markets within the same entity that manages exchange trading, clearing, and settlement.

The PSE has already integrated PDS into its financial statements, recognizing the Philippine Depository and Trust Corp. and the Philippine Dealing and Exchange Corp. as its subsidiaries.