NYSE Euronext in pact with Philippine Stock Exchange

NYSE Euronext CEO Duncan L. Niederauer and Philippine Stock Exchange chairman Jose C. Vitug today signed a memorandum of understanding that establishes cooperation between the two exchange companies to jointly enter the areas of trading system architecture and technology, exchange traded products, market participant connectivity and market data management.

Philippines President, H.E. Gloria Macapagal-Arroyo, observes the MOU signing with Philippine Stock Exchange chairman Jose C. Vitug and NYSE Euronext CEO Duncan L. Niederauer

The MoU also includes details on the PSE's acquisition of a new trading system from NYSE Euronext and its affiliates, which was announced in April 2008.

''We welcome this opportunity to partner with Mr. Vitug and his colleagues at the Philippines Stock Exchange,'' said Niederauer at the signing ceremony. ''We are committed to the success of this alliance, which will benefit and create growth opportunities for both markets and their respective customers.''

Vitug hailed the agreement as one ''which will bring closer together the world's biggest stock market and Southeast Asia's oldest stock market.'' He added, ''This historic MoU will provide us a common base to explore together a whole new frontier of opportunities, from which we can re-energize our markets for future waves of growth.''

Francis Ed. Lim, PSE president and CEO, said, ''We in the PSE have very high hopes that our collaborative and cooperative understanding with the world's leading stock market operator will help hasten the transformation of the PSE into a premier exchange.'' Lim added that ''each possible area of mutual cooperation identified in the MoU will hopefully serve as guide in pursuing definitive agreements in the future. This represents the recognition of each party of the important role that the other will play in developing our respective stock markets.''

Under the terms of the NYX-PSE MOU signed today, areas of possible cooperation involve the sharing of information and experience on new stock markets products and services. The MOU also embodies the common goal of both companies to provide investors worldwide protection and operating fair, orderly and efficient markets. The MOU was drafted in the spirit that international cooperation between the two exchange companies will facilitate the development and efficient operation of all securities markets operated by the exchange groups.

The Philippine Stock Exchange, Inc traces its roots from the country's two former bourses: the Manila Stock Exchange (MSE) and the Makati Stock Exchange (MkSE). Founded in March 1927, the MSE was the first stock exchange in the Philippines and one of the oldest in Asia. Originally housed in downtown Manila, the MSE moved to Pasig City in 1992.

The MkSE, on the other hand, was established in May 1963 and became the second bourse to operate in the country. It was based in Makati City, a budding business district during those days. While trading the same listed issues, MSE and MkSE remained separate entities for almost 30 years.

December 23, 1992 marked a milestone for the Philippine capital market when the MSE and MkSE were unified to become the PSE. At present, PSE maintains two trading floors – one in Makati City and another in its head office in Pasig City.

Even with two trading floors, PSE maintains a "one-price, one-market" exchange through the MakTrade System. This is a single-order-book system that tallies all orders into one computer and ensures that these orders match with the best bid/best offer regardless of which floor the orders were placed. MakTrade likewise allows PSE to facilitate the trading of securities in a broker-to-broker market through automatic order and trade routing and confirmation. It also keeps an eye on any irregularity in the transactions with its market regulation and surveillance databases.

In June 1998, the Securities and Exchange Commission conferred to the PSE the status of a Self-Regulatory Organisation, which allows the PSE to implement its own rules and impose penalties on erring trading participants and listed companies.  In 2001, or a year after the Securities Regulation Code of 2000 was enacted, the PSE was reorganised and transformed from a non-stock, member-governed organisation into a shareholder-based, revenue-generating corporation. Along with this rebirth came the separation of the Exchange's ownership and trading rights, opening the doors for new market participants. On December 15, 2003, PSE shares were listed by way of introduction.

NYSE Euronext operates the world's leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing US options trading platforms.