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Body 3 Praesent sodales consequat velit ut vulputate. Donec pretium congue porttitor. Phasellus elit dolor, faucibus a adipiscing sit amet, suscipit
nec risus. Cras scelerisque quam sed erat venenatis in dapibus augue tristique. Proin enim ante, fermentum sed iaculis quis, hendrerit adipiscing leo.
Morbi lorem velit, scelerisque a pharetra sit amet, hendrerit et lectus. Suspendisse elit justo, pulvinar eu tempus quis, tincidunt in odio. Aliquam
ac tellus purus, in porttitor enim. Aliquam erat volutpat. Nulla facilisi. Duis nec tellus a libero tincidunt eleifend. Vestibulum iaculis erat non ante
convallis id luctus urna adipiscing.

Notes 1 Proin enim ante, fermentum sed iaculis quis, hendrerit adipiscing leo. Morbi lorem velit, scelerisque a pharetra sit amet, hendrerit et lectus.
Suspendisse elit justo, pulvinar eu tempus quis, tincidunt in odio.

Notes 2 Aliquam ac tellus purus, in porttitor enim. Aliquam erat volutpat. Nulla facilisi. Duis nec tellus a libero tincidunt eleifend. Vestibulum iaculis erat nonante convallis id luctus
urna adipiscing.

Blurb Praesent sodales consequat velit ut vulputate. Donec pretium congue

porttitor. Phasellus elit dolor, faucibus a adipiscing sit amet, suscipit nec risus.

Label Praesent sodales consequat velit ut vulputate. Donec pretium Hans B. Sicat
congue porttitor. Phasellus elit dolor, faucibus a adipiscing sit amet, President
suscipit nec risus. Cras scelerisque quam sed erat venenatis in Chairman, Corporate
dapibus augue tristique. Governance Committee
CHARGING TO NEW HIGHS
The Philippine Stock Exchange, Inc. 2010 Annual Report
 Table of Contents

01
02
Financial Highlights
Chairman’s Message
A Banner Year
06 President’s Message FINANCIAL HIGHLIGHTS
The Philippine Stock Exchange, Inc. and Subsidiary
08 Stock Market Performance
10 Operational Highlights
48 PSE Board of Directors
50 Executive Officers
Change
(in thousand pesos) 2010 2009 Amount %
51 Department and Section Heads,
Officers-in-Charge RESULTS OF OPERATIONS:
52 SCCP Board of Directors and Officers TOTAL REVENUES 938,023 624,300 313,723 50.25
Listing Fees, Maintenance & processing fees 401,887 202,092 199,795 98.86
53 Information Required by the
Trading fees 176,029 139,283 36,746 26.38
Securities Regulation Code Service Fees 215,604 177,576 38,028 21.42
55 Report of the Market Integrity Board Interest Income 78,593 86,830 (8,237) (9.49)
56 Report of the Corporate Governance Committee Others 65,910 18,519 47,391 255.90

57 Report of the Audit Committee

TOTAL OPERATING EXPENSES 407,195 346,562 60,633 17.50
58 Statement of Management’s
INCOME BEFORE INCOME TAX 557,410 281,292 276,118 98.16
Responsibility for Financial Statements NET INCOME AFTER TAX 417,497 207,743 209,754 100.97
59 Independent Auditors’ Report
60 Financial Statements
Balance Sheets YEAR-END FINANCIAL CONDITION:
Statements of Comprehensive Income TOTAL ASSETS 2,282,358 2,086,698 195,660 9.38
Statements of Changes in Equity Cash and cash equivalents 389,145 393,731 (4,586) (1.16)
Statements of Cash Flows
Notes to the Financial Statements Short-term Available-for-Sale Investments 837,844 315,898 521,946 165.23
Long-term Available-for-Sale Investments 126,783 610,473 (483,690) (79.23)
104 Listed Issues as of Yearend 2010
Property and Equipment 570,317 509,184 61,133 12.01
107 List of Active Trading Participants
IBC Corporate Information TOTAL LIABILITIES 261,268 171,284 89,984 52.53
Current Liabilities 255,235 166,390 88,845 53.40

EQUITY 2,021,090 1,915,415 105,675 5.52

About the Cover

“Charging to New Highs” embodies the market bull run of 2010 as the Philippine Stock Exchange (PSE) index zoomed to historic levels.
The charging bull is the market symbol of strength, energy and aggressive financial optimism. The sprinter symbolizes the drive to push
forward with reforms, whatever the market conditions may be, to boost capital market development in the country.
 A Brilliant
Finish
CHAIRMAN’S MESSAGE
Dear Shareholders,
The year 2010 was a period marked by new
beginnings. In our country, we saw the election of
a new President with an overwhelming mandate
to govern and for the first time, an election
technology that worked on a massive scale.
Around the world, the economic recovery began
despite near bankruptcies of some European
nations.
The massive oil spill off Texas showed that technology still cannot
cope with certain challenges from nature although the ubiquitous
iPad changed how personal computing is experienced. Perhaps,
not so new was Manny Pacquiao’s continued dominance in his
sport.
Amid this dynamic and exciting backdrop, the stock market’s
own knockout performance last year was powered by a favorable
investment landscape both locally and globally.
The Philippine Stock Exchange, Inc. 2010 Annual Report
“The Exchange’s structural initiatives
and operational improvements
should give various stakeholders
confidence that the PSE is moving
in the right direction.”
Gross Domestic Product grew by 7.3 percent in 2010 due to the
robust performances of the industry and services sectors. Inflation
and interest rates remained benign, contributing to growth in the
real sector and the attractiveness of equities. These factors have
largely buoyed stock market sentiment and reinforced investor and
business confidence.
Overall, the major global stock markets were on an uptick last
year, thus improving capital market conditions.
The PSE index (PSEi) surged 37.6 percent or 1,148.46 points to
end at 4,201.14 in 2010. Last November 4, the PSEi closed at
a new historic high of 4,397.30 points as the market continued
to benefit from the country’s economic fundamentals, and the
general optimism by foreign investors towards Asian economies.
Total value turnover in 2010 reached P1.2 trillion, 21.5 percent
higher than the P994.1 billion registered in 2009. The combined
market capitalization of listed issues in the PSE at yearend rose by
47.1 percent to P8.9 trillion compared with P6.0 trillion in 2009.
2 3
Foreign investors remained bullish on our listed companies’
prospects, as foreign transactions went into net buying
territory in the amount of P35.6 billion, significantly
higher than the net buying figure of P14.9 billion in 2009.
Total capital raised was P84.9 billion due largely to the
initial public offerings of Cebu Air, Inc., Nickel Asia
Corporation and IP Converge Data Center, Inc. as well
as stock rights offerings of First Gen Corporation, SM
Development Corporation and Bank of the Philippine
Islands. The new issue volume was about 2.5 times more
than what was done the previous year.
The market’s bull run also reinforced the strategies we
devised to boost market activity.
Our strategy utilized the framework of the LEVEL UP
agenda that was crafted as a medium-term roadmap
for the Exchange. However, with the realities of scarce
resources, limited time, and legacy issues, we approached
the challenges in a prioritized manner. Our focus fit
into two categories: the short-term hits but high-impact
activities; and for the medium-term, initiatives towards
structural change and new products.
Operational Quick Hits
These priorities were the items in our strategic agenda that
had an immediate impact on the day-to-day operations of
the Exchange. They also set the tone for the intermediate
changes we were expecting to make.
On July 26, the PSE successfully rolled out PSEtrade, the
new trading system allowing us to leapfrog into the next
century.
The PSE migrated to the NSC V900 trading platform of
NYSE Technologies, the commercial technology division
of NYSE Euronext. Replacing the legacy MakTrade
system used since the 1990s, PSEtrade’s innovative trading
infrastructure will enhance PSE’s product range, trading
performance and volume capacity. It will also give investors
direct access to a wider range of cash, debt, and derivative
instruments from one single platform. The successful
migration to the new trading platform has allowed PSE to
handle larger trading volumes and process trades 10 times
faster than the previous system. In addition to delivering
exceptional speed and system-wide reliability, the new
trading platform will provide outstanding value to PSE
market participants and set new benchmarks in terms of
scalability, capacity, ultra-low latency, new functionalities
and resiliency.
The new trading platform also complements our plans to
strengthen trading links with the ASEAN markets and paves
the way for our plan to extend trading hours in the future.
Moreover, the PSE completed the transfer of its principal
office and employees to Makati City – the financial district
of the country – through an office integration project that
aimed to increase the efficiency of resources and reduce costs
to effectively enhance shareholder value.
Medium-term structural changes
For the medium-term, the PSE accelerated preparations
towards structural change and new products.
Among the most notable structural changes was the PSE
Board’s approval to the spin-off of the Exchange’s market
regulation division into an independent and self-regulatory
company to monitor activities of trading participants.
The ASEAN Trading Linkage has been another main project
of the Exchange, together with the other ASEAN exchanges.
The linkage aims to provide a common electronic gateway
to ASEAN exchanges to explore cross-border trading by
encouraging flow from retail investors in various countries and
providing access to other ASEAN nations’ equity issues, using
their local currency. Works on market operations, technology,
business development and regulations have been initiated and
are ongoing.
In the aspect of corporate governance, the PSE launched
its Corporate Governance Guidelines for listed firms. These
guidelines help govern the relationships among the Board,
management and shareholders of companies. The PSE is also
working on the establishment of a listing segment called the
Maharlika Board that will distinguish and promote companies
subscribing to higher standards of corporate governance.
In summary, the Exchange’s structural initiatives and
operational improvements should give various stakeholders
confidence that the PSE is moving in the right direction.
The ability to provide an appropriate trading platform,
improvements in corporate governance, and new product
opportunities in a global environment of expansion should
bode well for the market.
Looking at the PSE as a publicly traded stock for the medium-
to long-term, we continue to study our own business model
– and hope to be responsive to our own stakeholders in our
commitment towards building a world-class Exchange.
Charging to New Highs

The Philippine Stock Exchange, Inc. 2010 Annual Report
Lastly, our achievements in the recent years could not have
been possible without your guidance and support as our valued
stakeholders, trading participants, partners, and colleagues in
the PSE. We believe in this partnership which has created an
extra P1.6 billion in wealth for PSE shareholders, and a total
of P8.9 trillion for Philippines, Inc.
We sincerely thank you for your continued faith and support in
our initiatives as we take a larger share in building a stronger
economy and a stronger nation.
New Chairman
On January 12, 2011, the PSE welcomed its new Chairman,
Atty. Cornelio T. Peralta who has been a member of the PSE
Board as an Independent Director from 2004 to 2008 and
2010. He is also the Chairman of the Market Integrity Board
which exercises regulatory oversight and review powers over
the Exchange’s Market Regulation Division. I am confident
that as I turn over the reins of the PSE to Atty. Peralta after
assuming my new responsibility as President and CEO of the
Exchange, he will continue to pursue the reforms needed to
bring the PSE to greater heights.
We would also like to express our appreciation to Val for his
immense contribution and many sacrifices for the Exchange.
We wish him all the best in his future endeavors.
Thank you very much.
Hans B. Sicat
Chairman
4 5
A New
Perspective
NEW CHAIRMAN’S MESSAGE
Dear Shareholders,
I would like to express my sincere gratitude to the
members of the PSE Board of Directors for their
trust and confidence. I firmly believe that the PSE
is on the right track in becoming a world class
exchange. Its Board, management and employees
are committed to boosting the bourse’s performance
in the region through its present initiatives.
I believe that the PSE is poised to take off with its advancements
in technology and governance. In 2010, we have seen huge
improvements in the PSE’s performance as a result of such reforms.
The path to success however is never without challenges. As we
continue to develop, other exchanges in the region are developing
at a much faster pace. The strategy is no longer just merely playing
catch up but to blaze the trail as we look towards innovation and a
greater cooperation among exchanges in the region. It is my firm
belief that with your support, our stakeholders, we will continue on
towards the path of excellence we have endeavored to achieve in
recent years.
I look forward to playing a larger role in building a better Exchange
and in developing our capital markets.
Thank you for your faith and support.
Atty. Cornelio T. Peralta
Chairman
January 12, 2011
Charging to New Highs
In Step with
Technology
PRESIDENT’S MESSAGE
Dear Shareholders,
The Philippine Stock Exchange’s initiatives to
introduce advanced technology and upgrade
trading systems highlighted the stock market’s
brilliant performance in 2010.
The Exchange’s new trading system, commonly known as
PSEtrade, was launched successfully last July 26 after months of
intensive market trading rehearsals and backroom preparations.
As a result of the hard work and support of our trading
participants and the PSE’s technology team, PSEtrade’s timely
launch has largely contributed to more executed trades and
higher trading volumes. The new trading system, developed by
NYSE Technologies, is designed to trade in the future a wide
range of cash, debt and derivative instruments as well as improve
the capacity of the Exchange to handle any future sharp increases
in its value turnover. This investment in technology has placed
the Exchange in step with advanced stock exchanges around the
world and has prepared PSE to address the demands of a growing
capital market.
At the start of the year, the PSE index hit record highs supported
by positive economic fundamentals and optimism in national
elections and a new government.
By the end of 2010, the PSE soared by 37.6 percent or 1,148.46
points to 4,201.14, and recorded a new index high of 4,397.30
points for the year. Average daily value turnover also surged by
20.5 percent to P5 billion in 2010 from P4.1 billion in 2009.
Our local investor base continued to buoy the stock market as
domestic trades accounted for 61.9 percent of total trades for
the year. Meanwhile, foreign investors were net buyers at P35.6
billion from P14.9 billion in 2009.
The strong growth in stock prices boosted domestic market
capitalization by 72.7 percent to P6.9 trillion from P4 trillion in
2009.
Capital generated from the stock market improved dramatically
from the increase in initial public and stock rights offers in 2010.
The Philippine Stock Exchange, Inc. 2010 Annual Report
“ This investment in technology has
placed the Exchange in step with
advanced stock exchanges around
the world and has prepared PSE to
address the demands of a growing
capital market. ”
Amid this favorable backdrop, we are pleased to report that the
return of the bulls to the stock market boosted PSE’s consolidated
net income by 101 percent to P417.5 million from P207.7 million
in 2009 due to more company listings and increased trading
volume of stocks.
Consolidated revenues spiked 50 percent to P938.0 million from
P624.4 million in the same period the previous year. Listing-related
income surged by 99 percent to P401.9 million from P202.1 million
in 2009. The companies that listed shares during the year included
Integrated Micro-Electronics, Inc. and IP E-Game Ventures Inc.
which listed by way of introduction; Petron Corporation and
San Miguel Corporation which listed new preferred shares; and
Cebu Air Inc., IP Converge Data Center, Inc. and Nickel Asia
6 7
Corporation through an initial public offering (IPO). We are
pleased to note that Cebu Air’s P26.9 billion IPO was the largest
international low-cost carrier offered globally at the time of
listing, while San Miguel’s P65.5 billion preferred share listing was
the biggest in the history of the Exchange.
Trading-related fees also grew by 27 percent to P176.0 million.
With the roll-out of PSEtrade, average daily volumes climbed by
47 percent to P6.0 billion from July 26 to December 30, 2010
after trading by only an average of P4.1 billion per day prior to
the launch.
Operating expenses on the other hand rose 17.5 percent to P407.2
million due to the increase in major expenses such as manpower
cost, depreciation mainly from the installation of the new trading
system as well as repairs and maintenance.
With the completion of the office integration project and transfer
of the PSE’s principal office to the financial district of Makati
City last year, your Board and management have increased the
efficiency of resources and reduced costs in order to enhance
shareholder value.
With these initiatives in place, earnings per share also improved to
P13.66 per share from P6.81 per share in 2009. The PSE’s stock
price also reached its highest closing level at P430 per share by
the end of 2010, from the previous highest closing level of P345
per share in 2009.
LEVEL UP
Our action plans at the PSE are guided by the LEVEL UP agenda
that provides management both the short and long-term strategies
to manage the Exchange. LEVEL UP stands for List more
companies and securities; Expand and educate the investor base;
Value and enforce corporate governance standards; Enhance
shareholder value; Launch new products and services; Upgrade
market infrastructure and human resources; and Partner with
government and other stakeholders.
The year 2010 is the third year under the LEVEL UP agenda
which features several significant milestones in market regulation,
corporate governance, market education, investor relations and
market infrastructure to name a few.
The Real Estate Investment Trust Act became a law and is widely
anticipated to usher REITs as fresh listings on the bourse. The
future implementation of the Personal Equity and Retirement Act
or PERA, on the other hand, is expected to increase individual
savings and contribute to increased trading volumes on the
Exchange. New listing and trading rules and corporate governance
initiatives seek to protect investors, promote transparency and spur
investor confidence in trading of our listed companies. And our
collaborative efforts with the ASEAN stock exchanges will one day
usher in cross-border trading and promote ASEAN as a significant
asset class. PSE continues to dialogue with the government on
enhancing and developing our capital markets through these and
many other reforms and initiatives.
While your Exchange is a cornerstone of the country’s capital
market, it is also a thriving business well aware of its corporate
social responsibilities. In this regard, the Exchange continues to
support the PSE Foundation, a non-profit organization engaged
in stock market education and support of capital market related
activities. PSE management and staff also participated for the
first time in a Christmas activity for the young orphans of White
Cross – one of several beneficiaries we hope to support regularly.
New CEO
On January 12, 2011, the PSE welcomed its new President
and Chief Executive Officer, Hans B. Sicat, who is no stranger
to the Exchange having been its Chairman of the Board since
2009. He is a strong advocate of Good Corporate Governance
and proponent of the Exchange’s initiatives. With more than 20
years experience in investment banking, Hans brings a wealth of
knowledge and management skills to the Exchange. The PSE is
indeed in very good hands.
Finally, on a personal note, I would like to express my gratitude to
the PSE and the Board of Directors for granting me the distinct
honor and privilege to serve as President and Chief Executive
Officer. I would also like to express my sincerest admiration to
the management for their professionalism and the staff for their
dedication to the institution. Rest assured that the PSE, its board,
management, staff and stakeholders have my full support and
faith as they move ahead to carry the Exchange towards a brighter
future.
Thank you again for your kind support.
Atty. Val Antonio B. Suarez
President & Chief Executive Officer
Charging to New Highs
 Fig. 1: Philippine Stock Market Performance in 2010

