The broker-directors, led by Robert Coyiuto Jr., said the purchase of the new hardware is not practical at this time given the current low trading volume, with no sign of any improvement in the market in the foreseeable future.
"We therefore request that this project be held in abeyance until the performance of our market has reached a substantial volume justifying the acquisition of the said system," the brokers said.
Coyiuto, along with Eddie Gobing, Harry Liu, Edwin Luy and Federico Lim, went on to say that there is a need to preserve their resources during these hard time since there is no urgent and critical need for the installation of the clearing/settlement system at this time.
While PSE president Ernest Leung acknowledged their argument as valid points, he said the system, which would only cost about $800,000 would be more practical to acquire at this time, ironically using the low trading volume also as a prime consideration.
"Our existing system is old, but not obsolete, but still there is a need to upgrade it and the best time to do that is when there is not much activity. It’s like trying to repair a car while its running, you don’t do that," Leung said.
He added there are several alternative systems but these are more expensive, which could lock out the PSE with no other choices.
Leung said the plan, which has already gotten board approval, would be in line with the restructuring of the Securities Clearing Corporation of the Philippine (SCCP), the clearing and settlement house 51 percent owned by the PSE.