THE Philippine Stock Exchange, Inc. (PSE) will buy P200 million worth of shares in one of its units to finance the acquisition of a new clearing and settlement system.
In a disclosure on Wednesday, the bourse operator said its board of directors has approved its subscription to two million shares in its wholly owned subsidiary Securities Clearing Corporation of the Philippines (SCCP) priced at P100 each.
“The additional investment will be used by SCCP to partially fund its new clearing and settlement system,” the PSE said.
“The new clearing and settlement system of the SCCP will ensure a smoother and more efficient clearing and settlement process.”
SCCP acts as the central securities clearing institution in the country, managing and supporting the clearance of trades in securities at the PSE and other official securities markets.
The payment will be made in cash, depending on SCCP’s funding requirements.
The PSE also said it will settle its outstanding subscription in SCCP worth P50 million.
SCCP’s board of directors approved the issuance of the shares to PSE last week. — Arra B. Francia
