MANILA, Philippines – The Philippine Stock Exchange (PSE) plans to revise its rules to allow trading even on days when the clearing activities of the Bangko Sentral ng Pilipinas (BSP) or Philippine Clearing House Corporation (PCHC) are suspended.
The local bourse issued the proposed amendment after the suspension of trading on Monday, October 16, which was due to Malacañang's decision to call off classes and government work because of a nationwide transport strike. (READ: Transport strike shuts Philippine financial markets)
Under its current trading rules, the PSE trades every day except for Saturdays, Sundays, legal holidays, special holidays, days when the BSP is closed, and suspension days declared by the Securities and Exchange Commission (SEC) or the local bourse.
The PSE uses the central bank's Philippine Payments and Settlements System (PhilPaSS) to facilitate cash payments for cash purchases. This means the PSE needs PhilPaSS to allow settlements to be completed.
"The exchange recognizes the global market dynamics in operating the country's sole stock market. As such, it is important for the exchange to have the ability to allow investors to trade in the market and minimize situations where trading is suspended unexpectedly," the local bourse said on Tuesday, October 17.
"However, the exchange also recognizes that the declaration of non-working days for government offices is a prerogative vested on government alone, even if such decision affects the ability of the PSE to open the market for its investors," it added.
In a memorandum, the PSE sought comments from investors on the proposed change.
Meanwhile, trading resumed at the local bourse on Tuesday, even after Malacañang's late announcement on Monday evening that again suspended government work and classes.