A Sustained Rally
OCTOBER
OFW remittances DECEMBER
post highest monthly PSEi ends the
AUGUST growth at 10.6%
5000 PSEi breaks year with 38%
APRIL through growth; third
IMF raises GDP 3,500-level, best in Asia
STOCK MARKET PERFORMANCE forecast for the
Philippines to 3.6%
closing at
3,503.49 points
4500 on August 4
MARCH GDP for the
PSEi breaks through 2nd quarter was
3,200-level, closing higher at 8.2%
at 3,202.17 points on
4000 March 30.
JUNE
The Philippine stock market as reflected by the Sound Local Fundamentals JANUARY
GDP growth Philippine external 15th President of
NOVEMBER
trade expands the Philippines
PSE index (PSEi) exceeded expectations and The country’s macroeconomic fundamentals also sustained the
in 2009
slows down 35.6% in January on takes office PSEi hits a new record
at 4,397.30 as US Fed
3500 improving demand
outperformed many of its peers in Asia amid a stock market’s bullish prospects. Gross Domestic Product (GDP), to 1.1% from
3.7% in 2008 SEPTEMBER
bares plan to buy
US$600 billion long-
the measure of total economic output, surged to 7.3 percent, the
global economy struggling to emerge from the country’s highest growth rate since 1976. The local economy posted
PSEi records
consecutive
term treasuries

recession of 2008 to 2009.
The benchmark PSEi added 1,148.46 points in 2010 to close at
4,201.14 points, 37.6 percent higher than its end-2009 level and
making it the third best performing index in Asia at yearend. The
year 2010 also proved to be historic as the PSEi surpassed its
previous high of 3,973.50 set last October 8, 2007. The PSEi
continued to break new ground since, hitting its highest mark of
4,397.30 on November 4.
Table 1: PSEi vs. Select Asian Indices, 2010
Country/Nation Stock index
End-December % Change
2010 Year-on-Year
Indonesia Jakarta Composite Index 3,703.51 46.1
Thailand SET Index 1,032.76 40.6
Philippines PSE Index 4,201.14 37.6
South Korea KOSPI Index 2,051.00 21.9
Malaysia Kuala Lumpur Composite Index 1,518.91 19.3
India NSE India S&P CNX Nifty 6,134.50 17.9
India BSE Sensex 20,509.09 17.4
Singapore Straits Times Index 3,190.04 10.2
Taiwan Taiwan Taiex Index 8,972.50 9.6
China Shenzhen Composite Index 1,290.87 7.5
Hong Kong Hang Seng Index 23,035.45 5.3
Japan TOPIX Index 898.80 -1.0
Japan Osaka 300 Common Index 981.06 -2.7
China Shanghai Composite Index 2,808.08 -14.3
But despite these remarkable figures, there were risks to the
recovery of the local stock market. At the beginning of the year,
the country faced the possibility of a “no-election” or “no-el”
scenario that weighed heavily on market confidence. This pulled
the PSEi down by 8.4 percent through mid-February, bottoming
out at 2,797.61 points on February 9. Coincidentally, the date
marked the official start of the Presidential campaign. As the
campaign rolled out, fears of “no-el” were effectively cast aside.
Investors began to regain confidence following the successful
outcome of the national elections and the inauguration of
the 15th President of the Republic of the Philippines in the
succeeding months. The new-found optimism overshadowed the
dismal performance of the local economy in 2009 and improved
market sentiment. Business activity also picked up, translating to
better earnings for listed companies. In the nine months ending
September, the total net income of listed companies reached
P342.02 billion, an increase of 20.0 percent from P285.01 billion
in the same period in 2009. (Figures were gathered from 236 out
of 253 listed companies, whose interim financial reports for the
said period were submitted to the PSE as of December 15.)
higher growth rates on the back of increased global demand for
export of goods and services, personal consumption and election-
related spending. Government expenditures were kept at low levels
as the new administration aimed to achieve fiscal balance without
resorting to raising tax and foreign borrowings. The government’s
fiscal position finished with a deficit of P314.40 billion at the end
of the year, slightly lower than the programmed deficit of P325
billion but 5.3 percent more than the previous year’s P298.50
billion deficit.
The inflation environment also remained favorable as price
increases of commodities were subdued throughout the year.
Headline inflation rate averaged 3.8 percent, slightly higher
than the 3.2 percent average inflation in 2009. During the year,
the headline inflation rate hit an 11-month low of 2.8 percent
in October, giving the Bangko Sentral ng Pilipinas (BSP) enough
elbow room to maneuver monetary policy. The BSP, however,
opted to keep its policy rates at their levels since July 2009,
around the period when the US-led crisis struck worldwide. The
low overnight borrowing and lending rates, which remained
unchanged at 4.0 percent and 6.0 percent, respectively, helped
sustain the local economy’s growth.
The appetite for government securities waned as yields declined
due to investor optimism toward the new administration and the
economy. The average rate of the benchmark 91-day Treasury
bill fell to an all-time low of 0.78 percent at the end of the year as
compared with the 4.19 percent average in 2009. The government’s
successful offering of US$1 billion peso-denominated bonds at the
global market was 13 times oversubscribed and attracted investors
from Asia, Europe and US.
Trades at the foreign exchange market were also upbeat. The
Philippine peso, along with other Asian currencies, gained against
the US dollar owing in part to a weak US economy. The peso
finished at P43.84, stronger by P2.36 or 5.1 percent from the
close of P46.20 last year. This was the highest exchange rate the
peso achieved since finishing at P42.71 on May 14, 2008. The
continued flow of foreign capital as well as remittances from
overseas Filipino workers also strengthened the peso.
This economic landscape augured well for the Philippines as seen
in the upward revision of financial and economic projections
made by several multilateral institutions. The country also earned,
for the first time in 13 years, a rating upgrade from Standard
& Poor’s. S&P raised the country’s long-term foreign currency
denominated debt to BB from BB-, citing the Philippines’ strong
external position and fiscal consolidation.
3000
JULY
run-ups,
starting
GDP slows down
to 6.5% in the 3rd
MAY IMF revises September quarter
Successful turnout
for electronic
GDP forecast 9 when it
for the closed at Peso reaches two-
FEBRUARY national elections Philippines to 3,902.56 year high
2500 PSEi records lowest 6.0%, citing
level for the year IMF and EU strong GDP
on election worries, provide US$146.2 numbers
closing at 2,797.61 billion bail-out
on February 9 package for Greece
2000
GDP posts 7.8%
growth in the 1st
quarter
1500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Global Developments
While all these painted an optimistic outlook toward recovery, first round of QE did not result in robust growth. The US Fed
the local economy was not left unscathed by developments on the thus implemented a second round of QE in August to purchase an
international front. In May, Greece announced its need to address
additional US$600 billion worth of long-term Treasury securities
a ballooning debt which could befall the government. Several by the end of the second quarter of 2011.
months later, Ireland was faced with the same problem, bringing
to fore worries on debt-stricken European states. In response to
these financial difficulties, the International Monetary Fund and The biggest concern that surfaced at the close of the year was
the European Union provided a timely bail-out package in billions China’s inflation, which had risen at a 5.1 percent pace in
of Euros to save the aforementioned ailing economies. November. The alarming inflation level forced the People’s Bank
of China to shift to a more restrictive stance, raising its bank
reserve requirements by 50 basis points during the Christmas
The Dow Jones Industrial Average (Dow) managed to keep above
the 10,000-level in 2010 except for a brief period of breaches season.
below 10,000 in June and July. It was in July when US stocks closed
at its lowest level for the year at 9,686.48 points. By September, Oil prices, based on the US Department of Energy All Countries
there was no doubt about the strength of US stocks, challenged Average, continued to trek upwards, ending 2010 at its highest
only in early November by Ireland’s debt problems. The Dow
since October 2008, from a low of US$67.91 per barrel in the
finished 2010 with an 11.1 percent gain, closing at 11,577.50. US
week ending May 28. Heightened risk aversion also pushed
economic numbers, particularly on the housing front, received
a much needed boost from a tax incentive for home buyers. commodities and metal prices to historic levels. The price of
Meanwhile, the extension of the Bush-tax cuts, among other Commodity Exchange (COMEX) gold soared to an all-time high
stimulus measures kept in place, is expected to provide support for of US$1,410.10 an ounce at the New York Mercantile Exchange
(NYMEX) on November 9 on concerns about the European debt
the improving numbers in the US economic data series.
crisis, among other factors. This was followed by the price of crude
oil futures closing at a 25-month high of US$87.81 per barrel
The US Federal Reserve (US Fed) resorted to quantitative easing on the NYMEX, driven by the heavy drawdown in US crude
(QE) or a process of boosting money supply, after aggressive cuts inventories as well as inflationary concerns on the anticipated
in the target rates failed to spur the economy to life. Likewise, the monetary easing by the US Fed.

The Philippine Stock Exchange, Inc. 2010 Annual Report 8 9 Charging to New Highs
Landmarks &
Milestones
OPERATIONAL HIGHLIGHTS

The LEVEL UP Strategic Plan

LEVEL UP
LIST MORE COMPANIES & SECURITIES

The Exchange continues to implement its LEVEL UP agenda, a five-year

strategic plan that is focused on improving its operations and performance
Companies raise P85 billion from the stock market
to be at par with international best practices. SEC okays REIT Listing Rules, Philippine Mineral Reporting Code IRR
Specifically, the strategic plan highlights the seven key objectives of the
Exchange starting from 2008 until 2012. The Exchange is guided by the New Listings and Capital Raised Foreign Trading
LEVEL UP objectives in achieving its maximum potential as a preferred Total capital raised was P84.94 billion in 2010 due largely to Foreign investors continued to dominate trading activity in the
venue for raising capital and also as an institution that can contribute to the initial public offerings of Cebu Air, Inc., Nickel Asia and market as total transactions netted a buying of P35.62 billion, an
the development of the local economy. IP Converge Data Center, Inc., follow-on offering of Petron increase of 138.8 percent than P14.92 billion the previous year.
Corporation, and stock rights offerings of First Gen Corporation, Total foreign buying amounted to P477.38 billion, while total
SM Development Corporation and Bank of the Philippine Islands. foreign selling came in at P441.76 billion. The share of foreign
L: list more companies and securities
This was an improvement over the P38.77 billion raised in 2009. trading to total trading slightly went up to 38.1 percent from
E: expand and educate the investor base 32.4 percent. This was significantly lower than the percentage
V: value and enforce corporate governance standards share recorded in the past four years, indicating the growing
E: enhance shareholder value Trading Transactions participation of local investors.
The total value of trades in 2010 posted a remarkable expansion
L: launch new products and services
that surpassed the P1-trillion level. Total value turnover grew by
21.5 percent to P1.21 trillion from P994.15 billion a year earlier. Market Capitalization
U: upgrade market infrastructure and human resources This was the second highest total value turnover recorded since Total market capitalization reached a new record of P8.87 trillion,
P: partner with government and other stakeholders trading activity hit the P1.34 trillion level in 2007. Meanwhile, a 47.0 percent growth from P6.03 trillion the previous year.
average daily turnover rose to P4.95 billion, a 20.5 percent increase Domestic market capitalization, which excludes foreign firms Sun
from P4.11 billion in 2009. Life Financial Inc. and Manulife Financial Corporation, rose by

Fig. 2: Summary of 2010 Capital Table 2: Initial Public Offerings in 2010

Raising Activities
Company Code Listing Date Offer Price No. Of Shares Offered Offer Proceeds
(in Php) (in Php)

P12.78 billion P10.00 billion Integrated Micro- IMI 21-Jan-10 6.24** NA NA

IPO (Primary Follow-On Electronics, Inc.*
Offerings) (Primary Offerings)
IP E-Game EG 17-Feb-10 50.00** NA NA
Ventures, Inc.*

Petron Corporation PPREF 05-Mar-10 100.00 50,000,000 5,000,000,000.00

Preferred*** PPREF1 05-Mar-10 100.00 50,000,000 5,000,000,000.00

Cebu Air, Inc. CEB 26-Oct-10

Primary Offering 125.00 30,661,800 3,832,725,000.00
Secondary Offering 125.00 155,975,400 19,496,925,000.00
CEB1 26-Oct-10 125.00 27,995,600 3,499,450,000.00

Nickel Asia NIKL 22-Nov-10 15.00 304,500,000 4,567,500,000.00

Corporation NIKL1 22-Nov-10 15.00 45,675,000 685,125,000.00

IP Converge Data CLOUD 09-Dec-10 4.20 45,466,667 190,960,001.40

Center, Inc.
P51.89 billion P10.28 billion
Stock Rights Private Placements TOTAL INITIAL PRIMARY OFFERING PROCEEDS 22,775,760,001.40
Offerings TOTAL INITIAL SECONDARY OFFERING PROCEEDS 19,496,925,000.00
TOTAL INITIAL OFFERING PROCEEDS 22,775,760,001.40
*Listing by Way of Introduction **Listing price ***Follow-on offering over-allotment
1

The Philippine Stock Exchange, Inc. 2010 Annual Report 10 11 Charging to New Highs
 Table 5: Domestic Market Capitalization and Trading Value by Sector (in Php billion)
Table 3: Select PSE Market Indicators (in Php billion) Table 4: Annual Growth Rate of Sector Indices
M arket Capitalization Value Traded
2006 2007 2008 2009 2010 2010 vs 2009 2009 2010 %change %share 2009 2010 %change %share
% change Index 2009 2010 %change
Financials Sector 565.48 833.62 47.4 12.1 79.24 159.90 101.8 13.2
PSE Index (PSEi), yearend close 2,982.54 3,621.60 1,872.85 3,052.68 4,201.14 37.62 All Shares 1,918.64 3,006.42 56.7
Banks 520.91 783.95 50.5 11.4 74.81 156.00 108.5 12.9
Financials 669.97 961.47 43.5 Other Financial Institutions 44.85 50.16 11.8 0.7 4.43 3.90 -12.0 0.3
Total value traded (in Php billion) 572.63 1,338.25 763.90 994.15 1,207.38 21.45 Industrial 4,628.69 7,220.61 56.0
Average daily value traded (in Php billion) 2.32 5.48 3.11 4.11 4.95 20.45 Holding Firms 1,611.52 3,388.74 110.3 Industrial Sector 1,109.75 2,510.47 126.2 36.4 453.61 375.98 -17.1 31.1
Electricity, Energy, Power & Water 552.46 930.45 68.4 13.5 179.72 276.28 53.7 22.9
Property 1,076.32 1,582.47 47.0
Foreign buying (in Php billion) 348.97 680.33 361.00 329.28 477.38 44.97 Food, Beverage & Tobacco 459.92 1,292.61 181.1 18.8 266.78 89.97 -66.3 7.5
Services 1,508.92 1,590.40 5.4 Construction, Infrastructure 67.65 169.07 149.9 2.5 3.80 7.79 105.3 0.6
Foreign selling (in Php billion) 280.48 624.76 383.17 314.37 441.76 40.52
Mining and Oil 10,762.84 13,947.58 29.6 & Allied Services
Net foreign buying/(selling) (in Php billion) 68.49 55.57 (22.16) 14.92 35.62 138.84 Chemicals 12.09 12.32 1.9 0.2 0.44 0.42 -4.1 0.0
Total foreign (in Php billion) 629.46 1,305.09 744.17 643.65 919.13 42.80 Diversified Industrials 17.64 106.03 501.2 1.5 2.87 1.52 -47.0 0.1
Share of Foreign trading to Total Trading 54.96 48.76 48.71 32.37 38.06 17.58
Holding Firms Sector 635.93 1,277.81 100.9 18.5 112.09 231.10 106.2 19.1
Capital Raised (in Php billion) 57.23 90.13 31.55 38.77 84.94 119.11
Initial Public Offerings (in Php billion) 19.02 18.91 1.95 0.02 12.78 63744.44 Property Sector 499.48 752.50 50.7 10.9 105.23 171.80 63.3 14.2
Additional Listings (in Php billion) 38.20 71.23 29.60 38.75 72.16 86.25
Services Sector 996.67 1,116.04 12.0 16.2 161.35 192.72 19.4 16.0

Media 50.62 60.86 20.2 0.9 4.90 8.26 68.7 0.7
Market capitalization, yearend (in Php billion) 7,173.19 7,977.61 4,069.23 6,029.08 8,866.11 47.06 Telecommunications 726.77 691.07 -4.9 10.0 124.18 108.71 -12.5 9.0
Domestic firms (in Php billion) 3,352.35 4,266.82 2,474.05 3,991.93 6,892.21 72.65 Information Technology 39.57 37.72 -4.7 0.5 14.51 8.46 -41.7 0.7
Foreign firms (in Php billion) 3,820.84 3,710.79 1,595.17 2,037.15 1,973.90 -3.10 Transportation Services 120.11 258.65 115.3 3.8 8.57 62.88 633.4 5.2
Hotel & Leisure 8.34 10.81 29.6 0.2 1.75 1.27 -27.5 0.1
No. of Listed Companies, yearend 239 244 246 248 253 2.02 Education 13.24 14.09 6.4 0.2 0.49 0.16 -68.2 0.0
Domestic 237 242 244 246 251 2.03 Diversified Services 38.21 42.90 12.3 0.6 6.95 2.99 -57.0 0.2
Foreign 2 2 2 2 2 0.00
Mining & Oil Sector 187.23 401.23 114.3 5.8 82.62 75.88 -8.2 6.3
No. of Listed Issues, yearend 313 314 316 318 328 3.14
Mining 151.46 347.39 129.4 5.0 81.38 75.08 -7.7 6.2
Domestic 311 312 314 316 326 3.16 Oil 35.77 53.83 50.5 0.8 1.23 0.81 -34.7% 0.1
Foreign 2 2 2 2 2 0.00
SME 0.34 0.55 63.6 0.0 0.20 0.12 -41.4 0.0
Total Market
Dividend Yield 2.09 2.33 5.42 3.52 2.64 -24.96 Total Domestic Issues 3,991.93 6,892.21 72.7 100.0 994.07 1,207.25 21.4 100.0
Price-Earnings Ratio 15.52 14.17 8.95 23.26 21.32 -8.32
Domestic Issues 3,995.07 6,892.21 72.5 100.0 994.07 1,207.25 21.4 99.99
Foreign Issues 2,037.15 1,973.90 -3.1 28.6 0.08 0.14 67.4 0.01
Total Market 6,032.22 8,866.11 47.0 128.6 994.15 1,207.38 21.4 100.0
72.5 percent to P6.89 trillion from P3.99 trillion. The industrial requirement: 33 percent for market capitalization (market cap)
sector accounted for 36.4 percent of the domestic market not exceeding P400 million; 25 percent for market cap over P400 Table 6: 2010 Market Activity
capitalization in the amount of P2.51 trillion. million to P1 billion; 20 percent for market cap over P1 billion to
P5 billion; 15 percent for market cap over P5 billion to P10 billion Sector No. of Issues Actively Traded Gainers Losers Unchanged
and 10 percent for market cap over P10 billion. The 10 percent
Performance of Sector Indices amended MPO Rule applicable to the existing listed companies
Financials
Industrial
35
77
28
60
21 5 2
44 15 1
All PSE sector indices registered positive growth in 2010. The is independent of the current minimum offering to the public Holding Firms 47 42 28 12 2
requirement for initial listing applications. Property 47 40 31 7 2
holding firms sector was the biggest gainer, with its index surging Services 90 79 51 22 6
by 110.3 percent. This was followed by the industrial sector, Mining & Oil 30 29 15 12 2
which grew by 56.0 percent; property sector, by 47.0 percent; SME 2 2 2 0 0
The reinstatement of and amendment to the MPO Rule as Total Number of Issues 328 280 192 73 15
financials sector, by 43.5 percent; mining and oil, by 29.6 percent; a continuing listing requirement is in line with the Philippine
and services sector, by 5.4 percent. The broader all-shares index Capital Market Development Plan, which aims to provide a fair Table 7: Top 25 Companies by Value Traded (Regular Market)
meanwhile increased to 3,006.42, a 56.7 percent improvement and efficient facility for price discovery and to ensure that sufficient
from 1,918.64 a year earlier. Value Traded
liquidity exists. This is also aligned with the goals of the PSE to be Rank Company Name
Code (Regular Market in Php)
at par with the rest of the regional exchanges and to help address
Reinstatement of and Amendment to liquidity issues in the local capital markets. Securities exchanges 1 Philippine Long Distance Telephone Company “Common” TEL 81,898,422,817
the Rule on Minimum Public Ownership in Hong Kong, Singapore and Thailand already impose minimum 2 Metropolitan Bank & Trust Company MBT 52,832,735,063
as a Continuing Listing Requirement float requirements of between 10 and 25 percent.
3
4
Aboitiz Power Corporation
Energy Development Corporation
AP
EDC
46,525,636,125
45,490,584,480
The PSE announced that the amended Minimum Public 5 Alliance Global Group, Inc. AGI 40,742,968,813
Ownership (MPO) Rule would be effective starting on November 6 SM Investments Corporation SM 39,531,955,765
The amended MPO Rule provides for, among others, specific 7 Megaworld Corporation MEG 35,889,139,290
30, after securing the approval from the Securities and Exchange 8 Ayala Land, Inc. ALI 35,472,072,438
disclosure requirements and sanctions in the event a listed
Commission (SEC). The amended MPO Rule states that listed 9 Ayala Corporation AC 35,057,510,873
company fails to comply with the minimum ten (10) percent public
companies, at all times, must maintain a minimum percentage 10 Banco de Oro Unibank, Inc. BDO 31,900,811,434
float level. A non-compliant company is allowed a 12-month 11 Metro Pacific Investments Corporation MPI 27,270,762,290
of listed securities held by the public of ten percent (10%) of the grace period to comply. Otherwise, the Exchange shall charge 12 DMCI Holdings, Inc. DMC 26,458,330,983
listed company’s issued and outstanding shares, exclusive of any additional annual listing maintenance fees calculated based on 13 SM Prime Holdings, Inc. SMPH 25,252,330,257
treasury shares. the percentage shortfall in the public float and the period of non- 14 Universal Robina Corporation URC 24,210,491,560
15 First Philippine Holdings Corporation FPH 22,586,685,808
compliance. Should a listed company be non-compliant for 3 16 Bank of the Philippine Islands BPI 22,110,517,912
consecutive years after the 12-month grace period, the Exchange 17 Philippine National Bank PNB 18,987,901,446
The MPO Rule as a continuing listing requirement has passed
shall suspend the trading of the listed company’s securities and 18 First Gen Corporation FGEN 18,844,865,097
through several debates across the terms of various boards of 19 International Container Terminal Services, Inc. ICT 18,525,918,070
shall initiate delisting procedures.
directors of the PSE. Hence, the MPO Rule was not always 20 Aboitiz Equity Ventures, Inc. AEV 17,057,387,180
enforced as a continuing listing requirement. Prior to the 21 Filinvest Land, Inc. FLI 15,895,566,030
22 Manila Electric Company MER 14,640,088,935
implementation of the amended MPO Rule, only the following PSE data as of end-December 2010 show that about 82 percent 23 Cebu Air, Inc. CEB 14,261,062,751
MPO requirements were put into effect as an initial listing or 208 companies are compliant with the 10 percent MPO rule. 24 Globe Telecom, Inc. GLO 14,050,444,350
25 Robinsons Land Corporation RLC 12,984,981,299

