COMPUTER WOES DELAY STOCK EXCHANGE $ TRADINGMakati 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
© Copyright, 2003
by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE