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    Philippine Stock Exchange Trading Cycle

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    Jeremy Marinay
    1. To buy or sell stocks or bonds on the Philippine Stock Exchange, an investor must use a licensed stockbroker. The stockbroker will help open an account, assign a trader, and execute trade orders on the investor's behalf. 2. For stock trades, settlement occurs within 3 days (T+3) of the trade date, meaning the seller must deliver shares and the buyer must pay within 3 days. Bond trades are settled on the same day (T+0) through electronic registry without physical certificates changing hands. 3. The stockbroker will provide confirmation of purchases or proceeds of sales to the investor within the settlement period. Physical stock certificates can be issued for a fee, but most trades now

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    Philippine Stock Exchange Trading Cycle

    Uploaded by

    Jeremy Marinay
    104 views2 pages
    1. To buy or sell stocks or bonds on the Philippine Stock Exchange, an investor must use a licensed stockbroker. The stockbroker will help open an account, assign a trader, and execute trade orders on the investor's behalf. 2. For stock trades, settlement occurs within 3 days (T+3) of the trade date, meaning the seller must deliver shares and the buyer must pay within 3 days. Bond trades are settled on the same day (T+0) through electronic registry without physical certificates changing hands. 3. The stockbroker will provide confirmation of purchases or proceeds of sales to the investor within the settlement period. Physical stock certificates can be issued for a fee, but most trades now

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    Buying Investments and Trading Cycle in PSE

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    1. To buy or sell stocks or bonds on the Philippine Stock Exchange, an investor must use a licensed stockbroker. The stockbroker will help open an account, assign a trader, and execute trade orders on the investor's behalf. 2. For stock trades, settlement occurs within 3 days (T+3) of the trade date, meaning the seller must deliver shares and the buyer must pay within 3 days. Bond trades are settled on the same day (T+0) through electronic registry without physical certificates changing hands. 3. The stockbroker will provide confirmation of purchases or proceeds of sales to the investor within the settlement period. Physical stock certificates can be issued for a fee, but most trades now

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    104 views2 pages

    Philippine Stock Exchange Trading Cycle

    Uploaded by

    Jeremy Marinay
    1. To buy or sell stocks or bonds on the Philippine Stock Exchange, an investor must use a licensed stockbroker. The stockbroker will help open an account, assign a trader, and execute trade orders on the investor's behalf. 2. For stock trades, settlement occurs within 3 days (T+3) of the trade date, meaning the seller must deliver shares and the buyer must pay within 3 days. Bond trades are settled on the same day (T+0) through electronic registry without physical certificates changing hands. 3. The stockbroker will provide confirmation of purchases or proceeds of sales to the investor within the settlement period. Physical stock certificates can be issued for a fee, but most trades now

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    Philippine Stock Exchange Trading Cycle

    BUYING AND SELLING SHARS AND SDT-BONDS

    If you wish to buy shares of stocks or SDT-Bonds, you must have a stockbroker who will
    do this for you. A stockbroker is a person or a corporation authorized and licensed by the
    Securities and Exchange Commission (SEC) and PSE to trade securities.

    Investing Procedures:

    1. Choose a stockbroker. The PSE has a complete list and information about all its trading
    participants who are authorized and qualified to trade either equity or debt securities
    for you. This list is also available on the Exchange's website and the PLDT directory's
    Government and Business listings yellow pages under the category of stock and bond
    brokers.
    2. You shall be required to open an account and fill-out a Reference Card and to submit
    identification papers for verification. The stockbroker will then assign a trader or agent
    to assist you in either buying or selling any listed security. Discuss with the trader what
    stocks to buy or sell.

    3. Give the order to your broker/trader, and then get the acknowledgement receipt.

    4. For equity transactions: Deliver the Stock Certificate if you are selling or pay within the
    settlement date (3 days from date of transaction) if you are buying. Some brokers may
    require you to pay with post-dated checks upon ordering.

    For SDT-Bonds transactions: Selling investors must open a RoSS account under his
    broker's sub-account and instruct his bank-underwriter to transfer the share to this
    account. Buying investors must also open an account with a BTr accredited bank and
    pay the appropriate amount of transaction to the settlement bank on the trade date.

    5. You shall receive from your broker either the proceeds of sale your stocks (after 3 days
    for equities and on the date of trade for SDT-Bonds) or proof of ownership of stocks you
    bought (confirmation receipt and invoice). If you wish to have a physical certificate of
    the equities you bought, just give instructions to your broker and pay the required
    upliftment fee. Buyers of SDT-Bonds will only be given a confirmation slip in lieu of the
    bond certificates.

    You can purchase shares of stock either through IPO (Initial Public Offering) or through
    the open market. Shares sold through IPOs are offered for the first time to the public by the
    company (primary market) whereby proceeds of the sale go directly to the company. Shares of
    listed or publicly traded companies are bought during trading (open market). These shares have
    since been transferred from one owner to another (secondary market) and proceeds of the sales
    do not go directly to the company but to the owners of the shares.
    THE TRADING CYCLE

    All equity transactions, whether buying or selling has a settlement period of T+3 (trading
    day + 3 working days). This means that a seller should be able to deliver the stock certificate, if
    any, to his broker and the buyer must have paid the cost of transaction to his broker within 3
    working days after the trade was done. Historically, settlement was done manually (27-day
    cycle). With the advent of scripless trading wherein settlement is done via the book-entry-
    system (thru Philippine Central Depository or PCD), transactions are settled on the third day
    after trade date. Under this system, the investor has the option to hold on to his certificate
    (uplift) or deposit (lodge) this certificate in PCD through his broker-participant account.

    SDT-Bonds transactions, however, are settled on the same day when the trade is
    transacted (T+0). There shall be no physical transfer of bond certificates. The transfer of
    securities shall be conducted electronically by the BTr's Registry of Scripless Securities (RoSS).
    On the other hand, cash settlement will be coursed through the PSE's two settlement banks
    namely, Equitable-PCI Bank and Rizal Commercial Banking Corporation.

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