The Philippine Stock Exchange, Inc. 2010 Annual Report 12 13 Charging to New Highs
Table 8: PSEi Recomposition
Results of Recomposition 2010 Close 2009 Close
as of May 11, 2010 as of November 8, 2010
1 Aboitiz Equity Ventures, Inc. 1 Aboitiz Equity Ventures, Inc.
2 Aboitiz Power Corporation 2 Aboitiz Power Corporation
3 ABS-CBN Broadcasting Corporation 3 ABS-CBN Broadcasting Corporation
4 Alliance Global Group, Inc. 4 Alliance Global Group, Inc.
5 Ayala Corporation 5 Ayala Corporation
6 Ayala Land, Inc. 6 Ayala Land, Inc.
7 Banco de Oro Unibank, Inc. 7 Banco de Oro Unibank, Inc.
8 Bank of the Philippine Islands 8 Bank of the Philippine Islands
9 China Banking Corporation 9 China Banking Corporation
10 Energy Development EDC Corporation 10 DMCI Holdings, Inc.
11 Filinvest Land, Inc. 11 Energy Development EDC Corporation
12 First Philippine Holdings Corporation 12 Filinvest Land, Inc.
13 Globe Telecom, Inc. 13 First Gen Corporation
14 GMA Network, Inc. 14 First Philippine Holdings Corporation
15 International Container Terminal Services, Inc. 15 Globe Telecom, Inc.
16 Jollibee Foods Corporation 16 International Container Terminal Services, Inc.
17 Lepanto Consolidated Mining Company 17 JG Summit Holdings, Inc.
18 Manila Electric Company 18 Jollibee Foods Corporation
19 Manila Water Company, Inc. 19 Lepanto Consolidated Mining Company
20 Megaworld Corporation 20 Manila Electric Company
21 Metro Pacific Investments Corporation 21 Manila Water Company, Inc.
22 Metropolitan Bank & Trust Company 22 Megaworld Corporation
23 Philex Mining Corporation 23 Metro Pacific Investments Corporation
24 Philippine Long Distance Telephone Company 24 Metropolitan Bank & Trust Company
25 Robinsons Land Corporation 25 Philex Mining Corporation
26 San Miguel Corporation 26 Philippine Long Distance Telephone Company
27 Security Bank Corporation 27 Robinsons Land Corporation
28 SM Investments Corporation 28 SM Investments Corporation
29 SM Prime Holdings, Inc. 29 SM Prime Holdings, Inc.
30 Universal Robina Corporation 30 Universal Robina Corporation
Table 9: Top 25 Price Gainers
2010 Close 2009 Close and transfer of securities. The Rules are applicable to companies
Rank Issue
Code (in Php) (in Php) % change
1 UEM Development Philippines, Inc. MK 217.40 2.50 8,596.00
2 San Miguel Pure Foods Company, Inc. PF 800.00 52.06 1,436.69
3 Fil-Estate Land, Inc. LND 1.46 0.30 386.67
4 Oriental Peninsula Resources Group, Inc. ORE 3.78 0.85 344.71
5 Aboitiz Equity Ventures, Inc. AEV 37.10 9.00 312.22
6 DMCI Holdings, Inc. DMC 36.00 9.70 271.13
7 Aboitiz Power Corporation AP 31.10 8.60 261.63
8 Petron Corporation PCOR 18.82 5.30 255.09
9 Semirara Mining Corporation SCC 185.00 53.46 246.09
10 Holcim Philippines, Inc. HLCM 15.50 4.80 222.92
11 Belle Corporation BEL 4.60 1.44 219.44
12 RFM Corporation RFM 1.74 0.56 210.71
13 San Miguel Brewery, Inc. SMB 30.00 9.70 209.28
14 Alliance Global Group, Inc. AGI 12.50 4.15 201.20
15 JG Summit Holdings, Inc. JGS 19.60 6.60 196.97
16 Bogo-Medellin Milling Company BMM 90.00 32.00 181.25
17 Leisure & Resorts World Corporation LR 3.80 1.44 163.89
18 Philippine National Bank PNB 63.50 24.25 161.86
19 SM Development Corporation SMDC 9.00 3.58 151.38
20 Megaworld Corporation - Warrants2 MEGW2* 1.42 0.57 149.12
21 Phoenix Petroleum Philippines, Inc. PNX 12.36 5.00 147.20
22 Manchester International Holdings Unlimited Corporation “A” MIH 1.58 0.64 146.88
23 Filinvest Development Corporation FDC 5.05 2.08 142.79
24 Republic Cement Corporation RCM 7.30 3.05 139.34
25 San Miguel Corporation SMC 163.80 68.50 139.12 with the requirements of Section 43 of the Securities Regulation
* Newly Listed
The Philippine Stock Exchange, Inc. 2010 Annual Report 14
Table 10: Top 25 Price Losers
Rank Issue
Code (in Php) (in Php) % change
1 Century Peak Metal Holdings Corporation CPM 2.34 6.50 -64.00
2 AgriNurture, Inc. ANI 10.34 24.75 -58.22
3 Atok-Big Wedge Company, Inc. AB 42.90 100.57 -57.34
4 Marcventures Holdings, Inc. MARC 1.95 4.40 -55.68
5 Paxys, Inc. PAX 1.38 2.80 -50.71
6 Imperial Resources, Inc. “B” IMPB 4.00 8.00 -50.00
7 i-Remit, Inc. I 3.34 6.10 -45.25
8 ATN Holdings, Inc. “A” ATN 2.95 5.00 -41.00
9 ISM Communications Corporation ISM 3.90 6.50 -40.00
10 Pacifica, Inc. PA 0.0490 0.0775 -36.77
11 Federal Resources Investment Group, Inc. FED 7.00 11.00 -36.36
12 Island Information & Technology, Inc. IS 0.0470 0.0725 -35.17
13 Information Capital Technology Ventures, Inc. ICTV 0.60 0.90 -33.33
14 Asia Amalgamated Holdings AAA 0.27 0.40 -32.50
15 TKC Steel Corporation T 2.50 3.70 -32.43
16 South China Resources, Inc. SOC 1.48 2.18 -32.11
17 Highlands Prime, Inc. HP 2.00 2.90 -31.03
18 Alliance Select Foods International, Inc. FOOD 1.43 2.06 -30.58
19 DFNN Inc. DFNN 5.80 8.30 -30.12
20 Mariwasa SIAM Holdings, Inc. MMI 0.70 1.00 -30.00
21 Premiere Entertainment Philippines, Inc. PEP 0.26 0.36 -29.17
22 Wellex Industries, Inc. WIN 0.0710 0.1000 -29.00
23 IP Converge Data Center, Inc. CLOUD* 3.00 4.20 -28.57
24 Active Alliance, Inc. AAI 8.58 12.00 -28.50
25 A Brown Company, Inc. BRN 2.70 3.75 -28.00
*Newly Listed
Implementation of the Amended Rule a) Sworn corporate secretary's certificate stating that all
the securities have been issued in uncertificated form in
on Lodgment of Securities accordance with the requirements of Section 43 of the
The Securities and Exchange Commission (SEC) approved on Securities Regulation Code and electronically lodged with
February 26, 2009, the amendments to the requirements on the PDTC, or any other authorized entity, without any
lodgment of securities under section 16, Part A, Article III of the jumbo or mother certificate; and
Revised Listing Rules (the “Rules”). The amendments are in line b) Written confirmation issued by the transfer agent confirming
with the Capital Market Development Plan of the Philippines that it has the capability and capacity to handle the issuance
and transfer of uncertificated securities; and
and likewise consider international best practices on the issuance
c) Written confirmation issued by PDTC, or any other
authorized entity, confirming the electronic lodgment of the
applying for initial listing starting July 1, 2009. For existing listed applicant's securities.
companies, the Rules took effect starting July 1, 2010. For listing
applications, the Amended Rule on Lodgment of Securities is
Interpretation of the Rule on Additional
applicable to:
Listing of Shares for a Placing and
Subscription Transaction
a) The offer shares/securities of the applicant company, in the The PSE issued on April 28, 2010 its interpretation of the Rule
case of an initial public offering; on Additional Listing of Shares under the Revised Listing Rules
for a transaction where an existing shareholder or related party, as
b) The shares/securities that are lodged with the b) Philippine defined in the Rule on Additional Listing of Shares, sells its listed
Depository and Trust Corporation (PDTC), or any other shares to a third party thereby reducing the former’s holdings in
entity duly authorized by the SEC, in the case of a listing by the listed company (the “placing tranche”). As part of the same
way of introduction; transaction, the listed company subsequently issues to the existing
shareholder at most the same number of shares as the shares
c) New securities to be offered and applied for listing by an
sold (the “subscription tranche”). In this regard, the transaction
existing listed company; and
covered by such interpretation involves placing and subscription
d) Additional listing of securities of existing listed companies. tranches.
The Rules provide that as a condition for the listing and trading The interpretation aims to support listed companies in their
of the securities of an applicant company, the applicant company capital-raising activities and in their plans to widen and diversify
their shareholder base. The interpretation further provides the
shall electronically lodge its registered securities with the PDTC, parameters, guidelines and requirements that are applicable to
or any other entity duly authorized by the SEC that functions as a the transaction.
depository, without any jumbo or mother certificate in compliance
Among the listed companies that have completed their respective
Code. To enforce the Rules, actual listing and trading of securities placing and subscription transactions are Metro Pacific
on the scheduled listing date shall take effect only after submission Investments Corporation, Metropolitan Bank & Trust Company
by the applicant company of the following: and Banco de Oro Unibank, Inc.
15 Charging to New Highs
Table 11: Top 25 Companies by Trading Frequency (Regular Market)
Trading
Rank Company
Name Code Frequency

1 Megaworld Corporation MEG 113,248

2 Energy Development Corporation EDC 97,144
3 Metro Pacific Investments Corporation MPI 88,995
4 Aboitiz Power Corporation AP 81,871
5 Oriental Peninsula Resources Group, Inc. ORE 68,636
6 First Gen Corporation FGEN 67,907
7 Alliance Global Group, Inc. AGI 66,074
8 Philippine National Bank PNB 58,336
9 Metropolitan Bank & Trust Company MBT 57,352
10 Ayala Land, Inc. ALI 56,202
11 Filinvest Land, Inc. FLI 55,939
12 DMCI Holdings, Inc. DMC 54,727
13 Manila Electric Company MER 52,028
14 Philex Mining Corporation PX 49,497
15 Atlas Consolidated Mining & AT 47,201
Development Corporation
16 Lepanto Consolidated Mining Company LC 43,696
17 First Philippine Holdings Corporation FPH 43,162
18 NiHAO Mineral Resources NI 40,813
International, Inc.
19 Philippine Long Distance TEL 40,667
Telephone Company “Common”
20 Lopez Holdings Corporation LPZ 39,751
21 Bank of the Philippine Islands BPI 37,351
22 Ayala Corporation AC 36,520
23 Vista Land & Lifescapes, Inc. VLL 36,302
24 SM Prime Holdings, Inc. SMPH 36,083
25 Digital Telecommunications Phils., Inc. DGTL 34,487
Listing Rules for Real Estate
Investment Trusts (REITs)
The SEC approved on September 21, 2010 the
Listing Rules for Real Estate Investment Trusts
(REITs) which became effective on October 8,
2010. The Listing Rules for REITs were issued in
light of the requirement under Section 5 of the
Republic Act No. 9856, otherwise known as the
REIT Act of 2009, which requires that the shares
of stock of a REIT must be listed in accordance
with the rules of the PSE. The development of
REITs also allows the PSE to offer more products
to the Issuers and to the investing public.
In addition to the criteria for listing under the
rules of the PSE, a REIT must also meet the
following conditions:
The other provisions under the Listing Rules for REITs are set forth in PSE Memo No. 2010-0460 dated September 29, 2010, and
posted on the PSE website, www.pse.com.ph.
a) A REIT must be a stock corporation established in accordance
with the Corporation Code of the Philippines and the rules
and regulations promulgated by the SEC principally for the
purpose of owning income-generating real estate assets.
b) A REIT must have a dividend policy of distributing annually
at least ninety percent (90%) of its distributable income as
dividends to its shareholders in accordance with the REIT
Act of 2009 and its IRR
c) A REIT must be a public company upon and after listing,
and to be considered as such, a REIT must have at least one
thousand (1,000) public shareholders each owning at least
fifty (50) shares of any class of shares who in the aggregate
own at least one-third (1/3) of the outstanding capital stock.
d) A REIT must have a minimum paid-up capital of Php300
million.
e) At least seventy-five percent (75%) of the deposited property
of the REIT must be invested in, or consist of, income-
generating real estate.
f) At least 1/3 of the board of directors of a REIT must be
independent directors, which in no case shall be less than two (2).
g) A REIT must appoint a qualified fund manager and property
manager in accordance with the REIT Act of 2009 and its
IRR, as may be amended.
h) Directors or officers of the REIT, fund manager, property
manager, distributor and other REIT participants are
subjected to the fit and proper rule under the REIT Act of
2009 and its IRR.
i) A newly formed REIT which invokes the track record
or operating history of its income-generating real estate
assets shall submit audited financial statements and any
other supporting documents that reflect the track record
or operating history of the REIT’s income-generating real
estate assets for the applicable period.
j) The Articles of Incorporation and By-Laws of the REIT shall
provide that all of the shares of stock of the REIT shall be
issued in the form of uncertificated securities and an investor
may not require the REIT to issue a certificate in respect of
any share recorded in their name.

Electronics manufacturing services provider Integrated Micro-

Electronics, Inc. debuted “by way of introduction” on the
PSE, the bourse’s first listing for 2010.
Table 12: Top 25 Companies by Market Capitalization (Common Shares)
Market Capitalization
Rank
Company Name Code (in Php)

1 Manulife Financial Corporation MFC 1,258,289,435,820.00

2 Sun Life Financial Inc. SLF 715,606,536,357.00
3 Philippine Long Distance TEL 476,975,942,652.00
Telephone Company “Common”
4 San Miguel Brewery, Inc. SMB 462,314,368,800.00
5 San Miguel Corporation SMC 378,113,482,819.80
6 SM Investments Corporation SM 332,306,589,267.00
7 Manila Electric Company MER 257,017,814,676.00 Cebu Pacific debuts on the PSE as the first initial public Nickel Asia Corporation, one of the world’s top ten largest IP Converge Data Center, Inc. marked the conclusion of a
8 Aboitiz Power Corporation AP 228,852,593,947.70 offering of 2010. nickel producers, marked its debut on the PSE with the successful IPO with the listing of 181.87 million common shares.
9 Ayala Land, Inc. ALI 214,364,564,757.24 The listing by way of introduction of IP E-Game Ventures, Inc. was the first
traditional bell ringing ceremony before the market opened.
10 Bank of the Philippine Islands BPI 209,819,638,304.00 online games publisher to list on the bourse.
11 Aboitiz Equity Ventures, Inc. AEV 204,861,444,559.10
12 Ayala Corporation AC 191,343,985,008.00
13 Petron Corporation PCOR 176,439,466,633.54
14 SM Prime Holdings, Inc. SMPH 158,169,972,102.46
15 Banco de Oro Unibank, Inc. BDO 152,535,117,559.50
16 Metropolitan Bank & Trust Company MBT 152,019,793,224.00
17 San Miguel Pure Foods Company, Inc. PF 133,333,676,800.00
18 JG Summit Holdings, Inc. JGS 133,224,956,477.20
19 Alliance Global Group, Inc. AGI 121,496,599,737.50
20 Energy Development Corporation EDC 110,062,500,000.00
21 Atok-Big Wedge Company, Inc. AB 109,180,500,000.00
22 Globe Telecom, Inc. GLO 105,878,778,400.00
23 Holcim Philippines, Inc. HLCM 100,007,536,732.00
24 DMCI Holdings, Inc. DMC 95,597,784,000.00 SM Development Corporation listed additional shares at the PSE following The PSE welcomed the listing of Petron Corporation’s P10 San Miguel Corporation listed 873 million preferred shares which Bank of the Philippine Islands completed the listing
the property developer’s P11.7 billion stock rights offer. billion perpetual preferred shares on March 5, 2010. is the largest preferred shares listing in Exchange history. of P10 billion stock rights shares last August 24, 2010.
25 Jollibee Foods Corporation JFC 92,009,915,890.90

