MANILA (UPDATED) — The Philippine Stock Exchange's trading floor, one of the oldest in Asia, permanently closed on Friday, as the COVID-19 pandemic proved remote or floorless trading was seamlessly possible.

A closing ceremony was held with traders and officials in attendance, some of them seen taking photos and hugging each other.

The PSE moved to the 695-square meter trading floor in Taguig in February 2018 from Makati. But during the pandemic, traders and brokers were forced to work remotely due to the lockdowns.

From 86 brokerage with leases, only 29 renewed their slots when the PSE reopened to trading. In the recent months, out of the 29, about 10 physically use the floor to trade, prompting the PSE to shut the space for trading activities, said PSE president Ramon Monzon.

While its service to brokers was "short-lived", the space would be repurposed to better serve stakeholders, he said during the closing ceremony.

"With COVID, these 86 [traders] experienced offsite trading when we had to go floorless due to the lockdowns. This clearly demonstrated to the trading participants that seamless trading can be done so long as they are connected to the PSE's trading platform," Monzon said.

"The PSE may be among the few exchanges to have retained a trading floor up to this day. But in the end, technology finally prevailed," he added.

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SENTIMENTAL SHIFT

Monzon said closing the physical trading floor was a "sentimental moment." The Philippines has one of the oldest stock markets in Asia.

The PSE chief recounted that the Manila Stock Exchange was organized in 1927, but the first formal reference to a trading floor was in 1964.

"I understand this is sentimental moment for everyone who found comfort and security in being at the trading floor. Decades-long friendships have been built over the years among the trading participants and traders on this floor and this should not and hopefully will not end," Monzon said.

"What this shows is the PSE is already in the digital age. We can do trading without a floor... More than the physical closing of this trading floor, what we are also closing is a 64-year-old chapter in the history of the local stock exchange," he added.

He said as technology allowed for remote trading, it should also help keep the camaraderie among traders alive.

Monzon noted the Philippines was the last country in Southeast Asia to fully shift to virtual trading.

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For longtime trader Ali Yu, the closure is bittersweet and melancholic. He remembers the time he was trading at the then-called Makati Stock Exchange, saying one thing he will miss is the bonding with other traders during lunch breaks or after work.

But he is also happy with the change as online trading can attract more investors.

The trading floor will be converted into office space. But the ticker and the LCD screens will remain for the ceremonial ringing of the bell and other events.

Both Monzon and Yu believe the shift to floorless or virtual trading will be good for the PSE. This may also attract more investors because everything will now be online.

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