RP to trade derivatives

RP to trade derivatives

MANILA (AFP): The Philippine Stock Exchange (PSE) is to set up a new corporation to handle the trading of derivatives in a move aimed at broadening local financial markets, the bourse president said.

PSE president Eduardo de los Angeles said the new outfit, called the Philippine Options and Futures Exchange (POFE), is expected to start operations within the first three months of 1997.

It will have an initial capitalization of 20 million pesos (US$769,000) which will later be increased to 200,000 pesos, de los Angeles told a breakfast forum here.

The new firm will have its own of officers and members, as well as separate trading regulations and clearing corporations, said de los Angeles, who steps down next month at the end of his three-year term.

He said the POFE will apply for a license next month. The PSE board of directors is expected to approve the draft regulations for the new company during a meeting this week.