PSE commits ₱2.8 billion to overhaul technology, AI, market systems
Ramon S. Monzon, PSE president and chief executive officer
The Philippine Stock Exchange (PSE) is spending ₱2.85 billion on new technology, including a new trading engine and AI, to upgrade its operational capabilities and strengthen its self-regulatory functions.
“Technology remains a key investment area for the PSE Group,” said PSE President and CEO Ramon S. Monzon during his presentation at the PSE Strengthening Access and Reach (PSE STAR) investor briefing.
The planned investments include a new trading engine (₱940 million), a clearing system (₱890 million), a new disclosure platform (₱260 million), a new central depository system for the Philippine Depository and Trust Corp. (₱450 million), back-office capability upgrades (₱80 million), a new surveillance system for the Capital Markets Integrity Corp. (₱150 million), and various AI initiatives (₱75 million).
While the PSE rolled out a new clearing and settlement system for the Securities Clearing Corporation of the Philippines (SCCP) a few years back, all other projects are either ongoing or upcoming.
“Altogether, these systems and initiatives represent approximately ₱2.85 billion in projected capital and operating expenditures spread over a 10-year period,” Monzon said.
He noted that, “These investments are aimed at enhancing market efficiency, resiliency, and transparency, while laying the foundation for future products and services that will support the continued development and future-proofing of the Philippine capital market.”
Beyond core infrastructure and as part of its digital transformation journey, Monzon said the PSE is strengthening its data capabilities and expanding the use of artificial intelligence across the organization.
“We are currently working with Amazon Web Services, or AWS, on a data strategy and infrastructure assessment to modernize our data architecture, strengthen data governance, and establish a solid foundation for advanced analytics and AI capabilities,” he said.
Complementing this initiative is the bourse’s partnership with the International Finance Corporation, which is helping assess the PSE's data and technology landscape against international standards to identify opportunities to further enhance its infrastructure and analytics capabilities.
In addition, through its Executive and Staff AI Enablement Program with Thinking Machines, the PSE continues to build AI awareness and skills among its employees while promoting the responsible and effective use of AI in the workplace.
On the ongoing integration with subsidiary PDS Holdings Group, Monzon said, “We have already identified 13 systems and platforms for consolidation, and the integration of these systems is well underway.”
“We are currently working on consolidating our network and infrastructure, including surveillance and edge systems, while ensuring that PDS requirements are incorporated into ongoing technology upgrades across the PSE Group,” he added.
The PSE and the PDS Group have also established cross-functional working groups and identified opportunities for shared services in areas such as human resources and internal audit.
“Looking ahead, our next phase of integration is focused on building a more unified market infrastructure,” said Monzon.
Key initiatives include enhancing post-trade activities, expanding investor protection measures, supporting the development of new products, and implementing unified risk management, compliance, strategic planning, budgeting, and performance monitoring frameworks across both the PSE and PDS.