'Floorless trading': PSE to shut trading floor from June 24 as brokers adapt to new normal

ABS-CBN News

Posted at Jun 16 2022 11:01 AM | Updated as of Jun 16 2022 04:52 PM

Traders work on their desks as lion dance performers approach their stations at the new Philippine Stock Exchange (PSE) headquarters at the Bonifacio Global City in Taguig on Monday, Feb. 19, 2018. George Calvelo, ABS CBN News/File
Traders work on their desks as lion dance performers approach their stations at the new Philippine Stock Exchange (PSE) headquarters at the Bonifacio Global City in Taguig on Monday, Feb. 19, 2018. George Calvelo, ABS CBN News/File

MANILA — The Philippine Stock Exchange will permanently close its trading floor on June 24 after the pandemic proved that "floorless" activities can be done seamlessly, PSE president Ramon Monzon said Thursday.

In 2020, the PSE temporarily shut the trading floor and implemented a remote trading setup when a lockdown was imposed to curb the spread of the COVID-19 pandemic. 

After restrictions eased, shortened trading hours were implemented before the pre-pandemic trading schedule was restored.

The PSE floor can house 85 brokers to conduct trade, but despite allowing them to go back on site, only 29 out of the total have renewed their leases, Monzon told ANC. 

Out of the 29 leases, only about 10 brokers use the floor to trade on a daily basis, he added.

Most brokers now conduct their business remotely or in alternative locations. 

"We were able to prove during the pandemic in 2020 that in one day’s time we could go on floorless trading and in 3 months, trading was very seamless even [with] the trading floor not operating. So I don’t see any concern about the trading floor [closing],” Monzon said.

"So really it has become obvious, it has reflected the fact that we don’t really need a trading floor," he added.

Monzon said the floor would probably be converted into office spaces for its employees so that the other parts of the PSE building can be leased out. 

He said bell-ringing ceremonies for stock exchange listings would still be conducted at the PSE headquarters.

The PSE moved to its Taguig headquarters in 2018.

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