The Philippine Stock Exchange, Inc. 2010 Annual Report 16 17 Charging to New Highs
Revised Procedures for Filing
of a Listing Application
In line with the initiatives of the PSE to
streamline operations, improve efficiency, and
promote conservation and environmental
initiatives, the PSE implemented starting on
June 1, 2010 its revised procedures for filing an
initial or additional listing application. Under
the revised procedures, the applicant company is
required to submit all of the listing application
documents in two (2) hard copies and a CD or
DVD containing a scanned copy of each of
the required document in PDF format. These
revised procedures supersede the old procedure
where an applicant company was required to
submit all of the listing application documents in
five (5) hard copies.
Proposed Revisions to the Listing
By Way of Introduction Rules
The Exchange temporarily suspended the
implementation of the Rules on Listing By Way
of Introduction (Rules) in the Revised Listing
Rules on February 17, 2010, in line with the
review of the proposed revisions to the Rules in
order to enhance its investor-protection features
Proposed Amendment
to the Delisting Rules
The Board of Directors of the Exchange, in its
regular board meeting held on May 12, 2010,
approved the proposed amendment to the PSE
Rules on Delisting, as follows:
“It shall be a ground for delisting whenever at
least 99.90% of the issued and outstanding shares
of a listed company is owned by a person or by
related parties who are non-public shareholders.
In this case, the regular procedure for delisting
under these Rules will not apply. Instead, the
Exchange shall effect the delisting of the shares of
the listed company after thirty (30) calendar days
from receipt by the listed company of the written
notice/order to delist.”
This proposed amendment is still pending SEC
review and approval.
Philippine Mineral Reporting Code
Implementing Rules and Regulations
(PMRC IRR)
The PMRC IRR was approved by the SEC in its
10-minute segment on ANC for stock market education inked
Stock market topics in high school nears completion
MARKET EDUCATION
The PSE bolstered its efforts in expanding and educating
the market’s investor base as one of its principal objectives
under the LEVEL UP agenda. The outcome of this is
evident in the chart below (see Figure 3), which shows
the intensification of market education campaigns in
the last five years, highlighted by a 7 percent increase of
participants from 33,831 to 36,099 individuals reached
in 2010.
The PSE completed a total of 342 market education
events and projects in 2010. These projects and
events have been organized into three main categories
enumerated below:
1. SHORT-TERM “AWARENESS” CAMPAIGNS or
“below-the-line”, non-traditional marketing activities
which are intended to attract a large number of
LEVEL UP
EXPAND & EDUCATE THE INVESTOR BASE
The PSE has also endeavored to penetrate corporate websites and
newsletters to reach more prospective investors. Partnerships with
leading broadsheets such as the Philippine Daily Inquirer and the
Manila Times were pursued in order to reach their readers with
feature articles about stock market investing and stock trading
tournaments. Together, these media outfits have an estimated
national readership of over two million.
The PSE also utilizes other media channels in providing stock
market awareness and financial literacy. These include social
networking sites, the PSE Website, the PSE-Insular Electronic
Board at the corner of Ayala and Paseo de Roxas Avenues, PSE
Circulars, and the PSE audiovisual presentations.
36,099 Individuals Reached
400 342 Market Education Activities 40k

Market Education Activities

participants. These activities aim to entice participants to Number of Indivuduals
and to address the pricing and valuation issues meeting on September 31, 2010. Reached
of companies that list by way of introduction. join the PSE’s medium and long term market education
Number of Market 30k
programs where the benefits of stock investing are 300
Subsequently, in the regular meetings of the Education Activities
Board of Directors of the Exchange on March By way of background, the Philippine Mineral emphasized.

24, 2010 and April 28, 2010, the Board approved
the proposed revisions to the Rules. The SEC
approved the proposed revisions on March
3, 2011. Subsequently the PSE declared the
amended Rules on Listing by Way of Introduction
effective starting on March 24, 2011. The
suspension of the Rules is thus considered lifted
subject to the amendments approved by the SEC.
The amendments include, among others, the
following additional requirements: (i) fairness
opinion and valuation report issued by a third
party financial institution on the pricing of the
applicant company’s securities to be listed in
accordance with the Guidelines for Fairness
Opinions and Valuation Reports; (ii) enhanced
lock-up provisions; and (iii) lifting of the trading
band on the listing date of the securities.
Reporting Code (“PMRC”) sets minimum
standards and guidelines for Public Reports of
Exploration Results, Mineral Resources, Ore
Reserves, and Metallurgical assessments and
design related to mining in the Philippines.
The formulation of the PMRC relied on the
international codes from Australia, particularly
the JORC Code (2004) of Australia, South Africa,
European Union, Canada and the International
Reporting Template (2006) by the Committee
for Mineral Reserves International Reporting
Standard.
The PMRC IRR adopts the PMRC principles
of materiality, transparency and competency.
The IRR provides listed mining and exploration
companies, and those applying to list in the
Exchange, with implementing guidelines and pro-
forma outlines for complying with the reporting
Individuals Reached
200
2. MEDIUM-TERM “IMPACT” PROGRAMS on the other
hand are learning events which encourage individuals to
100
gain more knowledge about stock investing. Participants
are mostly reached through the Short Term “Awareness”
events and the PSE’s standard communication channels. 0 0
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
year
3. LONG-TERM “CORE AND FOUNDATION”
PROGRAMS are innovative programs designed to yield Fig. 3: No. of Market Education Activities Conducted
lasting results. Mostly academe-based, these programs & No. of Individuals Directly Reached (1994-2010)
aim to address the rudimentary problem of low
awareness among Filipinos about the stock market. This
program also provides continuing education courses for
market participants and serious investors. 40k in 2010
OFWs 2,450
Professionals/ 10,167
The PSE has directly reached almost 2,300 more 30k Businessmen/ 23,442
Market Participants
individuals comparing 2010 and 2009, based on recorded
Students
attendance of 36,099 and 33,831, respectively. The chart

standards provided in the PMRC. It aims to
protect the investors by requiring full disclosure
of material information, including economic
viability of the property, by covered companies
and prohibiting the disclosure of misleading
information.
Individuals Reached
below shows the result of more activities focused on
professionals and overseas Filipinos (OF).
The PSE expanded its reach through various media
channels. The 10-minute segment within the TV program
“Mornings at ANC, Market Education Segment” aired 0
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
over ANC every Friday from 9:30-9:45 AM, reaching year
more than 3,000,000 subscribers worldwide, according
to the Business Development Department of ANC. Fig. 4: Profile of Participants (1994-2010)

The Philippine Stock Exchange, Inc. 2010 Annual Report 18 19 Charging to New Highs
LONG TERM “CORE AND
FOUNDATION” PROGRAM
Integration of Stock Market
Topics in High School Curriculum
In 2010, the PSE and the Department of Education (DepEd)
successfully completed nationwide validation sessions for a stock
market segment in the high school curriculum, particularly in the
4th year Economics subject. The validation sessions assessed the
effectiveness of the stock market module and its lesson guide for
teachers. The validation was done through a series of roadshows
in key cities all over the Philippines covering around 700 students
and around 30 academic officials from five private and national
public high schools.
The validation sessions were carried out in the cities of Cebu
and Davao from November 8 to 12. Participating schools in
Cebu were Woodridge School, Abellana National School, and
Consolacion National High School.  Representative secondary
educational institutions in Davao, on the other hand, were Davao
City National High School and Alejandra L. Navarro National
High School.    the course. Experts from other stock exchanges
During the roadshow, the PSE also took the opportunity to
distribute the investor primer entitled, “Building Wealth with
Stocks: A Basic Guide to Investing in the Philippine Stock
Market,” and video CD materials, which served as supplemental
educational materials for the faculty and students.  39, Series of 2006 (CMO 39). This program institutionalized
Another round of validation sessions for public and private
high schools in Metro Manila and a key city of Southern Luzon
are scheduled in 2011. Furthermore, a nationwide faculty
development workshop will also be pursued to train educators on
how to teach the stock market to high school students.  The PSE CSSC is comprised of 12 modules (with
Upon completion of these exercises, the module should be ready
for implementation in school year 2011-2012. The program is
expected to cover 10,066 total public (5,359 public schools) and
private (4,707 private schools) high schools nationwide, reaching
approximately 6.76 million (5.42 million public and 1.34 million
private) students.
Institutionalization of “Savings and Invest-
ments” Subject in College General Education
The PSE also pursued the institutionalization of a required
“Savings and Investments” subject in the college general
education. However, this was stalled by the May 2010 National
Elections and the inevitable reorganization of the Commission
on Higher Education (CHED). The impending implementation
of “K plus 12”, a new educational system espoused by the
new government, will add two years to secondary education. It
may now be more appropriate for the proposed “Savings and
Investments” subject to be undertaken with the DepEd instead
of CHED, since the additional two senior high school years
present a better opportunity for the introduction of savings and
investments concepts to students if carefully compared with the
current college general education curriculum.
The Philippine Stock Exchange, Inc. 2010 Annual Report
Accomplishments in this program to date include the establishment
of rapport between the PSE, CHED and DepEd. The PSE was
also able to obtain essential guidelines for the submission of a
proposed course outline. Subsequently, the PSE initiated the
formation of a consortium together with the Bangko Sentral ng
Pilipinas (BSP) and the Bankers’ Association of the Philippines
(BAP), that embarked on the development of a draft course
outline. This outline was to be presented to the CHED Technical
Panel on General Education early in 2010 for evaluation and for
eventual formulation into draft Policies, Standards and Guidelines
(PSG), and then elevated to the CHED Committee en banc for
final approval.
This program is expected to cover 2,180 higher education
campuses nationwide with an estimated enrolment of about 2.8
million students.
Implementation of CMO 39
Another long term “core and foundation” program pioneered by
the PSE, together with the CHED and the Business Education-
Industry Linkage (“Linkage” - an assemblage of 14 professional
and academic organizations), is CHED Memorandum order
an enhanced business administration curriculum that includes
among others “capital markets”, a subject required for all financial
management students. The curriculum also includes an improved
“basic finance” subject, which likewise consists of a stock market
segment and is a requirement for a bigger number of business
administration students.
As a continuation of this program, the PSE, CHED and the
Linkage conducted a national summit last March 11, at the
Lyceum of the Philippines University. The summit successfully
gathered some 200 business education teachers from all over
the Philippines. Participating teachers were provided with useful
information, updates, as well as instructional methods and
materials related to the instruction of the capital markets subject.
Parallel to this undertaking is the development of a reference
textbook by the University of the Philippines College of Business
Administration under a donation agreement with the PSE.
Institutionalization of MBA
Specializing in Capital Markets
The Exchange has partnered with the Lyceum of the Philippines
University – Manila, Graduate School of Business in launching a
Master of Business Administration (MBA) program specializing in
Capital Markets.
This fast-paced 48-unit MBA will be conducted on weekends
and may be finished in only three or four trimesters or roughly a
little over a year. The program will give special credits to market
participants with a considerable number of working years in the
20
stock market and also to graduates of the PSE The PSE and its partner schools undertook
Certified Securities Specialist Course (CSSC). curriculum review in 2010 as part of
In contrast to the CSSC, this MBA program will improvements in the course offered. Its principal
employ team teaching and make full use of actual objective was to calibrate course modules
field work more than classroom instruction. The with the ideal competencies of a successful
industry paper work of each student must be graduate. Furthermore, classroom learning is
functional and useful in actual practice by any complemented with various exposure activities,
market-related institution. The proposed venue which include stock market seminars, industry
for classes is the Lyceum campus situated in briefings, and hands-on training on the New
Makati City. Classes will start in early 2011. Trading System, PSE tour, and stock brokerage
firm visits.
PSE Certified Securities
Specialist Course Continuous expansion of faculty pool and
partnerships with technology and information
The PSE has completed two runs of the PSE
providers Thomson Reuters, Bloomberg, and
CSSC in 2010, plus one batch ongoing until
Technistock were also pursued to further enhance
2011.
shall also be invited to teach in future runs.
The PSE CSSC is envisioned to provide continuing Corporate runs with top private corporations
education for market participants. Launched in and government-controlled/owned financial
December 2006, the PSE CSSC is a 126-hour institutions and provincial runs are also part of
certification course on financial market theories, the future plans for this program.
valuation techniques, analysis, management,
ethics, regulations, and market dynamics. It
was developed by the PSE Capital Markets
Development Division, Market Education
Department, and a team of academicians and
market practitioners.
two pre-requisite subjects) and covers an intensive
learning process to ensure the participant’s
understanding and appreciation of the course.
Academic performance is measured through
written examinations.
A total of 113 professionals and fresh graduates
enrolled under the CSSC. Below is the breakdown:
The PSE CSSC posters illustrate the
enhancement of the securities course
1. Ateneo Center for Continuing Education through partnerships with various
(CCE) – 55 students universities.
2. Development Center for Finance (DCF) –
Government Service Insurance System –
31 students
3. University of Santo Tomas Center for
Continuing Professional Education and
Development – 27 students
21 Charging to New Highs
 MEDIUM TERM
“IMPACT” PROGRAM
Overseas Filipino Program
Stepping up its campaign for OFs, the PSE also conducted the
following seminars for land-based workers, seafarers, and their
Philippine-based beneficiaries:
1. Love Ko Si Misis Program, March 27,
July 4 and August 28
2. Manila BSP Financial Learning Campaign,
April 27 and November 19
3. Seafarers’ Event with Smart Link,
June 26, September 23 and November 12
4. Pampanga BSP Financial Learning Campaign,
July 29
5. Legazpi BSP Financial Learning Campaign,
August 13
6. Bacolod BSP Financial Learning Campaign,
October 22
7. Dagupan BSP Financial Learning Campaign,
October 29
8. General Santos BSP Financial Learning
Campaign, November 12
Promotional Competitions:
National Economics & Capital
Markets Quiz Competition
The PSE also conducted the second nationwide Economics and
Capital Markets Quiz Competition for College on December 16 at
the PSE Centre Trading Floor in Pasig City. This drew participants
from 20 university and college-based economics and finance
student organizations from all over the Philippines.
The quiz contest was jointly undertaken with partner institutions
such as the Council of Economics Students (CES) and the Junior
Philippine Economics Society. Contestants went through an easy
round and average round of questions on various subjects within
the realm of economics and capital markets. The top five schools
after two rounds moved on to the championship round where a
unique betting system was employed for scoring.
The Economics Towards Consciousness of the University of the
Philippines-Diliman (UP Diliman) emerged as this year’s quiz bee
champion. Securing the second and third places were De La Salle
University Economics Organization and UP Diliman Economics
Society, respectively.
Last February 6, the PSE conducted the high school leg of the PSE-
CES Economics and Capital Markets Quiz Competition. Students
from the Philippine Science High School won the top prize.
The Philippine Stock Exchange, Inc. 2010 Annual Report
SHORT TERM
“AWARENESS” PROGRAM
Impact Seminars: Joint Projects with
Trading Participants and Interest Groups
In cooperation with multiplier organizations, 32 seminars were
Promotional Competitions: successfully conducted by the PSE with the following partners: PSE Bull Run 2010
Stock Trading Tournaments The PSE Bull Run is a yearly fun run that
• CFA Society of the Philippines
Several Stock Trading Tournaments (STT) were launched in 2010. promotes both well-being and stock market
• CitisecOnline.com
STTs are three- to six-month long individual or team competitions consciousness among ordinary Filipinos. The
• Tsupitero.com
open to all students of state universities and colleges, private higher event attracts thousands of running enthusiasts,
• Analysts-Equities Traders Training Center sports celebrities, and prominent personalities
education institutions and local universities and colleges and other
organizations or institutions operating in the Philippines. It aims • Wealth Securities from government, diplomatic and business
• BPI Securities
to provide participants with hands-on experience in stock trading communities. The annual run was held at the
where they may apply financial theories, practice investment • Colayco Foundation for Education Bonifacio Global City last January 17 with about
strategies, learn about the various markets, valuation techniques • Biz Whiz 5,000 registered runners. The huge turnout of
and adherence to trading rules among others. • Business Coach participants, aside from the thousands of fun
• Absolute Traders runners, accounted for a 6% increase from the
• Asia Pacific Association for Fiduciary Studies previous year’s Bull Run.
A nationwide tournament was also launched jointly with the
ING Investment Management Inc. in July 9 entitled “The ING- • Global Investors’ Center
PSE 2010 Equity Challenge.” Students from Ateneo de Manila
These various events and seminars directly reached 1,235
University won the tournament which was formatted as team
competition. It drew close to 1,000 participants. prospective investors.
Impact Seminars:
Another major tournament was the StockXChallenge which is
jointly organized with First Metro Investment Group and the
Seminars for Local Institutions
Catholic Educators Association of the Philippines. This nationwide Aside from retail accounts, the PSE also carried out a program
competition attracted almost 700 individual participants. specifically meant for local institutions with investible funds.
Seminars were conducted for cooperatives, business chambers,
microfinance institutions and other institutions with investible
Promotional Competitions: funds.
Best Thesis Competition
Local Roadshows
The Best Thesis Competition was likewise launched on October
For 2010, the PSE conducted six major local roadshows, which PSE directors pose at the starting line to kick off the 2010
27 in partnership with the Junior Philippine Economics Society
involved around 2,000 participants broken down as follows: PSE Bull Run.
and the CES. The contest aims to recognize theses written by
college students and in due course encourage them to conduct 1. The PSE Cebu-Davao Roadshow in February
more research and studies about the capital markets.
with 700 participants
2. The PSE Cagayan de Oro Roadshow in February
Economic Briefings
The PSE also served as a major partner of the
with 500 participants
Bangko Sentral ng Pilipinas for the conduct of its
3. The PSE Baguio Roadshow in May with 200 participants
4. The PSE Cebu-Dumaguete Roadshow in June semi-annual economic briefings held on:
with 600 participants
1. PSE-BSP Year-End Economic Briefing
The roadshow seminars were attended by high net worth on March 3 at Dusit Thani Hotel
individuals and businessmen who may have interest in listing their 2. PSE-BSP Mid-Year Economic Briefing
companies on the PSE. Trading participants with branch offices on August 18 at Dusit Thani Hotel
in roadshow destinations also conducted marketing activities
and consultation sessions with prospective investors during the
roadshows. Each briefing attracted almost 1000 participants.
Contestants of the 2010 PSE-JPES-CES National Economics and Capital Markets Quiz
Competition for College show off their winnings during the awarding ceremony held Industry Briefings
last December 16 at PSE Tektite in Ortigas.
Quarterly briefings were also accomplished by the PSE covering
Impact Seminars: Short Courses four different industries:
The PSE also conducted a nine-hour intensive short course from
1. Philippine Software Industry Briefing
June 28 to July 1. About 42 prospective investors enrolled. A
2. Real Estate Investment Trusts Industry Briefing
16–hour review course was likewise conducted exclusively for
3. Philippine Retail Food Industry Briefing
Associated Persons (APs) in support of the Philippine Securities
and Exchange Commission AP Certification Program. A total 4. Investments Outlook for 2011
of 15 market participants attended the review sessions. This
program was in partnership with the Compliance Officer Society All briefings were conducted at the PSE offices with a total
attendance of 631 market participants.
of the Philippines (COSPI).
22 23 Charging to New Highs

