PDEX Trading Platforms and Systems
PDEx began trading operations in Government Securities in March 2005, with a Negotiated Dealing System for the Inter-Dealer Market. The system was enhanced with the introduction of Straight-Through-Processing (STP) in September 2006. The STP facility generates settlement instructions from trades in the centralized transaction data base in the Trading System and publishes them into a secure website for the Operations Personnel of Trading Participants to reconcile and authorize. Once authorized, the settlement instructions are sent through to the Bureau of the Treasury (BTr), which operates the Delivery-versus-Payment Service for Government Securities with the Bangko Sentral ng Pilipinas (BSP, the Philippine Central bank). The facility eliminates the need for the Operations Personnel to re-enter trade-related settlement instructions into a separate system.
An Auto-Matching System was also launched in November 2006, to complement the trading of Government Securities on Negotiated Dealing System. This system allows Trading Participants to enter live Bid and Offer Orders anonymously into a Central Order Book. The Central Order Book has a matching engine that generates trades with matching algorithms based on trading limits, price, and time. The Auto Matching System shall provide the basic structure for the key product offering of trading between and among public participants.
To support the Auto-Matching System, PDEx launched a Market Maker Program with the expressed objective of increasing price liquidity in twelve (12) pre-identified government securities with outstanding size of Php8.0 Billion or higher. Eleven (11) institutions have initially participated in this program all of whom actively trade on PDEx. This incentive program shall be enhanced for Trading Participants that will commit to providing price liquidity into the expanded market for qualified institutions and retail investors.
A significant development has also been the appointment by the Bankers Association of the Philippines of PDEx as the Official Calculation Agent for new Philippine fixed income interest rate benchmarks. Under this engagement, PDEx through its SRO, monitors compliance with timeliness and accuracy standards for price and transaction reporting, further strengthening the interest rate benchmark setting process. Live operations on setting the new PDS Treasury Reference rates commenced on March 19, 2006.
Read more about this topic: Philippine Dealing Exchange
Famous quotes containing the words trading, platforms and/or systems:
“His farm was “grounds,” and not a farm at all;
His house among the local sheds and shanties
Rose like a factor’s at a trading station.”
—Robert Frost (1874–1963)
“The personal things should be left out of platforms at conventions .... You can argue yourself blue in the face, and you’re not going to change each other’s minds. It’s a waste of your time and my time.”
—Barbara Bush (b. 1925)
“The only people who treasure systems are those whom the whole truth evades, who want to catch it by the tail. A system is just like truth’s tail, but the truth is like a lizard. It will leave the tail in your hand and escape; it knows that it will soon grow another tail.”
—Ivan Sergeevich Turgenev (1818–1883)