PSE REVIVES PDS TAKEOVER PLAN

With state-owned Land Bank of the Philippines now preoccupied with its merger with United Coconut Planters Bank, the Philippine Stock Exchange (PSE) sees another chance to rekindle its long-running plan to acquire capital market infrastructure provider Philippine Dealing System Holdings Corp. (PDS).

If it’s not possible to buy the whole of PDS, the PSE is gunning for at least one of its operating units—the depository platform operated by Philippine Depository & Trust Corp. (PDTC).

Incorporated in 1995, PDTC acts as depository, registry and/or intermediary of participants for all kinds of securities or financial instruments and provides value-added services such as collateral management for repurchase transactions. It is also a lending agent and collateral manager for securities lending and borrowing transactions and similar activities.

“Our interest in PDS or the depository has not waned. It’s a question of timing,” PSE president Ramon Monzon said at a briefing on Friday .

“We are still determined to pursue that because I really believe that the depository has to be owned by the exchange for risk management,” Monzon said.

If the PSE owned PDTC, Monzon said the exchange could easily monitor EQ trades or the transfer of shares between brokers, thereby improving risk management controls.

“We can take a look at that, if it’s correct or not. So for that reason, we are still very very interested to acquire PDS, or at least the depository. But obviously, we’ve been delayed by COVID [pandemic] but let’s revisit that next year,” Monzon said.