Expositions and Exhibits
To attract prospective investors and encourage them to
participate in medium term impact seminars, the PSE joined
several expositions and trade exhibits by putting up booths and
conducting marketing activities like the distribution of leaflets,
on-line trading demonstrations, short talks and audiovisual
presentations. For the year, the PSE was able to participate in the
following expositions and exhibits:
Listing Anniversaries
Exchange” last February 25. The aim was to familiarize lawyers
on the listing process by understanding the reasons why a
company goes public, the different responsibilities of each party
that the issuer engages in bringing the company public and the
requirements from both the Securities and Exchange Commission
and the Exchange.
Fig. 5: Profile of Retail Investors by Income
25.3%
• 50th Listing Anniversary of Manila Mining Corporation More than P1 million
• 10th Listing Anniversary of Chemrez Technologies, Inc.
• 10th Listing Anniversary of DFNN, Inc.
• 10th Listing Anniversary of Sun Life Financial, Inc.
• 5th Listing Anniversary of Manila Water Company 33.8%
• 5th Listing Anniversary of SM Investments Corporation Less than P500,000

The PSE was invited by the Capital Markets Institute of the

1. Cebu Business Month
2. Money and Wealth Expo
3. Philippine Business and Entrepreneurs Expo
Exchange Tours
Tours of the Exchange premises in Pasig and Makati were
conducted for about 300 groups ranging from foreign and
local colleges, universities, corporations, institutions and other
organizations.
REIT Primer
The PSE successfully launched the PSE Real Estate Investment
Trust Primer on June 22. The primer was developed in partnership
with the PSE Foundation. It contains the basic features of REITs.
The first copies of the primer were distributed among participants
in the PSE Cebu Roadshow who were mainly members of the
Cebu Chamber of Commerce and Industry.
MARKETING SERVICES
Direct marketing efforts spurred three public offerings in the
stock exchange. These were Integrated Micro-Electronics Inc.
which listed by way of introduction on January 21; Nickel Asia
Corporation , the 7th largest nickel producer in the world which
undertook an initial public offering on November 22; and IP
Converge Data Center , a member of the IPVG Corp. Group,
which conducted its maiden offer on December 9, and was the
first data center to list on the bourse.
To boost its marketing efforts, the PSE conducted a forum for
lawyers of the CVC LAW or Cruz, Villarza, Marcelo, and
Angcangco Office entitled “Listing in the Philippine Stock
Philippines (CMIP) to speak about listing on the Exchange as part
of the continuous training program the CMIP conducts for business
school college professors and lecturers. The lecture, entitled “SEC
and PSE Listing Process: Benefits to the Business Organization,”
was held on May 25. The PSE was also a source of knowledge and
information during the visit by graduate and continuing education
students from the St. Mary’s College of California last August 12.
The presentation to the students included an economic and market
briefing, a short history of the Philippine Stock Exchange and its
products,, landmark laws lobbied by the Exchange, and reforms
that have been pursued and implemented to enhance the viability
of the PSE as an investment destination.
Two forums were conducted in Cebu: one on March 23 entitled
“Alternative Financing through the Equities Market” which is part
of the perennial awareness program of the Exchange and another
from June 23 to 25 for the launch of the Real Estate Investment
Trust in Cebu as one of the highlights of the Cebu Business
Month. The forum tackled the importance of the REIT as one
of the better investment vehicles available in the country for both
institutional and retail investors.
Manila Mining celebrates its 50th listing anniversary at the PSE.
The PSE organized and hosted breakfast gatherings to celebrate
the listing anniversaries of six listed companies. Plaques of
recognition were given to the celebrators. Manila Mining
Corporation celebrated its 50th listing anniversary; Chemrez 41.0%
Technologies, Inc., DFNN, Inc. and Sun Life Financial, Inc. P500,000 to P1 million
celebrated their 10th listing anniversaries while Manila Water
Company and SM Investments Corporation celebrated their 5th
listing anniversaries. accounts. Local investors owned majority of the total online
accounts at 97.4 percent, while foreign investors cornered 2.6
percent.
PSE PUBLICATIONS
The Exchange continues to provide investors with valuable and up-
to-date market facts and figures through its regular publications – Further study of the results particular to retail investors revealed
the Weekly and Monthly Market Reports, and the PSE Fact Book. that 41.0 percent were individuals earning between P500,000 to
P1 million annually. About one-third of retail investors had an
annual income less than P500,000, while the remaining 25.3
The Exchange also provides free and processed information percent earned more than P1 million a year. In terms of age, 40.9
to guide the investing public in their decisions through the PSE percent of investors were between 45 to 59, while investors aged
Weekly Market Watch and the PSE Quarterly Top 50, which 30 to 44 comprised 35.5 percent of retail investors. Most retail
may be accessed on the PSE website. The PSE Weekly Market investors were professionals and were engaged in the services
Watch provides information on the top gainers and losers on a sector, which comprised 24.3 percent and 24.0 percent of retail
weekly basis, while the PSE Quarterly Top 50 publishes the top
investors, respectively. Based on geographical location, more than
performing companies in terms of income, revenues, return on half or 86.5 percent of the retail investors reside in Metro Manila
assets and equity, price performance, and other key corporate Luzon had an 8.9 percent share of retail investors, while Visayas
financial information. and Mindanao had 2.9 percent and 0.5 percent, respectively.
Other publications that could be accessed free of charge on
the website are the Stock Market Investor Profile and the PSE
Quarterly Dividend Report.
Stock Market Investor Profile
The Stock Market Investor Profile is an annual study started in
2008 that aims to provide a vivid snapshot of the investing public
and also to help the Exchange monitor its progress in attracting
investors.

Results of the survey conducted in 2009 showed that there were

SM Investments Corporation (SMIC) Vice Chairperson Teresita T. Sy (right) shares
with her father, SM founder Henry Sy, Sr. an award from the PSE marking the
conglomerate’s fifth year listing debut on the stock exchange. SMIC’s initial public
offering was the largest IPO in PSE’s history.
DFNN Inc. marked its 10th anniversary as a listed company with a traditional bell
ringing ceremony at the PSE. DFNN was incorporated on June 14, 1999 and listed its
shares on the PSE on October 30, 2000.
a total of 476,194 accounts, up by 7.1 percent from 444,680
accounts a year earlier. Of the total number of accounts, 94.4
percent or 449,545 were retail accounts, while 5.6 percent or
26,649 were institutional accounts. Local accounts comprised 98.6
percent of the total accounts as against the foreign accounts’ 1.4
percent share. Active accounts, or accounts that have traded at
least once during the year under study, increased by 10.5 percent
to 108,310 from 98,039 in 2009.
The number of online accounts meanwhile increased by 46.8
percent to 28,261 from 19,246 accounts a year earlier, with retail
investors still the key market for online trading. Active online
accounts amounted to 20,990 or 74.3 percent of the total online
PSE Quarterly Dividend Report
The PSE Quarterly Dividend Report is published in order to
address the need for dividend information of investors who put a
premium on dividend payment history in making their investment
decisions. It provides a summary of cash dividend declarations of
listed companies, which includes ex-dividend, record and payment
dates. The report ranks dividend-declaring companies based on
their dividend yield within a four-quarter trailing period. The
report also contains the dividend history of a company in the past
three years to give investors a better idea on the consistency of
dividend payments of various listed companies.

The Philippine Stock Exchange, Inc. 2010 Annual Report 24 25 Charging to New Highs
LEVEL UP
VALUE & ENFORCE
Maharlika Board
The PSE is presently working on the establishment of the
Maharlika Board, which will be a listing segment aimed at
CORPORATE GOVERNANCE STANDARDS distinguishing companies that voluntarily subscribe to higher
corporate governance standards.

In line with the development of the Maharlika Board rules, the

Exchange conducted extensive consultations in 2009 and 2010
with various stakeholders to discuss governance issues, exchange
governance practices and explore alternatives to address these
CG Starts with Me campaign, CG Guidelines launched issues. Stakeholders consulted included representatives of
listed companies and brokerage houses, financial executives and
research analysts.

After two years of consultation and long working session

CORPORATE GOVERNANCE
The year 2010 saw the Exchange continuing its Corporate Governance Improvement Program
(CGIP), a multi-year development initiative that is aimed at improving and strengthening the
Exchange’s internal governance system as well as building trust and confidence in the Exchange.
Amended Manual on Corporate Governance
The Exchange submitted to the Securities and Exchange
Commission (SEC) its amended Manual on Corporate Governance
in compliance with SEC Circular No. 6, Series of 2009, Revised
Code of Corporate Governance. The amended manual
strengthened the governance structure of the Exchange. The
positions of the Chairman of the Board and President are held
by separate individuals, both of whom are independent directors.
The Board of Directors has at least three independent directors,
who also head the Audit and Corporate Governance Committees.
The Audit Committee shall oversee the financial management
functions of the Exchange, including the external and internal
audit activities to ensure compliance with rules and regulations,
internal controls and financial reporting standards. The manual
also provides for a Nominations and Elections Committee, which
is tasked with ensuring a fair and orderly election of directors. The
Corporate Governance Committee is responsible for establishing
the policy on executive compensation for directors as well as
establishing policy on good governance for the Exchange and its
stakeholders.
On the management side, the Exchange has a compliance officer
who is accountable for meeting disclosures and other legal and
regulatory requirements. The Corporate Secretary ensures that
the needs of the directors are provided for an efficient operation
of the Board. The Exchange appoints an external auditor to
ensure the integrity of financial records and reports. Lastly,
the Exchange has appointed an external auditing and business
advisory firm to conduct a review of the Exchange’s operations
and its system of internal controls in support of the Exchange’s
internal audit function.
The amended manual also embodies the principle of full, fair,
and timely disclosure of material information. Lastly, it also
contains provisions allowing investors to exercise their rights as
shareholders.
Operations Manual
The Exchange completed the process of documenting and
updating its processes and systems. Various departments updated
their respective Standard Operating Procedures (SOP) to reflect
new or revised policies and procedures and other developments
such as the new trading and accounting systems. This initiative
to update the operations manual is expected to provide business
continuity, rationalize processes and introduce efficiencies, and set
clear responsibilities and accountabilities in the PSE.
Disclosure Seminar
Representatives from listed companies attended this seminar to
update them on the Exchange’s new disclosure rules, clarify issues
and inform them of the most violated provisions of disclosure rules
to properly guide them in complying with these requirements.
CG Starts with Me Campaign
This campaign was launched this year to promote good governance
among the Exchange’s employees. The aim is to make each
member of the organization aware of, contribute to and practice
good governance within their own set of responsibilities.
The PSE launched the CG Starts With Me campaign. (Inset) The “CG Starts With
Me Logo” is an abstraction of a heart and the letters C.G.
hours, the final draft of the Maharlika Board rules has been
written. The draft reflects the issues discussed with the various
stakeholders, such as disclosures of transactions, qualifications
and terms of independent directors, the conduct of annual
shareholders meeting, governance structures of companies, and
float requirements.
The Exchange has also signed a Memorandum of Understanding
with the International Finance Corporation under which the
IFC, through its Global Corporate Governance Forum, will
consider providing technical assistance to the Exchange. This
will facilitate the launch and proper operation of the Maharlika
Board, subject to initial activities to be undertaken by the
Exchange. This will include the creation of a Working Group to
review and make recommendations to the Exchange regarding
the Board’s operation. The Working Group has already been
formed, composed of distinguished market professionals and one
representative from the academe.
The Corporate Governance Guidelines for
Companies Listed on the Philippine Stock
Exchange (The CG Guidebook)
The CG Guidebook was launched in November as another
corporate governance initiative of the Exchange to promote
good governance among market participants. It is composed
of 10 guidelines embodying principles of good business practice
and based on internationally recognized corporate governance
codes and best practices. Each guideline is followed by practical
recommendations that a company can adopt to apply the
guidelines.
The aim of the CG Guidebook is two-fold. For one, it aims to
promote good governance practices among listed companies by
providing them with international best practices that they could
adopt in their own organizations, and secondly, to provide a
mechanism for investors to know about the corporate governance
practices of listed companies by having these companies upload
on the PSE website a disclosure on the assessment of their
corporate governance practices.
The initial implementation of the disclosure will be in 2011, to
cover listed companies’ assessments of their corporate governance
practices in 2010. It will be implemented under a “comply or
explain” regime which requires listed companies to explain
if they do not adopt specific recommendations. It will be the
investors who will judge whether they are satisfied by a company’s
governance practices.
The PSE and the British Embassy launched the CG Guidebook. The UK government
provided funding for the project.
Lastly, in addition to being a basis for the benchmarking of
corporate governance practices and the monitoring of progress,
the Guidebook can also serve as a basis for future rule development
as well as policy and legislative reform initiatives.
Participation in International Forums
The Exchange continued to participate in international
conferences which discussed the role of stock exchanges as self-
regulatory organizations (SRO) in promoting good governance
among its stakeholders.
In Asian roundtables sponsored by the Organisation for Economic
Cooperation and Development (OECD), the focus was on the
implementation of the OECD Guide on Monitoring Related
Party Transactions. In line with this initiative, the Exchange is
developing a disclosure template to standardize reporting of such
transactions for easy reference of investors. During the conference,
representatives from different countries share experiences about
their roles as regulators, investors, minority organizations and
other governance advocates in monitoring abusive related-party
transactions. The Roundtable aims to seek ways in protecting
investors and ensuring that information about related-party
transactions are disclosed fully and in a timely manner and that it
receives proper attention from shareholders.
The Exchange is also co-chair of the Task Force on Corporate
Governance of the Asian Oceanian Stock Exchanges Federation
(AOSEF). The AOSEF is a federation of stock exchanges in the
Asian and Oceanian region whose goal is to develop the securities
markets in the region. The CG Task Force was established to
provide a mechanism to discuss and help address the current
and emerging CG issues of member exchanges. For example, in
November 2010, the Exchange delivered to the AOSEF a “Survey
of Corporate Governance Systems, Practices and Issues” of its
member exchanges.
These exchanges of information among members allow them
to learn from each other’s experiences and possibly develop
initiatives towards further promoting good governance practices
in the region.
Lastly, the Exchange is a member of the AOSEF Reform Task
Force, whose purpose is to review the mission, objectives, structure
and funding of the Federation.

