SEC approves offsite trading protocols amid Luzon quarantine

Corporate regulator Securities and Exchange Commission (SEC) on Wednesday approved offsite trading protocols to be taken by the Philippine Stock Exchange (PSE) amid an enhanced community quarantine over Luzon.

In a statement, the SEC said its en banc approved on March 18 procedures to enable offsite trading and ensure continued operation of capital markets while a quarantine is in place.

From 12:00 a.m. on Tuesday, March 17, the entire Luzon was placed on enhanced community quarantine until April 12, 2020, restricting travel within the region in efforts to contain the spread of COVID-19.

Trading on the PSE is scheduled to resume on Thursday, March 19.

"The continued operation of the capital market ensures that both the government and business sector, particularly small and medium enterprises, have continued access to capital or financing," said SEC Chairperson Emilio Aquino.

"Access to capital or financing is necessary for the government and businesses to support critical operations such as healthcare provision and food production, especially during this period of public health emergency," he added.

Offsite trading protocols

Under the approved protocol, the Philippine Stock Exchange (PSE) will perform start-of-day activities remotely using a virtual private network (VPN), and will operate using the systems and servers in its primary site.

All trading services will be available and trading participants will be able to place orders and connect to the trading system, provided they have an alternative site outside the PSE Tower where trading, back office, clearing, and settlements may be performed.

The SEC has also required trading participants to publish their contact details where they may be reached by clients for any trading or account-related queries and concerns.

A skeletal workforce will man the Securities Clearing Corporation of the Philippines (SCCP) and communicate with clearing members, settlement banks, and the Philippine Depository & Trust Corp. via email and phone.

Clearing members will be given access to the Central Clearing and Central Settlement (CCCS) system through the internet, provided they have key files for authentication.

Such members will have a copy of the CCCS file uploading utility or application which will be installed in a separate laptop or desktop housed in the alternative site.

"The provision of market data to the exchange’s stakeholders will be uninterrupted, barring any telecommunications issue. Market data will continue to be accessible to the public on the exchange’s websites," said the SEC.

Meanwhile, the submission of listing applications and correspondences with listed companies will now be done through email.

For listed companies, they can continue submitting disclosures through the PSE EDGE which can be accessed remotely using VPN. —AOL, GMA News