Analysts say the Philippine Stock Exchange's (PSE) proposed negotiated trades facility would address a long-standing gap in the local equity market by enabling pre-arranged transactions that cannot be executed under existing trading rules, according to a report by BusinessWorld.
The facility would allow block sales and other large transactions to be executed outside the exchange's continuous auction market, provided they meet certain price and disclosure requirements. This aims to provide a formal channel for institutional trades that currently have no appropriate venue under PSE rules.
Market participants view the initiative as a timely reform that could enhance liquidity and attract more institutional investors. The PSE has yet to announce a timeline for implementation, but the proposal is expected to undergo public consultation before finalization.