The Philippine Stock Exchange, Inc. 2010 Annual Report 26 27 Charging to New Highs
MARKET REGULATION
The PSE completed its annual regulatory examination of
the books and records of 81 active trading participants (TPs)
including 19 branches and agency offices. The PSE also
conducted monthly spot audits of selected trading participants to
verify their compliance with specific provisions of the Securities
Regulation Code, its implementing rules and regulations and the
Risk Based Capital Adequacy (“RBCA”) rules. The results of
the examinations showed a significant improvement in the TPs’
compliance with the relevant provisions of the said laws and
rules. As part of its efforts to foster transparency and conform to
international best practices, the results of the annual examination
will be published on the PSE’s website.
The PSE is committed to encourage a culture of compliance
among trading participants through the conduct of annual
compliance seminars and publication of commonly violated
rules and regulations with appropriate recommendations. A
compliance seminar was conducted on December 7 and a list
of commonly violated rules and recommendations in 2009 was
published on the PSE’s website on March 31.
The PSE has mandated the trading participants to adopt and
reflect on their financial statements the Broker-Dealer Chart of
Accounts starting January 1, 2011. The RBCA rules alongside
with the RBCA report template is being revised to adopt the
current accounting standards and industry best practices.
Investigation and timely resolution of investor
complaints and cases of unusual trading
activities
In 2010, the PSE received investor complaints pertaining mainly
to the conduct of Trading Participant employees, fees charged,
delivery of securities, and allegations of market manipulation.
All complaints filed were successfully resolved and the grievances
fully addressed.
Cases involving possible market manipulation and other trade-
related irregularities were likewise noted during the previous
year. For reasons involving jurisdiction, these cases were directly
endorsed to the Securities and Exchange Commission (SEC) for
proper disposition and resolution.
Cases against failed trading participants
The PSE, in close coordination with the Department of Justice
(DOJ) and the SEC, continuously monitors the status of cases
concerning failed trading participants. The PSE likewise
coordinates with the SEC for the filing of cases against failed
trading participants for violation of the provisions of the securities
The Philippine Stock Exchange, Inc. 2010 Annual Report
laws. Recently, the SEC, with the help of the PSE, filed a case
against defunct trading participant HK Securities, Inc. (HK) for
violation of the Securities Regulation Code, which case is now
pending with the DOJ for resolution.
During the previous year, the PSE continuously worked with HK’s
former clients in pursuing the case for syndicated estafa against the
responsible officers of HK. With the help of the prosecution fund
established by the PSE in 2009, complaints for seven (7) counts of
syndicated estafa were filed against HK’s Rodolfo Cruz, Cecilia
F. Cruz, Primalee Christine Cruz Cordero, Abelardo Cruz and
Melogen Buesa (Rodolfo Cruz, et. al.), for which the DOJ found
probable cause, resulting in the filing of the information for the
said criminal act in court. Two (2) other cases for syndicated estafa
were subsequently filed against Rodolfo Cruz, et. al., currently
pending with the DOJ for resolution.
Moreover, the PSE, in coordination with the DOJ, was able to
secure Warrants of Arrest, as well as Hold Departure Orders,
against Rodolfo Cruz, et. al. With the help of the National Bureau
of Investigation (NBI), the Philippine National Police (PNP) and
its arm, the Criminal Investigation and Detection Group (CIDG),
the PSE was able to effect the successful arrest of the accused
Rodolfo Cruz, et. al., who are currently under detention at the
Pasig City Jail.
Settlement of claims against
failed trading participants
The PSE continues to administer the settlement and distribution
of the remaining allocations of claimants of failed trading
participants. The PSE recently turned over the remaining
unclaimed entitlements for two (2) failed trading participants,
namely Marino Olondriz Y Cia and Asian Capital Equities, Inc.,
to the SEC.
Approval and promulgation of new rules
During the previous year, the PSE was able to successfully secure
the approval and implementation of two (2) new rules designed
to ensure the integrity of key market participants, namely: (a) the
Rules on the Public Bidding of Trading Right and Other Assets of
Failed Trading Participants, and (b) the Rules on the Application
for Operation of Trading Right by Trading Participants. These
two (2) new rules clarified and outlined the procedure for the
transfer of trading right and its operation. They also provided a
more stringent set of qualifications for those intending to acquire,
as well as those applying for the operation of, a trading right to
further guard against dubious entities seeking to penetrate the
Exchange.
28
First analyst briefing held
P10/share dividends declared
INVESTOR RELATIONS
First Analyst Briefing
The PSE successfully conducted its first analyst briefing on August
16 aimed at enhancing its visibility among investors and analysts.
The briefing enabled the PSE to communicate its strategies to
analysts from various brokerage firms and broadcast its positive
outlook on the stock market to investors.
A first for the PSE as a listed firm, the analyst briefing that drew
more than 20 trading participants and fund managers was essential
to making the leap forward towards developing its own investor
relations program. More importantly, the briefing allowed the
The PSE’s first analyst briefing drew more than 20 trading participants and fund managers.
29
LEVEL UP
ENHANCE SHAREHOLDER VALUE
PSE to communicate its own story to a broader investor base and
promote greater awareness for PSE as a profitable listed firm.
Trading participants and fund managers that attended the briefing
included: IGC Securities Inc.; F.Yap Securities Inc.; Angping &
Associates Securities Inc.; Deutsche Regis Partners Inc.; PCCI
Securities Brokers Corp.; RTG & Company Inc.; UCPB Securities
Inc.; Equitiworld Securities Inc.; Citiseconline.Com Inc.; The
First Resources Management & Securities Corporation; First
Orient Securities Inc.; Diversified Securities Inc.; BDO Securities
Corp.; Campos Lanuza & Company Inc.; JP Morgan Securities
Philippines Inc.; I. Ackerman & Co.; Vicsal Investment Inc.;
First Grade Holdings; PLDT Retirement Fund; and the GSIS
Retirement Fund.
With the analyst briefing, the PSE expanded coverage by analysts
particularly from PCCI Securities Brokers Corp. and Campos
Lanuza & Company, Inc. The existing coverage by JP Morgan
Securities was also reinforced.
Cash Dividend
The PSE declared a cash dividend of P10 per share to stockholders
as it remains committed to enhancing shareholder value. The
cash payout, which was approved by the Board of Directors, is
composed of a P3.40 regular dividend and a P6.60 special cash
dividend to stockholders of record as of March 25 and payable
on April 21.
Charging to New Highs
 LEVEL UP
LAUNCH NEW PRODUCTS & SERVICES
Industry experts welcome REITs in forum
Exchange participates in ETF training
BUSINESS DEVELOPMENT
Exchange Traded Fund
The PSE sought the assistance of the Japan International
Cooperation Agency (JICA) for a training program on the
Exchange Traded Fund (ETF) aimed to educate Philippine
regulators and market practitioners about the Japanese ETF
market. The technical assistance was granted through a special
budget for economic crisis by JICA in the form of a training
program entitled “Exchange Traded Fund Traded Program”
which was held in February at the JICA Tokyo International
Center in Japan. The grant was awarded to 25 representatives
selected by their respective organizations from private and
government organizations who are key to the establishment of
an ETF Market in the Philippines, namely the Securities and
Exchange Commission (SEC), Bureau of Internal Revenue (BIR),
Bangko Sentral ng Pilipinas, The Philippine Stock Exchange, Inc.
(PSE), Securities Clearing Corporation of the Philippines, Fund
Managers Association of the Philippines, Investment Companies
Association of the Philippines, and Trust Officers Association of
the Philippines.
The training included topics on: ETF Global Development,
Registration, Strategy, Listing and Trading Rules, Tax System,
Custody and Depository Function, and Operations, Trustee,
Products Strategy, and ETF Tradable Index and Regional
Cooperation, among others.
Representatives from Securities and Exchange Commission (SEC), Bureau of Internal
Revenue (BIR), Bangko Sentral ng Pilipinas (BSP), The Philippine Stock Exchange,
Inc. (PSE), Securities Clearing Corporation of the Philippines (SCCP), Fund Managers
Association of the Philippines (FMAP), Investment Companies Association of the
Philippines (ICAP), and Trust Officers Association of the Philippines (TOAP) attended
a training program together with Bank of Japan officers and Mr. Noriyuki Suzuki,
Daiwa Institute of Research, Tokyo.
The Philippine Stock Exchange, Inc. 2010 Annual Report
Real Estate Investment Trust (REIT)
After its passage into law on December 17, 2009, the Real Estate
Investment Trust Law (REIT Law) became effective on February
9. Its Implementing Rules and Regulations were finalized by the
SEC on May 13. The BIR Revenue Regulations are still under
discussion.
To raise public awareness about the REITs, the PSE, with The
Pinnacle Group International organized the 2nd Annual REIT
Asia Pacific Philippines Summit 2010 held on July 27-28 at the
New World Hotel, Makati City. The Summit was well attended
by foreign and local Real Estate Industry practitioners, lawyers,
investment bankers, members of the press, as well as Philippine
regulators.
Senator Edgardo J. Angara graced the event and delivered his
keynote address, in which he emphasized the need to introduce
new products such as the REIT. Sen. Angara described the REIT
as a useful product that can contribute in uplifting the lives of the
Filipino people. He said that the REIT is expected to boost trading
activity in the stock market to help the PSE become at par with
other exchanges in the region who continue to introduce an array
of products supported by their regulators and the government.
Panelists of the REIT Asia Pacific Philippines were (L to R) Atty.Franchette Acosta, CVC
Law; Atty. Veronica Santos, SGV; Commissioner Juanita Cueto, SEC; Atty. Francis Lim,
ACCRA Law; Atty. Elizabeth Opena, Quisumbing Torres; and Atty. James Roldan, BIR.
30
As an alternative source of capital, REITs will not only help the
property companies in their expansion projects, but, as in other
countries, boost fund infrastructure projects of the government.
The Asia Pacific Real Estate Association or APREA, a non-profit
association aimed at promoting investment in the real estate sector
in Asia Pacific, supported the event with its Chief Executive Officer,
Mr. Peter Mitchell as guest speaker. During the panel discussion,
property companies and investment banks provided their insights
on the current state of the Philippine real estate, interest of
foreign investment in Asia, and prospects for REIT. Industry
experts from Malaysia, Singapore, Japan and Australia discussed
their experiences since the launching of REIT, and gave valuable
insights to the property developers on lessons learned. Local
REIT regulators presented the applicable rules and regulations in
Philippine REIT. The SEC discussed the Implementing Rules and
Regulations while the BIR responded to queries on taxation. The
PSE presented then proposed REIT Listing Rules, while lawyers
from ACCRA, SGV, Quisumbing Torres, and CVC law had a
panel discussion which gained a lot of interest and questions from
the participants.
MARKET DATA BUSINESS
Equipped with the implementation of a new strategic business
model, the PSE’s market data revenues zoomed to its record high
with a percentage growth of 78.7 percent to P38.6 Million from
P21.6 Million in 2009. The PSE’s new strategic business model
included distinct identification of market segments and pricing
structures or data usage policies per segment. As a percentage of
trading income, market data revenues increased to 32.0 percent
in 2010 from 21.7 percent in 2009. A key component in the new
business model was the implementation of a variable fee structure
for data usage, differentiating amongst institutional and retail
end-users, short message service (SMS), voice-response systems
(VRS) or electronic boards (eBoards) / TV Walls. The variable
fee pricing structure is employed by virtually all stock exchanges
worldwide.
Market data revenues hold a key distinction amongst the other
operating revenue sources of the exchange in that it is fairly
constant amidst market conditions. Thus, it becomes a good
31
140
133.8 120.7
120
99.4
100 Trading
76.4 Fees +
80 Block
Market
60 Data
38.6 Revenue
40
19.2 21.6
17.4
20
0
2007 2008 2009 2010
Fig. 6: Trading Fees and Market Data Revenue (in Php Millions)
cushion especially during market downtrends. To illustrate, the
chart above shows revenues from trading fees and market data
from 2007 – 2010.
Both 2007 and 2010 were bull markets with trading fees of P133.8
Million and P120.7 Million, respectively, while 2008 was deemed
a market downtrend with trading fees of only P76.4 Million.
These spikes caused by market volatility are not observed at all
in the market data arena. In fact, despite the downtrend in 2008,
market data revenues continued to increase year-after-year, from
P17.4 Million in 2007 to P38.6 Million in 2010, or an average
annual rate increase of 40.6 percent.
Moreover, with the strategic move of the Exchange to migrate
to a state-of-the-art trading system, market data clients had to
likewise customize their systems to connect to the new platform.
All market data clients successfully cutover.
Lastly, a move to streamline areas of responsibility was made
by differentiating the market data business from the broker’s
own front-end order management solutions. In the past, the
Communications Front-End (CFE) contract administration was
handled by the Market Data Business. CFE contracts were given
to trading participants (TP) that had their own broker front-end
systems and further received market data. With the launch
of the new trading system, all CFE contracts were terminated.
TPs entered into two new agreements, namely: 1) Common
Customer Gateway (CCG) Connection Agreement, managed by
the Market Operations Division and 2) Equities Feed Data License
Agreement, which is administered by Market Data Business.
Charging to New Highs
LEVEL UP
UPGRADE MARKET INFRASTRUCTURE
AND HUMAN RESOURCES
Exchange rolls out PSEtrade
Documentation of Operations Manual completed
INFORMATION TECHNOLOGY
New Trading System (NTS) or PSEtrade
On July 26, 2010, PSE’s New Trading System (NTS) now known
as PSEtrade was launched to replace the Maktrade System. One of
the activities done prior to its launch was ensuring that all PSEtrade
users including Trading Participants’ (TP) traders, back-office
staff, nominees, directors and executives were ready. To ensure
their readiness, PSE conducted a series of trainings on related
systems namely: (1) PAM (Poste D’Access Aux Marche); (2) Broker
Utility; (3) Client Code Generation; (4) Trade Amendments; (5)
Trade Unbundling.
PAM is the trading terminal used by traders in sending orders
to the Exchange. It is critical that all users of PAM have passed
all the certifications needed. By the end of 2010, PSE trained
and certified a total of 700 PAM Users. A total of 480 Trading
Accounts were issued to the certified PAM users to access the
Exchange trading system.
PAM terminals can be deployed on the Exchange trading floors or
at the Trading Participants’ offices or branches. The PSE deployed
over 200 remote PAM trading terminals all over the country.
The PSE also enhanced the remote PAM security access by
implementing the 2-factor authentication system with a Security
Token which was required to authenticate offsite traders and
protect them against hackers. As of December 2010, a total of
140 Security Tokens were processed and released.
Aside from trading via PAM terminal, a trading participant can
also send orders via the Customer Common Gateway (CCG) of
the Exchange. The CCG allows trading participants to connect
their own Front-End Order Management System (FEOMS) to the
Exchange. TPs are given the option to either develop their own
trading terminal to send orders or purchase solution from any of
the PSE-certified FEOMS vendors. As of 2010, five (5) FEOMS
vendors were certified with 17 TPs connected to the CCG.
During the launch of PSEtrade, the PSE Support Staff were
strategically stationed to provide immediate support to all PSEtrade-
related systems and to conduct initial diagnosis of the problems
encountered. In order to further enhance customer service to the
TPs, the PSE also provided a centralized email address (helpdesk@
pse.com.ph) and a hotline (819-4450). All pertinent PSE personnel,
who were recipients of the emails, catered to all trading-related
The Philippine Stock Exchange, Inc. 2010 Annual Report
emails and calls. As a result, all trading-related issues, inquiries and
concerns were addressed immediately.  successfully upgraded the central storage system to house various
A dedicated website was also developed where all PSEtrade-related
memos, announcements, presentations, technical requirements,
documentations, training schedules and schedule of events were
uploaded and still being maintained and updated.
Along with the introduction of the PSEtrade is the implementation
of a new set of Trading Rules and Regulations.  Following are some
of the major adjustments on the trading rules and regulation as a
result of the new functional features that goes with the new System:
New Trading Hours.  The Exchange has introduced the pre-close
phase which is the period wherein the closing price for a Security
is determined. 
Dynamic Threshold.  This price control mechanism replaced the
system embedded three-tick rule which the former trading system
offers.  The Dynamic Threshold is the permitted difference in price
between two Last Traded Price updates for a given Security. 
Inter-broker Deal.  Block sale between two Trading Participants
is now permitted. 
Order Types and Validities.  These features of the new System
are designed to serve as added strategic tool for the Trading
Participants.  While all the validity types have already been
introduced, only limit order type is currently set off until the
PSEtrade Project Committee transitions to the next phase of the
project implementation plan.
Board Lot Table.  The Exchange has introduced a new Board Lot
Table which aims to promote liquidity.  The said new table has a far
narrowed tick size compared to the previous, the purpose of which
is to provide more point of entries for average investors. 
PSE supported all users of the old Trading System, Maktrade,
until PSEtrade was launched in the middle of 2010. Trading system
availability for the Y2010 is 99.67%, with Total Downtime  of 55.7
mins for Maktrade and 188.8 minsfor PSEtrade.
32
Surveillance System
The Exchange has approved the initiative to strengthen the
monitoring and surveillance of the capital market. The initiative
aims to integrate the internal market monitoring, risk management
and examination processes of the Exchange through technology
integration and process streamlining. It also aims to safeguard
investor interest through faster and more accurate determination
of unusual market movements and faster turnaround time for
investigations.
Market Control
For the year 2010, the Exchange has facilitated and executed 386
block sales with a total processing fee of P23,251,334.34. PSE also
implemented corporate actions through the old as well as the new
system such as change in par value, declassification of shares and
other quasi reorganization.
The Exchange was able to manage the smooth transition from
MakTrade’s Market Regulator Terminal to PSEtrade’s SPI
(Station de Pilotage or Market Control Workstation) which is the
former’s equivalent for real time monitoring of trading and facility
for executing trade related requests and other market actions
including the newly adopted dynamic threshold.
Top: Stockbrokers use the new PAM Terminals that
run under PSEtrade, the Exchange’s new trading
system. Right: PSE’s data center gets an upgrade.
33
Data Center
The PSE completed the rehabilitation of its data center in Ayala.
The data center will allow PSE to offer additional services such as
server co-location for both data vendors and trading participants.
The Exchange also enhanced the security of its premises with
the installation of additional CCTV system and a physical access
control system in the data center.
In response to the demand for more data storage space, the PSE
databases of the Exchange. Separate central storage machines
were upgraded on both Primary and and Disaster Recovery (DR)
sites for backup purposes. Both storages are being mirrored real-
time in response for more reliable data storage space. For improved
services and availability, the Exchange also completed the review
and evaluation of establishing a disaster recovery (DR) site. The
DR site is a critical activity that will allow the PSE to provide
information to stakeholders in the event that the operation of the
primary site is impaired. The expected roll-out of the DR site is
scheduled during the first quarter of 2011.
Applications Development
In line with the roll-out of PSEtrade, the Exchange completed
the development of the Universal Interface (UI) which is a
middleware application that is designed to convert the native
Charging to New Highs
messages of PSEtrade into a format compatible
with the existing systems and databases that
include the LED board, the PSE website,
existing back office databases and other back
office reports. The Exchange also developed new
trading-related applications for TPs such as the
Client Code Generation, Trade Amendments
and Unbundling to accommodate new features
and requirements of the NTS.
The PSE also undertook the upgrade of back
office applications and reporting activities to
make them compatible with PSEtrade. This
includes new designs and formats of all end of
day reports for the public, data vendors as well as
for trading participants(TP’s).
In order to improve operational efficiency
through personnel-related initiatives towards
technological advancements, the Exchange
migrated its e-mail infrastructure from
Oracle Collaboration Suite (OCS) to Zimbra
Collaboration Suite. Further, all Exchange’s
databases were moved to a central location which
required updating of affected applications. It
also upgraded Securities Clearing Corporation
of the Philippines’ database server for Central
Clearing Central Settlement (CCCS) system.
HUMAN RESOURCES
In 2010, PSE introduced new programs,
projects and policies to continually improve the
operational efficiency of the employees. These
personnel-related initiatives were:
Management
Development Program
The Exchange conducted the 7 Habits of
Highly Effective People Signature Program
attended by department/ section heads and/
or employees identified on the succession plan.
The workshop enabled participants to develop
personal leadership and effective interpersonal
relationships, which are necessary for building
teamwork, empowering people, and achieving
customer satisfaction. The workshop was
facilitated by Ms. Lirio Mapa of the Center for
Leadership and Change, Inc.
The Philippine Stock Exchange, Inc. 2010 Annual Report
Employee Stock Purchase Plan
(“ESPP” or the “Plan”)
Now on its third year of implementation, a total of
49,358 out of 50,012 PSE shares were subscribed
and paid for by regular employees of PSE and its
subsidiary, the Securities Clearing Corporation of
the Philippines (“SCCP”). Employees should have
at least one year of service as of the offer date to
avail of the ESPP. The fixed offer price was P237.46
based on the Volume Weighted Average Price
(VWAP) of ESPP shares of the month preceding Clockwise from left: PSE employees demonstrate their athletic
the offer date and with a discount of ten percent prowess in bowling and basketball.; PSE officials lead the
from the offer price. Under the Plan, there is no blessing of the new offices.; President Benigno S. Aquino III
visited the Exchange on September 14, 2010 to commemorate
minimum holding period before the participant the recent record highs of the stock market and to inaugurate
can trade the PSE shares purchased through the the PSE’s new offices in Makati.; This shows a snapshot of the
PSE’s integrated offices in Makati.
ESPP. The ESPP Administrator is composed of
the COO of the PSE as the Chairman, and the
Head of the Corporate Services Division and
COO of the SCCP as members. Regular Programs PSE Office Integration Project
The Exchange conducted regular employee wellness programs, The PSE Office Integration Project was completed last August
such as quarterly socials, health lecture series, and conducted 2010. All of the PSE back offices were transferred from the Tektite
Operations Manual Project office to the PSE Plaza along Ayala Avenue. Trading floors for both
various sports activities like basketball, bowling and badminton.
PSE has completed its documentation of the It also held a strategic planning-teambuilding workshop for PSE sites are both operational and being maintained.  The Integration
operations manual for approval of the Board. The Project brings an increase in efficiency of the operations of the
officers. The workshop aimed to further enhance their working
objective of the project is to develop a PSE manual divisions/departments and reduction in the occupancy and
relationship in helping achieve the synergy of a high-performing operational costs of the Exchange.
of operations that complies with the standard team, and to improve communication and mutual cooperation
operating procedures, forms and workflow among the group.
processes. The project is spearheaded by the
President/CEO with the Strategy Management
Officer as Secretariat. The Exchange also lined up several activities to promote work-
life balance. These included seminars on health issues such as
stress management, and personal development such as the Seven
In-house payroll system and HRIS Habits of Highly Effective People. The Exchange also sponsored
The in-house payroll and human resources quarterly socials to enhance relationships among employees.
information systems have been installed and rolled
out in January 2011. With these systems installed,
PSE saves at least P300,000.00 per year from the
previous outsourcing of the payroll services.
PSE officers and staff completed the 7 Habits of Highly
Effective People Signature Program conducted by the Center
for Leadership and Change, Inc. as part of the Exchange’s
Management Development Program.
34 35 Charging to New Highs
LEVEL UP
PARTNER WITH GOVERNMENT
& OTHER STAKEHOLDERS
Implementing Rules and Regulations of the
Real Estate Investment Trust (REIT) Act of 2009
The Implementing Rules and Regulations of the Real Estate
Investment Trust Act of 2009 was approved by the Securities and
Exchange Commission on May 13, 2010 and are now in effect.
The revenue regulations pertaining to the tax aspects of REIT
Law have yet to be issued by the Bureau of Internal Revenue.
FINANCIAL REHABILITATION AND
INSOLVENCY ACT (FRIA)
On February 2, Congress passed into law the Financial
Rehabilitation and Insolvency Act of 2010. Realizing the need
to modernize the outdated legal framework of the country’s
insolvency proceedings under the old Insolvency Law of 1909,
the PSE supported the FRIA to maximize the chances of
survival of the business of a financially distressed company or
individual through four different remedies: a. court-supervised
rehabilitation; b. pre-packaged rehabilitation; c. out-of-court or
informal restructuring agreement or rehabilitation plan; and d.
liquidation.
a. Court-supervised Rehabilitation
This proceeding may be initiated by either the debtor or the
creditor and the approval of the rehabilitation plan by each class
of creditors is required. The rehabilitation plan is deemed to
have been approved by a class of creditors if members of the said
class holding more than 50 percent of the total claims of the said
class votes in favor of the plan. The Court shall have a maximum
period of one year to confirm the approval of the rehabilitation
plan. Upon confirmation by the Court, the rehabilitation shall
have a cram down effect on all creditors, whether or not such
creditors participated in the proceedings. The proceedings may
be converted to liquidation if rehabilitation is not successful or is
not feasible.
b. Pre-packaged Rehabilitation
This action may be instituted by the debtor, by itself, or jointly
with its creditors. The pre-packaged rehabilitation plan is
required to be approved by creditors holding at least 2/3 of the
total liabilities of the debtor, including secured creditors holding
more than 50 percent of the total secured claims and unsecured
creditors holding more than 50 percent of the total unsecured
claims of the debtor. The Court shall have a maximum period of
120 days to approve the pre-packaged rehabilitation plan.
c. Out-of-Court or Informal Restructuring
Agreement or Rehabilitation Plan
Under this remedy, the out-of-court rehabilitation plan requires
the agreement of the debtor and the approval of creditors
The Philippine Stock Exchange, Inc. 2010 Annual Report
SEC approves IRR of REITs
FRIA passes into law
PSE firms up ties with ASEAN exchanges
representing at least 67 percent of the secured obligations,
creditors representing 75 percent of the unsecured obligations
and creditors holding at least 85 percent of total secured and
unsecured liabilities of the debtor.
d. Liquidation
This remedy is available to both juridical and individual debtors.
The liquidation order approved by the Court shall vest all title
and control of the assets of the debtor on the liquidator. The
liquidation order shall also contain a schedule of the liquidation
of the assets of the debtor for the payment of the claims of the
creditors. Upon the termination of the proceedings, the Court
shall declare the dissolution and liquidation of the juridical debtor
or the discharge of the individual debtor from his liabilities.
Under the FRIA law, the rehabilitation of securities market
participants such as brokers, dealers, underwriters, transfer agents
or other entities transacting securities in the capital market does
not preclude the filing of any form of action by clients to recover
or otherwise claim moneys and securities against the securities
market participant as well as the filing of any action by the
regulatory agency or self-regulatory organization to pay or settle
such claims or liabilities.
Stock Market Competitiveness
Act or SMARTCA
A bill proposing to revamp the tax system for the stock market has
been filed with the House of Representatives on January 19 to
spur its development and arrest its marginalization in the regional
market.
The bill, dubbed as the “Stock Market Competitiveness Act
or SMARTCA”, was introduced as House Bill No.7111 by
Congressman Exequiel B.  Javier, the chairman of the House
Committee on Ways and Means.
The main features of the bill include granting a lower income tax
rate of 25 percent instead of 30 percent for a period of 10 years
to companies that list their shares with the stock exchange within
a limited period of five years from the implementation of the law;
waiving the initial public offering or IPO tax, and reducing the
stock transaction tax (STT) to 1/4 of one percent from its present
rate of 1/2 of one percent.
For companies to be able to avail of the tax incentives and other
privileges granted by the proposed law, they must meet specified
trading requirements and corporate governance standards.  Both
existing and newly listed companies are covered by the proposed law.
36
MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE PSE AND THE KOREA
EXCHANGE, INC.
The PSE and The Korea Exchange, Inc. (KRX) signed a MOU toward the end of 2011. Furthermore, the ASEAN exchanges,
on February 5, 2010 to pursue long-term cooperation for the in cooperation with solutions provider NYSE Technologies,
announced the completion of the design study for the ASEAN
development of the respective financial services industries of the
Philippines and the Republic of Korea. Under the agreement, trading link’s technology framework. Shortlisted vendors who are
the PSE and KRX agreed to work together in areas involving the able to provide the infrastructure have already been invited to
provision of general information and market information, the tender.
improvement of information technology infrastructure and the
search for strategic alliance opportunities in product development
The ASEAN trading link aims to electronically interconnect
and the creation of new markets.
the participating markets and facilitate cross-border trading
seamlessly.
MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE PSE AND HANOI STOCK
EXCHANGE
On June 22, 2010, the PSE and the Hanoi Stock Exchange
(HNX) signed a MOU to pursue long-term collaboration towards
exploring business opportunities for the market participants of the
two exchanges. Under the agreement, the PSE and HNX agreed
to establish a working committee which will facilitate cooperation
and coordination in areas covering the exchange of information,
the conduct of joint training programs and the improvement of
information technology.
MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE PSE AND THE HO CHI MINH
STOCK EXCHANGE
The PSE and the Ho Chi Minh Stock Exchange (HOSE) signed The MOU between PSE and the the Hanoi Stock Exchange was signed during
the 11th Asean Exchanges CEOs Meeting held in Dalat City, Vietnam. Witnessing
a MOU on January 15, 2010 to pursue mutual collaboration on the signing ceremony were the CEOs from the Indonesia Stock Exchange, Bursa
information sharing between the two exchanges. The PSE and Malaysia Berhad, the Hochi Minh Stock Exchange, Singapore Exchange Limited,
and the Stock Exchange of Thailand.
HOSE agreed to share information and experience on volumes
and market price indicators, annual reports and financial
statements submitted by listed companies as part of the disclosure
requirements of each exchange and listing and disclosure rules.
ASEAN Trading Linkage Project
The Exchange has been participating in discussions to develop an
ASEAN Trading Linkage through the ASEAN CEOs meetings
and the ASEAN Strategy Development Working Group (SWG).
The PSE, being one of the four actively participating exchanges
that include Bursa Malaysia Berhad, Stock Exhange of Thailand,
and the Singapore Exchange Ltd., hosted some of the meetings
in 2010.
The ASEAN exchanges discussed preparations needed prior ASEAN stock exchanges inked an agreement for a design study with the NYSE
Technologies on February 8 following the 10th ASEAN CEOs meeting held in
to the targeted roll out of the ASEAN Trading Linkage project Manila, which will pave the way for inter-ASEAN electronic trading.
37 Charging to New Highs
Strategic Marketing Partnerships
BOARD OF INVESTMENTS

