The Philippine Stock Exchange plans to amend trading rules that will enable the local bourse to trade even on days when the clearing activities of the Bangko Sentral ng Pilipinas or Philippine Clearing House Corp. are suspended.
PSE issued the proposed amendment after the exchange suspended operations on Monday, following the decision of Malacañang Palace to suspend all classes and government work because of a nationwide transport strike.
Under PSE’s current trading rules, the exchange will trade every day except for Saturdays, Sundays, legal holidays, special holidays, days when the Bangko Sentral ng Pilipinas is closed, and such other days as may be declared by the Securities and Exchange Commissions or the exchange.
PSE uses the Philippine Payment and Settlement Systems of the BSP to facilitate the cash payments for cash purchases. Thus, it needs PhilPaSS to be operational and allow settlement 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,” PSE said.
“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 said.
PSE sought comments from investors on the proposed change in a memorandum.
Meanwhile, trading resumed Tuesday despite the late announcement from Malacañang on suspension of work in government because of the nationwide transport strike.
PSE said trading resumed as PhilPaSS confirmed it would be operating Tuesday despite the uspension of work in government offices.
PSE on Sept. 12 also declared a trading suspension because of typhoon “Maring”.