PSE proposes uniform 10 per cent dynamic trading threshold
Stakeholders have until Nov. 19 to comment on a proposal replacing three trading-activity tiers with one limit.
The Philippine Stock Exchange (PSE) is seeking stakeholder feedback on plans to apply a single 10 per cent dynamic threshold across securities, replacing limits that vary with trading frequency. The exchange said the change would simplify trade execution for market participants and its own operations.
The existing system assigns thresholds of 20 per cent, 15 per cent or 10 per cent according to how often a security traded over the previous six months. Securities with fewer trades receive higher limits, the PSE said.
Under the proposal, negotiated trades and cross transactions would be exempt from the dynamic threshold, as block sales already are. Interested parties have until Nov. 19 to submit comments.
The PSE said a uniform limit would remove the need to review threshold classifications every six months and make reclassifications between scheduled reviews. It also said the proposal would bring its approach closer to those of other ASEAN exchanges that use dynamic thresholds.
According to the PSE’s benchmarking, the Singapore Exchange uses a uniform 10 per cent dynamic limit, while Bursa Malaysia sets its dynamic price band by price tier. The PSE said it wanted to retain a single, calibrated threshold to help guard against erroneous order entries and abrupt intraday price changes.