Going the Extra Mile

The Exchange’s strong strategic partnership with the Board of
Investments greatly contributed to the increasing number of
BOI-registered companies listed on the Exchange. To further
strengthen this partnership, the PSE conducted a market
briefing for a group of twenty (20) senior and middle managers
from the Ando Securities Corporation of Japan last June 2.
CORPORATE SOCIAL RESPONSIBILITY (CSR)

PSE and Thomson Reuters will work together to provide instructional and marketing
With the assumption of the Aquino Administration on June 12, initiatives to educate listed companies on the key principles needed to develop
The PSE initiated a courtesy visit to Department of Trade and effective investor relations management programs.
Industry Secretary Gregorio Domingo last August 5 to discuss
with the Secretary the initiatives of the PSE with the BOI, an
attached agency of DTI.

Being an important component of corporate

governance, the Exchange conducted several
activities embodying its commitment to community
building through investor education and financial
literacy programs, employee development and
community work.

For one, The Philippine Stock Exchange (PSE) Foundation pursued

PSE officials paid a courtesy call to Trade Secretary Gregory L. Domingo to
discuss various capital market initiatives at the Exchange.
THOMSON REUTERS
A letter of intent between PSE and Thomson Reuters was
signed last August 19 with the intention of promoting the best
practices in investor relations and the key principles involved
in the development of effective investor relations strategies for
listed companies. This collaboration will offer and provide
IR solutions packages to listed companies and will ensure that
listed companies are educated on the value of IR.
ABS-CBN NEWS CHANNEL (ANC)
After several years of working together, a Memorandum
of Agreement (MOA) between PSE and Sarimanok News
Network, Inc. (SNN) of ABS-CBN Broadcasting Corporation
was signed last December 6 to formalize its partnership in
boosting investor awareness and education on the capital
market. This partnership gives ABS-CBN News Channel
(ANC) the permission to use pertinent market data including
PSE’s real-time ticker tape to be flashed during their various
business-related programs. Ten minutes of ANC’s daily
program from Monday to Friday between 8:00am to 1:00pm
will be allotted for the “PSE Segment” where various stock
market topics will be discussed. In order to promote investor
awareness, CEO’s and other officers of listed companies will
also be interviewed on a regular basis.
Right: The PSE kicked off its 1st Futsal Cup in July, just days after the World
Cup Finals held in South Africa. The Futsal Tournament drew participants from
trading participants and listed firms.
The PSE and SNN agreed to co-organize “The PSE Segment”, a ten-minute portion
of ANC’s morning block programming aired weekly
on Fridays that will focus on investor education.
First Futsal Cup
The PSE launched its first Futsal Cup, an indoor soccer tournament
for trading participants, PSE employees and listed firms last July
17 at the Clubsixfifty Sports Center in Quezon City. The Futsal
Cup aimed to foster camaraderie and sportsmanship among the
broker community, listed firms and the PSE, and capital market
participants. It was meant to enhance awareness of PSE’s brand
among young professionals and capital market participants
through the tournament. It also coincided with the conclusion of
the 2010 World Cup in South Africa which contributed to the
momentum and success of the local tournament.
Participating in the tournament are teams consisting of the PSE
and PCCI Securities Brokers Corp.; ATR Kim Eng Securities,
Inc. and DBP-Daiwa Capital Markets Philippines, Inc.; Campos,
Lanuza & Co.; Alakor Securities Corporation and I.B. Gimenez
Securities, Inc.; Bank of the Philippine Islands, BPI Securities
Corp., UBS Securities Philippines, Inc., Deutsche Regis Partners,
Inc.; and International Container Terminal Services Inc. and
Ayala Corporation. Campos, Lanuza & Co. Inc. clinched the
championship, scoring 1-0 versus ICTSI in the finals.
its goal of educating and increasing awareness of the public on stock
investing by co-sponsoring the printing of the PSE REIT primer,
and the reproduction of the 3-volume PSE Video Books on the stock
market. The Foundation is a regular sponsor in the yearly PSE Bull-
Run and the PSE Road Shows on stock investing in the provinces, such
as Cebu, Davao and Dumaguete.
There were three major projects started in 2010 and scheduled to
go live in January 2011: (1) the production and daily airing of PSE
interstitials in between commercials of the news program, “The
Business Tonight” on ANC, the ABS-CBN News Channel, (2) the
conduct of interviews of listed company CEOs which are then aired
every Wednesday morning at ANC, and (3) the development and
maintenance of “ PSE Academy”, the PSE website dedicated to
educating, informing and assisting the general public on the workings
of the stock market.
The Foundation also granted a supplementary scholarship to
a PSE employee participant to the Emory University-Goizueta
The PSE donated 99 computer units to the PSE Foundation, Inc. for distribution to selected public schools
and charitable institutions.
The PSE and the PSE Foundation hosted a Christmas party for the children of White Cross.
Business School in Atlanta, G.A. U.S.A. To help strengthen and
develop institutions and associations related to the development
of the capital market, the Foundation continued to share in
the administrative expenses of the FINEX Capital Market
Development Council Secretariat.
To support the disadvantaged sectors of society, the Foundation
requested the PSE to donate used computers of the trading
participants to the Foundation. These computers were, in turn,
distributed to six schools and two government organizations. The
Foundation also responded to various small requests for financial
assistance of some charitable institutions.
The PSE is also a member of the Philippine
Business for Social Progress (PBSP).
The PSE and the PSE Foundation, Inc. hosted
a Christmas party for 62 wards of the White
Cross orphanage with the theme “PSE Cares,
PSE Shares” last December. Aside from
Christmas gifts, PSE donated sacks of rice,
milk, baby needs, kitchen, laundry supplies, and
computer units to the delight of the White Cross
children and management. The PSE employees
voluntarily took part in the project.

The Philippine Stock Exchange, Inc. 2010 Annual Report 38 39 Charging to New Highs
Running Partner
SECURITIES CLEARING CORPORATION
OF THE PHILIPPINES (SCCP)

The year 2010 was a banner year for the Securities Clearing Corporation, a wholly-owned subsidiary Implementation of the CCCS
of the Philippine Stock Exchange, Inc. The Company ended the year with Net Income after Tax of Collateral Management Module
P133.875 million, a 28 percent increase over the previous year’s net income of P104.723 million. SCCP implemented the Collateral Management In line with its intention to provide depository
module of its clearing and settlement system, services, SCCP submitted to the SEC the
The service fees earned by SCCP increased by 21 percent to P215.60 million from P177.58 million CCCS, last September 27, 2010. Effective the amendments to its articles of incorporation
in 2009. The very bullish investment climate in 2010 resulted in about 20 percent increase in average said date, SCCP no longer needed to fax to each and by-laws to include depository in its primary
daily value turnover of equity investments, from P4.109 billion in 2009 to P4.948 billion in 2010. On concerned Clearing Member the mark-to-market functions. SCCP received the approval of the
requirements and refund since concerned Clearing Commission in July 29, 2010. In August 24,
December 8, 2010, the SCCP Board of Directors declared cash dividends at P127. 66 per share or Members are notified through the Collateral 2010, SCCP submitted to the SEC its intent to
P120.0 million to stockholders of record as of December 31, 2010 payable on March 7, 2011. Management module of the CCCS system. operate the Depository for the equities market.
Moreover, the pledging of securities delivered
as collateral by Clearing Members is now being Risk Management and Monitoring
done through the said module of CCCS, instead
Enhancing the risk management and monitoring
of through the system of the central depository.
framework of SCCP can be regarded as SCCP’s
Thus, this has resulted in savings for the Clearing
highlight for the year 2010. As previously
Members who no longer have to pay the central
reported, the SCCP had engaged the services of
depository for pledging and lifting collateralized The CBM Group, Inc., a management consulting
shares. Effective October 18, 2010, cash firm based in New York, USA, to undertake a
collaterals were also handled through the CCCS study on the clearing house equity market risk
Collateral Management module. The Settlement management and institutionalize SCCP’s risk
Clearing and Settlement Operations Banks now electronically confirm to SCCP management procedures to become at par with
Clearing Members continued to maintain a very satisfactory significantly improved since then. For the period June 28, 2010 all available funds in the Clearing Members’ the global standards and practices. This was
compliance rate with respect to the 12:00 noon settlement up to December 30, 2010, due broker entitlements (cash and Cash Collateral Deposit Accounts enabling the known as “Project Clearing House.”
delivery deadline, achieving 99.94 percent and 99.95 percent for securities) have been released by 12:52 p.m. on the average, Clearing Members to view said balances online,
the delivery of cash and securities obligations, respectively. There whereas prior to the migration to the new database servers, the real-time through the CCCS system. Monitoring
of cash and securities collaterals is now being While the enhancements to the Company’s risk
were no overnight settlement fails experienced during the year. average time for releasing due broker entitlements was 1:33 p.m.
done in one system, online, real-time. management framework were being laid out,
Clearing Members’ delivery and receipt instructions are almost
SCCP continued to consistently implement its
instantaneously posted and processed in the CCCS system whereas
Migration of the CCCS to its own Database in the past, there was some lag time. Also, securities deposits from
daily risk management procedures such as the
The implementation of the Collateral procedures on the “Highly Unusual Settlement
Servers the Depository and cash confirmations from the Settlement Banks Management module also paves the way for SCCP Obligations,” the procedures on the “Identified
In line with the objective of improving settlement processing in are processed and credited real-time in the CCCS system. to be able to implement the Securities Borrowing Securities”, the procedures on the “Designated
order that due broker entitlements will be released at a much and Lending (SBL) module of the CCCS system Stocks” or stocks that exhibit unusual price,
earlier time, SCCP purchased two new database servers for the which uses the Collateral Management module volume and value changes as well as the Mark-
sole use of the Central Clearing and Central Settlement (CCCS) Primary and Backup Link with PDTC in the collateralization requirement of an SBL to-Market Collateral Deposit system. The SCCP
system. The following set-ups were implemented to maximize the CCCS is interconnected with the depository system of the transaction. likewise closely monitored whether each clearing
new technology brought about by the new servers: Philippine Depository & Trust Corp. (PDTC) via the messaging member was adequately capitalized to meet its
interface which passes through a leased line. Intra-day daily average netted obligations.
confirmations for credits of securities necessary for settlement SCCP Depository Project
• Separation of both the SCCP database production and
back-up servers from the PSE servers rendering the CCCS
are being sent by PDTC through the said connection. To ensure As reported in 2010, the SCCP engaged in a Project Clearing House
uninterrupted messaging interface with PDTC, we have entered major project which is aimed to provide the
independent and unaffected by glitches that may occur in the The CBM Group presented its final
into a lease agreement with two service providers, one of which equities market participants with a central system
PSE back-office systems recommendations to the joint Board of Directors
serves as the primary and active link with PDTC while the other performing both the depository and clearing and
• Upgrade of database management system from Oracle 9i to of the PSE and SCCP dated November 11, 2009
service provider serves as the secondary and backup link. settlement functions that would enable an end-to-
Oracle 10g culminating the “Project Clearinghouse”.
end processing of equities trades. This will create
• Use of a more efficient incremental backup, in lieu of the efficiency in the settlement processes, reduce
traditional database mirroring, which improved the network
PSE’s New Trading System Project the risks of a fragmented market with multiple Based on the recommendations of The
traffic flow Prior to the launching of PSEtrade, SCCP took active participation systems, and ultimately, reduce the friction costs CBM Group and in consultation with the
in the series of market rehearsals facilitated by the Exchange, of the clearing members and the end-investors. Risk Management Committee, the SCCP
providing support to the participants and ensuring the integrity The proposed structure will enable the SCCP to management proposed to the SCCP Board the
After conducting a series of testing activities, including the and correctness of the transactions entered into the CCCS be at par with the practices of most Exchanges enhancements to SCCP’s Risk Management
stress testing which Clearing Members participated in, CCCS system. For two weeks after the launch, SCCP closely monitored where the clearinghouse and the depository are Framework. SCCP received the approval and
was successfully migrated to its new database servers last June the accuracy of data feeds coming from the Exchange and the operated by one entity, under the direct regulation support of its Board of Directors to implement
28, 2010. The performance and efficiency of the CCCS has instructions being entered by the Clearing Members. of the Exchange. the following risk management measures:
.
The Philippine Stock Exchange, Inc. 2010 Annual Report 40 41 Charging to New Highs
Imposition of Margin Requirement
On top of the collection of mark-to-market collateral to cover for
the price exposures on the clearing members’ unsettled trades,
SCCP shall impose a risk-based margin requirement from the
clearing members based on their net outstanding obligations to
SCCP. Besides the additional liquidity which the margins will
bring in to the clearinghouse in the event of a settlement default,
the margin requirement is commensurate with the risks imposed
by the individual clearing members to SCCP. In addition, the
implementation of margin requirement places more responsibility
on the clearing members for the risks they impose on the clearing
system since each clearing member would have to cover for the
resulting risks arising from its own unsettled trades and ensure its
capacity to cover for SCCP’s Margin Requirements if it intends
to trade on a large scale.
SCCP will implement Margin Requirement in two phases:
Phase 1:
The Margin Requirement shall be 5 percent of the difference
between the Clearing Member’s net outstanding obligations
for a given day and its preceding 6-months daily average net
outstanding obligations.
Phase 2:
The Margin Requirement shall be 5 percent of the Clearing
Member’s net outstanding obligations for a given day, computed
on a per security basis.
The timing for the migration to Phase 2 shall be determined by
the Risk Management Committee and the management and shall
have to be approved by the SCCP Board of Directors.
Migration to Full Netting
of PSE Trades for Settlement
In order to reduce the risks imposed on the clearing system, SCCP
will adopt full netting of PSE trades regardless of the flag which
classifies a trade as to whether such trade is a client or proprietary
transaction and as to whether the nationality of the dealer or client
is foreign or local. The adoption of full netting will significantly
reduce the overall volume of trades due for settlement, hence the
risks borne by SCCP on the unsettled trades. In addition, the
adoption of full netting will create higher efficiency by reducing
the volume of trades to be processed by the clearing members
and SCCP and shortening the settlement processing time which
would further result in the earlier crediting of entitlements to the
clearing members and end-investors. The adoption of full netting
would also align our settlement method with the global practice.
Alternative Cash Settlement
The current rule allows SCCP to invoke the Alternative Cash
Settlement on the 3rd business day following the original
settlement date (T+6) where upon execution, SCCP shall provide
money compensation to the aggrieved counterparties by making
reference to the market value of the securities subject of the
settlement default at the time of payment of the compensation
or a value considered by SCCP to be fair and appropriate in the
circumstances.
As a risk management measure, the SCCP Board approved the
management’s recommendation to allow the SCCP President or its
COO to invoke the Alternative Cash Settlement in the afternoon
of T+4, in the event of a failed buy-in of the securities subject of
the default and where any one of the following conditions exist:
(a) The security subject of the trade default is considered as high
risk;
(b) The value of the trade in default is deemed high risk relative
to the exposure it imposed on the CTGF; or
(c) The defaulting clearing member is considered as high risk.
Where any of the above conditions exists, SCCP would be able to
limit its exposure to one (1) day instead of three (3) days particularly
on the fluctuation risk where the price band is currently at 50
percent up or 50 percent down.
Securities Borrowing and Lending
The SCCP has applied with the SEC to be a
Lending Agent for its Securities Borrowing and
Lending (SBL) Program. Under the proposed
SBL Framework, SCCP as a Lending Agent will
play the role of a Central Counterparty to all SBL
transactions coursed through SCCP. Such SBL
transactions and accordingly, the collateralization
of said SBL transactions will be centrally coursed
through the CCCS system, through its Securities
Borrowing and Lending module as well as the
Collateral Management module. It is necessary
for SCCP to stand as a Central Counterparty
because the CCCS system adopts a “screen and
pool concept” where the participants will have
complete anonymity in lending or borrowing the
securities through SCCP. Lenders will only need
to deposit the securities for lending in the lending
pool where the SCCP will be the pool operator.
Clearing members may have either or both a
lender and a borrower status in the CCCS system Vision
provided that the necessary documents have been
duly signed, registered and submitted to SCCP. A premier exchange with world-class standards
for trading securities and raising capital that
serves as a strong engine for a robust economy
As a Central Counterparty Lending Agent, SCCP Mission
will perform risk management actions such as
Offer products and services responsive
performing daily valuation of the collateral
to the needs of investors and other stakeholders
deposits against the value of the loan at market,
monitoring and ensuring the sufficiency of the Provide a facility for fair, accurate, complete
collateral guaranteed by the Borrower and for risk and timely information about listed companies,
while extending market education and awareness
management purposes, and performing Manual programs to investors
Recall of the loaned securities.
Be a preferred venue for raising capital
Practice and promote good governance within
In addition, SCCP will guarantee the settlement
the Exchange and among listed companies
of all loan transactions such that in an event of and trading participants
default, SCCP will perform fails management
Operate efficiently to optimize shareholder value
actions such as the execution of the Alternative
Cash Settlement which shall be equivalent to a Adopt world-class systems and global best
Deemed Sale. Under its proposed framework, practices for an efficient, fair and orderly market
SCCP will charge the defaulting borrower a
Develop a highly motivated and professional
compensation value, the amount of which shall workforce, committed to serve and excel
be credited to the Lender as compensation for
Corporate Values
receiving the cash equivalent of the securities
lent. Professionalism in delivering quality service and
in meeting the highest standards of excellence

