PSE new system to reduce clearing to 2 days

The Securities Clearing Corporation of the Philippines (SCCP), a wholly-owned subsidiary of The Philippine Stock Exchange, Inc. (PSE), has successfully transitioned to the Millennium Post Trade solution that will reduce its clearing and settlement (C&S) system by a day to two days from the current three days.

The PSE said the shift to the new C&S system last March 27, 2023 will enhance SCCP’s clearing, settlement, risk and collateral management capabilities.

The Millennium Clearing and Millennium Risk products are provided by LSEG Technology, a subsidiary of the London Stock Exchange Group (LSEG).

“We are pleased with the smooth migration to the new clearing and settlement system and the outcome of the first week of handling post trade operations using the said system,” said PSE President and CEO Ramon S. Monzon.

He added that, “The adoption of LSEG’s Millennium technology enhances the operational efficiencies of our clearinghouse, ensuring improved services to the clearing members of SCCP.”

The new C&S system can accommodate any settlement cycle and multi-currency assets and is capable of settlement of multiple trade dates in a single settlement date.

The post trade infrastructure uses ISO industry messaging standard and provides its users with comprehensive collateral management information.

The C&S system is also connected to the PSE trading engine, which will make real time marking to market possible in the future.
“With this technology, we are gearing up to update our settlement cycle from the current T+3 (3 days) to T+2 (2 days,” Monzon said.

Prior to the roll out of the new system, SCCP conducted several training and industry-wide testing sessions with its clearing members, settlement banks, the Philippine Depository & Trust Corp. and the PSE.

SCCP is now one of over 25 financial market infrastructure and financial services firms that use LSEG Technology’s trading and post trade products.