MANILA, Philippines - The Philippine Stock Exchange (PSE) has secured board approval to enter into a memorandum of understanding (MOU) with Korea Exchange Inc. (KRX) to explore mutual cooperation and sharing of information.
In a disclosure yesterday, the PSE said the date of the signing of the MOU is still being arranged by the concerned parties.
“Through this MOU, we want to create a mechanism for long-term cooperation by developing channels of communication with KRX. We want to explore possible cooperation in several areas related to market information, product development and technology and other possible strategic alliances that are mutually beneficial to both our exchanges,” said Francis Lim, president and chief executive officer of PSE.
KRX, which is a consolidation of three of Korea’s domestic markets in 2005, manages and operates businesses relating to securities and futures trading in Korea.As of 2008, its equity markets KOSPI and the tech-heavy KOSDAQ markets had a total of 764 and 1,037 listed firms, respectively.
Last month, the PSE secured the go-signal from its board of directors to pursue an alliance with Ho Chi Minh Stock Exchange (HOSE), one of the fastest growing bourses in Southeast Asia.
The MOU with HOSE is scheduled to be signed on Sept. 25 in Vietnam.
Last year, the PSE signed an MOU with the New York Stock Exchange (NYSE) Euronext to establish a strategic alliance to jointly develop new exchange-traded products, explore new opportunities in trading system architecture and technology and enhance market participant connectivity and data management.
To further expand its presence in the region and boost market liquidity, the PSE signed an MOU in February this year to create a trading linkage among ASEAN countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.
Among ASEAN bourses that teamed up with the PSE to set-up the electronic linkage are Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET).
This ASEAN electronic link is expected to be launched in 2010, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the PSE.