PSE and PDS to form derivatives market

The Philippine Stock Exchange (PSE) and the Philippine Dealing System (PDS) have agreed to develop a derivatives market for fixed income securities, equities and foreign exchange. The PSE operates the only stock exchange in the Philippines, while the PDS runs the country's fixed income exchange.

The move will make the local capital market more “sophisticated” as it would now expand to include instruments such as bond forwards, interest rate derivatives, credit derivatives, currency derrivatives, and equity derivatives.

In a presentation before the Securities and Exchange Commission (SEC), both entities committed to deliver in 90 days a definitive program that will provide efficient hedging alternatives, which will support trading activities. The target date of implementation would be between 90 days to 180 days later.