Corporate News

By Krista Angela M. Montealegre, Senior Reporter

Glitch halts PSE trading for 40 minutes

Posted on April 09, 2016

A TECHNICAL problem forced the Philippine Stock Exchange (PSE) to halt trading for more than 40 minutes yesterday, but the bourse’s president assured the public that the issue was unrelated to the series of glitches that hit the stock market last year.

On the sidelines of the Public-Private Partnership (PPP) Forum in Makati City yesterday, PSE President Hans B. Sicat told reporters the links to various servers were disconnected from the system, prompting the exchange to halt trades at 10:29 a.m. Trading resumed at 11:10 a.m.

“On a preliminary basis, we think what it was basically is due to a third-party network disconnection -- a line got disconnected -- and that created the issue. It was best to halt trading to make sure that all systems are stable,” Mr. Sicat said.

Sought for comment, SEC Chairperson Teresita J. Herbosa told reporters in the same event the corporate regulator will investigate the matter.

“We will look into it,” Ms. Herbosa said.

This is the first time that the PSE froze trades this year. Trading was disrupted four times between August to September last year, including a five-hour stoppage -- the longest in the bourse’s history.

“It was due to a third-party network issue so it wasn’t the same as what we saw last year. Clearly, we are evaluating what exactly happened,” Mr. Sicat said.

Last year’s technical glitches stemmed from a middleware -- the software that sends information from the base trading engine to the front-end terminals -- and not from the new platform developed by NASDAQ OMX Group, Inc.

These technical issues were among the reasons cited by Securities and Exchange Commission in rejecting the proposal of the PSE to unify the country’s capital market infrastructure.

“We already said that the SEC was wrong to say that it wasn’t resolved. It was resolved. We had a third-party provider that validated that the issues (last year) were fixed,” Mr. Sicat said.