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Technical glitch prompts PSE to cancel trading

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MANILA, Philippines — Trading at the Philippine Stock Exchange (PSE) was canceled yesterday due to technical problems.

Market watchers waited for the bell to ring for the expected start of trading at 9:30 a.m., but it did not happen.

After lunch, the PSE issued an advisory, saying that trading was canceled.

“Please be advised that trading at the PSE is canceled today, Jan. 4, 2022 due to technical problems encountered in establishing connection between the NASDAQ trading engine and the Flextrade front-end system,” the PSE said.

It said that it continues to work and coordinate closely with representatives of NASDAQ and Flextrade to identify the underlying cause of the production issue and come up with the appropriate solution.

The PSE apologized for the cancelation: “We are sorry about this unfortunate incident and we are exerting all efforts to resolve the problem.”

PSE president Ramon Monzon said 43 brokers were unable to connect to the trading engine.

Under the PSE’s protocol, if one-third or more of the brokers are unable to connect, it needs to halt trading.

NASDAQ and Flextrade are troubleshooting their respective systems to pinpoint the problem and devise a solution, Monzon said.

Sought for comment, Japhet Tantiangco of Philstocks Financial said investors could have priced in the placing of some provinces near Metro Manila under Alert Level 3, and the possibility of the current rise in cases to surpass the Delta surge as warned by the Department of Health.

“However, since trading was canceled today, the aforementioned factors could be priced in tomorrow instead assuming trading already resumes. These factors may tilt the market’s direction to the downside once it opens,” he said.

Investors and analysts took to social media to complain about the trading cancellation, with some saying that the fees charged by the PSE are not cheap and yet such trading cancellations could still happen.

Some Tweets noted that the technical glitch came just a day after the Philippine Stock Exchange announced that it was named as the Best Stock Exchange in Southeast Asia for 2021 at the Marquee Awards of the 15th Annual Best Deal and Solution Awards 2021 by institutional investment magazine, Alpha Southeast Asia.
 

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