SCCP transitions into improved trading infrastructure

MANILA, Philippines — The Securities Clearing Corp. of the Philippines (SCCP), a wholly-owned subsidiary of the Philippine Stock Exchange (PSE), has successfully transitioned its clearing and settlement (C&S) system into a more improved trading infrastructure.

SCCP transitioned into  the Millennium Post Trade solution last month in a move seen enhancing its  clearing, settlement, risk and collateral management capabilities.

The Millennium Clearing and Millennium Risk products are provided by LSEG Technology, a subsidiary of the London Stock Exchange Group (LSEG).

PSE president and CEO Ramon Monzon said the move enhances the local bourse’s operational efficiencies.

“We are pleased with the smooth migration to the new clearing and settlement system and the outcome of the first week of handling post trade operations using the said system,” Monzon said.

“The adoption of LSEG’s Millennium technology enhances the operational efficiencies of our clearing house, ensuring improved services to the clearing members of SCCP,” he  said.

According to the PSE, the new C&S system can accommodate any settlement cycle and multi-currency assets and is capable of settlement of multiple trade dates in a single settlement date.

The post trade infrastructure uses ISO industry messaging standard and provides its users with comprehensive collateral management information.

Real time marking to market will likewise be possible in the future as the C&S system is also connected to the PSE trading engine.

“With this technology, we are gearing up to update our settlement cycle from the current T+3 to T+2,” Monzon said.

Prior to the rollout of the new system, SCCP conducted several training and industry-wide testing sessions with its clearing members, settlement banks, the Philippine Depository & Trust Corp. and the PSE.

Following its transition into a new system, SCCP is now one of over 25 financial market infrastructure and financial services firms that use LSEG Technology’s trading and post trade products.