Q&A with the Philippine Stock Exchange on Advancing its Technology Relationship with Nasdaq

Technology strategy is a key part of modernization for financial market infrastructures (FMIs). Gaining scale, agility and innovative capabilities will be crucial to overcoming challenges today while positioning for opportunities tomorrow.

Recently, the Philippine Stock Exchange (PSE) announced an expansion of its technology partnership with Nasdaq. By adopting Nasdaq Trading Eqlipse, part of the recently launched Nasdaq Eqlipse platform, PSE will be able to leverage wide functionality, flexible deployment and cloud optionality to improve its trading infrastructure. This move is also paired with an upgrade to Nasdaq-provided market surveillance solutions.

We recently sat down with Ramon S. Monzon, PSE President and CEO, to learn more about the drivers behind PSE’s strategic decision and how a deeper relationship will benefit the exchange and its market ecosystem.

PSE is due for a trading engine upgrade. We checked a number of the latest trading technology available and had a few providers present their products to us. After careful evaluation and benchmarking, we decided to go with Nasdaq.

We have been using Nasdaq’s trading engine since 2015 and have been quite happy with the performance and support we receive. We established a good rapport with the Nasdaq team over the years and we hope this will continue even with new personalities involved.

The Capital Markets Integrity Corporation (CMIC), which acts as the independent audit, surveillance and compliance arm of PSE, will also be shifting to the Nasdaq Market Surveillance platform as part of the expanded relationship. 

Using the latest trading technology bolsters our role as a market operator and regulator, which is instrumental in boosting investor confidence in PSE and attracting more capital from foreign and domestic investors.

Having a single provider for both PSE’s trading engine and CMIC’s surveillance system allows for a seamless integration that will support better monitoring of trading transactions to protect the market from potentially manipulative practices. 

Increasing market depth is one of the main themes of PSE’s strategic plan. A key initiative in this area is to shift from a cash-only market to one that provides hedging instruments such as derivatives to boost market liquidity. We need a platform that allows trading of products we have in the pipeline to introduce in the coming years.

With technology as a key area in our strategic agenda, it is important for PSE to work with a trusted service provider of market technologies. Given this, PSE opted to renew its partnership with Nasdaq to ensure continuity in offering a dependable trading system that meets all our current and future requirements.

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