COMPUTER WOES DELAY STOCK EXCHANGE $ TRADING

Makati City, June 2, 2003 -- The Philippine Stock Exchange (PSE) will not 
open its dollar denominated trading (DDT) facility this month due to 
various technical problems in its computer trading systems.

In a press briefing, PSE president Ernest Leung said the bourse's IT group 
encountered numerous glitches when it tried to enter the issues to be 
traded under the DDT facility into its automated trading system.

Leung said because  there is no way to anticipate what glitches may surface 
during the computer set up, he can't say when the facility could begin 
operating.

"Its a discovery process," he said.

Meanwhile, he admits the DDT facility will bring to fore the problem of 
arbitrage where traders buy or sell the stock not for demand of the issue 
but to take advantage of differences in the exchange rate.

Leung said there are safeguards to limit currency speculation being 
implemented by the central bank but there is no way to totally eliminate 
this problem.

The DDT facility will eventually allow cross-border trading of issues that 
are also listed in other exchanges overseas.

Reported by: Sol Jose Vanzi

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