The Philippine Stock Exchange Inc. (PSE) is open to selling up to 49 percent of the Philippine Dealing and Exchange Corp. (PDEx) to the Bankers Association of the Philippines (BAP), marking a significant development in the ongoing integration of the country’s capital markets.
PSE president and CEO Ramon S. Monzon said the offer aligns with the Exchange’s strategy to unify the equities and fixed-income markets under its control while ensuring strong collaboration with the banking sector, which dominates trading on PDEx. “You want to have them as a partner, not as an adversary,” Monzon said, emphasizing the banks’ central role in revenue generation and product development in the fixed-income space.
The move follows PSE’s recent acquisition of a controlling 91.6 percent stake in Philippine Dealing System Holdings Corp. (PDS), the parent company of PDEx and the Philippine Depository & Trust Corp. (PDTC). The acquisition fulfills a long-standing consolidation plan that aims to streamline market operations, bolster risk management, and develop new financial products.
The BAP had initially agreed to sell its 28.83 percent stake in PDS to the PSE, on the condition that the Exchange would later return PDEx ownership to the banking sector. Other previous stakeholders in PDS included Tata Consulting and Whistler Technology (8 percent each), AIA, and San Miguel Corp. (4 percent each).
Monzon underscored the commercial rationale behind the planned equity sharing: “Being the primary stakeholders of the fixed income market, [the banks] would be very helpful in coming up with new products.”
Financially, the integration is already bearing fruit. PSE reported a 5 percent rise in net income to ₱254.67 million in Q1 2025, driven by an 82 percent surge in operating revenues to ₱645.49 million. The gains were attributed to increased trading and listing activity, the consolidation of PDEx and PDTC revenues, and improved equities market performance.
Operating expenses rose 94 percent to ₱339.14 million due to the integration of PDS operations.
With the majority control of PDS now secured and a potential strategic partnership with BAP on the table, the PSE is positioned to play a more dominant role in shaping the Philippine capital markets landscape.
