PSE to Invest In State-of-the-art Surveillance System
The Philippine Stock Exchange (PSE), acting on behalf of the successor company of its Market Regulation Division (MRD), is acquiring a new surveillance system which will enhance its capability to monitor stock trading activities and strengthen market integrity.
The successor company of the MRD is presently in the process of incorporation.
PSE Chairman Hans B. Sicat said the advanced, fully automated new surveillance system known as “EXTURE”, was developed by the Korea Exchange. Mr. Sicat added that the purchase agreement will be completed by the first quarter of 2011 and is expected to be operational by the first quarter of 2012.
Integrated into the EXTURE surveillance system are detection rules, statistic analysis models, benchmarks and accounts relation and pattern recognition logics. The accuracy of these analysis models is crucial for maintaining a fair and orderly market. The new surveillance also features an Integrated Visual Analysis System (IVAS) tool that can visually illustrate the market at a glance. Such a function reduces the average analysis and investigation time thereby increasing the efficiency of the whole market surveillance operations.
“The PSE has taken a major leap in improving governance in the Exchange by separating the regulatory and business functions through the incorporation of an independent and separate corporation that will supervise and monitor activities of trading participants.
Complementing this initiative is the purchase of a new surveillance system that will raise our surveillance standards to be at par with our regional and global peers. The investment in intelligent, state-of-the-art technology will help provide additional safeguards for stock market investors.” Mr. Sicat said.
The new surveillance system is dynamic, efficient, scalable and reliable. At the minimum, the system is designed to support a market of 1 million orders/trades per day. EXTURE can also adapt to any type of cash (whether equities or fixed-income instruments), derivatives and inter-linked markets in the world.
The PSE is the country’s only stock exchange with 253 listed firms and 133 active trading participants.