As recommended by the Risk Management Committee, SCCP
management proposed an established formula for computing
the compensation value, which shall be the highest price of the
securities subject of default plus an ad valorem rate of 10 percent,
as approved by the SCCP Board of Directors.
SCCP has submitted to the SEC the proposed revisions to the
Rules and Operating Procedures pertaining to the Alternative
Cash Settlement.
While this program will provide additional revenue
to SCCP, providing an SBL platform is more of a
value-added service to SCCP’s members to help
curb potential securities fails and in the same
manner, support the Exchange in its Short Selling
program. In addition to the documents submitted
to the SEC in compliance to its application as a
Lending Agent, SCCP has submitted to the SEC
for approval its proposed Rules and Operating
Procedures governing all SBL transactions under
the SCCP SBL Framework.
Integrity, transparency and accountability
in implementing business programs and
enforcing decisions
Teamwork in working towards a common
and favorable goal for the market
Mutual respect in relating with fellow employees
Inner strength in prioritizing the common good
of the market instead of individual interest
Corporate responsibility in promoting market
growth hand in hand with community welfare

The Philippine Stock Exchange, Inc. 2010 Annual Report 42 43 Charging to New Highs
Listed Companies
Stock Listed Company Website Certification on Compliance with
Symbol Corporate Governance Manual
(as of March 24, 2011)
1. BRN A Brown Company, Inc. www.abrown.ph ✓
2. ANS A. Soriano Corporation www.anscor.com.ph ✓
3. ABA Abacus Consolidated Resources and Holdings, Inc. www.abacusconsolidated.com ✓
4. AEV Aboitiz Equity Ventures, Inc. www.aboitiz.com ✓
5. AP Aboitiz Power Corporation www.aboitizpower.com ✓
6. ATS Aboitiz Transport System (ATSC) Corporation www.atsc.com.ph ✓
7. AR Abra Mining and Industrial Corporation ✓
8. ABS ABS-CBN Corporation http://ir.abs-cbn.com ✓
9. ABSP ABS-CBN Holdings Corporation abs-cbnpdr.com ✓
10. DHC Acesite (Phils.) Hotel Corporation www.waterfronthotels.com.ph ✓
11. AAI Active Alliance, Incorporated www.activeallianceinc.com ✓
12. AGP AGP Industrial Corporation ✓
13. ANI AgriNurture, Inc. www.ani.com.ph 76. EURO Euro-Med Laboratories Phil., Inc. www.euromedlab.net ✓
14. AMC Alaska Milk Corporation www.alaskamilk.com.ph ✓
15. APM Alcorn Gold Resources Corporation www.alcorngold.com ✓
16. AGI Alliance Global Group, Inc. www.allianceglobalinc.com ✓
17. FOOD Alliance Select Foods International, Inc. www.allianceselectfoods.com ✓
18. ABC Allied Banking Corporation www.alliedbank.com.ph ✓
19. ALPHA Alphaland Corporation www.alphaland.com.ph 82. FC Fil-Estate Corporation www.fil-estatecorp.com ✓
20. ACR Alsons Consolidated Resources, Inc. www.acr.com.ph ✓
21. ALHI Anchor Land Holdings, Inc. www.anchorlandholdings.com ✓
22. APO Anglo Philippine Holdings Corporation www.anglophil.com ✓
23. APC APC Group, Inc. www.apcaragorn.com ✓
24. APX Apex Mining Co., Inc. www.apexmines.com ✓
25. ARA Araneta Properties, Inc. www.aranetaproperties.com ✓
26. ALCO Arthaland Corporation www.arthaland.com ✓
27. AAA Asia Amalgamated Holdings Corporation ✓
28. ATI Asian Terminals, Inc. www.asianterminals.com.ph ✓
29. ASIA AsiaTrust Development Bank, Inc. www.asiatrustbank.com ✓
30. AT Atlas Consolidated Mining and Development Corporation www.atlasphilippines.com ✓
31. ATN ATN Holdings, Inc. www.atnholdings.com ✓
32. AB Atok-Big Wedge Co., Inc. www.atokbigwedge.com 95. GLO Globe Telecom, Inc. www.globe.com.ph ✓
33. ATRK ATR KimEng Financial Corporation www.atrkimengfinancial.com ✓
34. AC Ayala Corporation www.ayala.com.ph ✓
35. ALI Ayala Land, Inc. www.ayalaland.com.ph ✓
36. BDO Banco de Oro Unibank, Inc. www.bdo.com.ph ✓
37. BF Banco Filipino Savings & Mortgage Bank* www.bancofilipino.com 100. HP Highlands Prime, Inc. www.highlandsprime.com ✓
38. BPI Bank of the Philippine Islands www.bpi.com.ph ✓
39. BKD Bankard, Inc. www.bankard.com ✓
40. BSC Basic Energy Corporation www.basicenergy.ph ✓
41. BLFI BDO Leasing and Finance, Inc. www.leasing.bdo.com.ph ✓
42. BEL Belle Corporation www.bellecorp.com ✓
43. BC Benguet Corporation www.benguetcorp.com ✓
44. BCOR Berjaya Philippines Inc. www.pgpi.com.ph ✓
45. BH BHI Holdings, Inc. www.bhi-holdings.com ✓
46. BMM Bogo-Medellin Milling Company, Inc. ✓
47. BHI Boulevard Holdings, Inc. www.boulevardholdings.com ✓
48. CEB Cebu Air, Inc. www.cebupacificair.com ✓
49. CHI Cebu Holdings, Incorporated www.cebuholdings.com ✓
50. CPV Cebu Property Ventures and Development Corporation www.cpvdc.com ✓
51. CAT Central Azucarera de Tarlac, Inc. www.cat-luisita.com ✓
52. CEU Centro Escolar University www.ceu.edu.ph ✓
53. CPM Century Peak Metals Holdings Corporation www.centurypeakmetals.com ✓
54. CIP Chemical Industries of the Philippines, Inc. www.chemphil.com.ph ✓
55. COAT Chemrez Technologies, Inc. www.chemrez.com ✓
56. CHIB China Banking Corporation www.chinabank.ph ✓
57. CHTR Chinatrust (Phils.) Commercial Bank Corporation www.chinatrust.com.ph ✓
58. COL CitisecOnline.com, Inc. www.citiseconline.com ✓
59. LAND City & Land Developers, Incorporated www.citylandcondo.com ✓
60. CDC Cityland Development Corporation www.citylandcondo.com ✓ 123. KEP Keppel Philippines Properties, Inc. ✓
61. CSB Citystate Savings Bank, Inc. www.citystatesavings.com ✓
62. CA Concrete Aggregates Corporation www.cac.com.ph ✓
63. CBC Cosmos Bottling Corporation www.cosmosbottling.com.ph ✓
The Philippine Stock Exchange, Inc. 2010 Annual Report 44
Stock Listed Company Website Certification on Compliance with
Symbol Corporate Governance Manual
(as of March 24, 2011)
64. CEI Crown Equities, Inc. www.crownequitiesinc.com
65. CYBR Cyber Bay Corporation ✓
66. DFNN DFNN Inc. www.dfnn.com ✓
67. DGTL Digital Telecommunications Phils., Inc. www.digitel.ph ✓
68. DIZ Dizon Copper-Silver Mines, Inc. ✓
69. DMC DMCI Holdings, Inc. www.dmciholdings.com ✓
70. PWR East Asia Power Resources Corporation www.powr.com ✓
71. ECP EasyCall Communications Philippines, Inc. www.easycall.com.ph ✓
72. EEI EEI Corporation www.eei.com.ph ✓
73. ELI Empire East Land Holdings, Inc. www.empire-east.com ✓
74. EDC Energy Development Corporation www.energy.com.ph ✓
75. ETON Eton Properties Philippines, Inc. www.eton.com.ph ✓
77. EVER Ever-Gotesco Resources and Holdings, Inc. www.egrhi.com.ph ✓
78. EIBA Export and Industry Bank, Inc. www.exportbank.com.ph ✓
79. FJP F & J Prince Holdings Corporation www.fjprince.com ✓
80. FEU Far Eastern University, Incorporated www.feu.edu.ph ✓
81. FED Federal Resources Investment Group, Inc. www.federalchemicals.com.ph ✓
83. LND Fil-Estate Land, Inc. www.fil-estateland.com ✓
84. FDC Filinvest Development Corporation www.filinvestgroup.com ✓
85. FLI Filinvest Land, Inc. www.filinvestland.com ✓
86. FFI Filipino Fund, Inc. ✓
87. FYN Filsyn Corporation www.filsyncorp.com ✓
88. FAF First Abacus Financial Holdings Corporation www.firstabacusfinancial.com ✓
89. FGEN First Gen Corporation www.firstgen.com.ph ✓
90. FMIC First Metro Investment Corporation www.firstmetro.com.ph ✓
91. FPH First Philippine Holdings Corporation www.fphc.com ✓
92. FPI Forum Pacific, Inc. ✓
93. GEO GEOGRACE Resources Philippines, Inc. www.geograce.com ✓
94. GSMI Ginebra San Miguel, Inc. www.ginebrasanmiguel.com ✓
96. GMAP GMA Holdings, Inc. www.gmanetwork.com ✓
97. GMA7 GMA Network, Inc. www.gmanetwork.com ✓
98. GO Gotesco Land, Inc. ✓
99. GPH Grand Plaza Hotel Corporation www.grandplazahotelcorp.com ✓
101. HLCM Holcim Philippines, Inc. www.holcim.com.ph ✓
102. HI House of Investments, Inc. www.hoi.com.ph ✓
103. IMP Imperial Resources, Inc. ✓
104. ICTV Information Capital Technology Ventures, Inc. www.ictv.ph ✓
105. IMI Integrated Micro-Electronics, Inc. www.imiphil.com ✓
106. ICT International Container Terminal Services, Inc. www.ictsi.com ✓
107. IRC Interport Resources Corporation www.interportresources.com
108. ION Ionics, Inc. www.ionicsgroup.com ✓
109. CLOUD IP CONVERGE DATA CENTER, INC. www.ip-converge.com ✓
110. EG IP E-Game Ventures, Inc. www.e-games.com.ph ✓
111. IPO iPeople, Inc. www.ipeople.com.ph ✓
112. IP IPVG Corporation www.ipvg.com ✓
113. I I-Remit, Inc. www.myiremit.com ✓
114. RPL iRipple, Inc. www.iripple.com ✓
115. IS Island Information & Technology, Inc. www.iiti.ph ✓
116. ISM ISM Communications Corporation www.ismcomm.com
117. JGS JG Summit Holdings, Inc. www.jgsummit.com.ph ✓
118. JFC Jollibee Foods Corporation www.jollibee.com.ph ✓
119. JOH Jolliville Holdings Corporation www.joh.ph ✓
120. JTH JTH Davies Holdings, Inc. www.jthdavies.com ✓
121. KPH Keppel Philippines Holdings, Inc. ✓
122. KPM Keppel Philippines Marine, Inc. www.keppelphilippinesmarineinc.com ✓
124. LR Leisure & Resorts World Corporation www.lrwc.com.ph ✓
125. LC Lepanto Consolidated Mining Company www.lepantomining.com ✓
126. LFM Liberty Flour Mills, Inc. www.libertygroup.com.ph ✓
45 Charging to New Highs
 Stock Listed Company Website Certification on Compliance with Stock Listed Company Website Certification on Compliance with
Symbol Corporate Governance Manual Symbol Corporate Governance Manual
(as of March 24, 2011) (as of March 24, 2011)

127. LIB Liberty Telecoms Holdings, Inc. www.wi-tribe.ph ✓ 192. PCP PICOP Resources, Inc. ✓
128. LMG LMG Chemicals Corp. www.chemphil.com.ph/main_lmg.htm ✓ 193. PCEV PLDT Communications and Energy Ventures, Inc. www.piltel.com.ph ✓
129. LIHC Lodestar Investment Holdings Corporation www.lodestarinvestment.com ✓ 194. PEC PNOC Exploration Corporation www.pnoc-ec.com.ph ✓
130. LPZ Lopez Holdings Corporation www.lopez-holdings.ph ✓ 195. PO Polar Property Holdings Corporation www.polar.com.ph ✓
131. LSC Lorenzo Shipping Corporation www.lorenzoshipping.com ✓ 196. PEP Premiere Entertainment Philippines, Inc. www.pepinc.ph ✓
132. MHC Mabuhay Holdings Corporation www.mabuhayholdingscorp.com ✓ 197. PRIM Prime Media Holdings, Inc. ✓
133. MVC Mabuhay Vinyl Corporation www.mvc.com.ph ✓ 198. POPI Prime Orion Philippines, Inc. www.primeorion.com ✓
134. MAC MacroAsia Corporation www.macroasiacorp.com ✓ 199. PMT Primetown Property Group, Inc.
135. MFIN Makati Finance Corporation webmail.makatifinance.com.ph ✓ 200. PRMX Primex Corporation www.primexcorporation.com ✓
136. MIH Manchester International Holdings Unlimited Corporation www.pharmaindustries.com ✓ 201. PPC Pryce Corporation ✓
137. MBC Manila Broadcasting Company www.mbcsales.com.ph ✓ 202. RCM Republic Cement Corporation ✓
138. MB Manila Bulletin Publishing Corporation www.mb.com.ph ✓ 203. REG Republic Glass Holdings Corporation www.repglass.net ✓
139. MER Manila Electric Company www.meralco.com.ph ✓ 204. RFM RFM Corporation www.rfmfoods.com
140. MJC Manila Jockey Club, Inc. www.manilajockey.com 205. RCB Rizal Commercial Banking Corporation www.rcbc.com ✓
141. MA Manila Mining Corporation www.manilamining.com ✓ 206. RLC Robinsons Land Corporation www.robinsonsland.com ✓
142. MWC Manila Water Company, Inc. www.manilawater.com ✓ 207. RCI Roxas and Company, Inc. www.roxascompany.com.ph ✓
143. MFC Manulife Financial Corporation www.manulife.com ✓ 208. ROX Roxas Holdings, Inc. www.rhi-cadp.com.ph
144. MARC Marcventures Holdings, Inc. www.marcventuresholdings.com ✓ 209. SMB San Miguel Brewery, Inc. www.sanmiguelbrewery.com.ph ✓
145. MMI Mariwasa SIAM Holdings, Inc. www.mariwasa.com ✓ 210. SMC San Miguel Corporation www.sanmiguel.com.ph ✓
146. MC Marsteel Consolidated, Inc. 211. SMP San Miguel Properties, Inc. www.sanmiguelproperties.com.ph ✓
147. MED MEDCO Holdings, Inc. www.medco.com.ph ✓ 212. PF San Miguel Pure Foods Company, Inc. www.sanmiguelpurefoods.com ✓
148. MEG Megaworld Corporation www.megaworldcorp.com ✓ 213. SWM Sanitary Wares Manufacturing Corporation*
149. MAH Metro Alliance Holdings & Equities Corp. ✓ 214. SPM Seafront Resources Corporation www.seafrontresources.com.ph ✓
150. MPI Metro Pacific Investments Corporation www.mpic.com.ph ✓ 215. SECB Security Bank Corporation www.securitybank.com.ph ✓
151. TOL Metro Pacific Tollways Corporation ✓ 216. SCC Semirara Mining Corporation www.semiraramining.com ✓
152. MBT Metropolitan Bank & Trust Company www.metrobank.com.ph ✓ 217. SHNG Shang Properties, Inc. www.shangproperties.com
153. MET MIC Holdings Corporation www.micholdings.com ✓ 218. SINO Sinophil Corporation ✓
154. MIC Minerales Industrias Corporation ✓ 219. SMDC SM Development Corporation www.smdevelopment.com ✓
155. MJIC MJC Investments Corporation 220. SM SM Investments Corporation www.sminvestments.com ✓
156. MON Mondragon International Philippines, Incorporated* 221. SMPH SM Prime Holdings, Inc. www.smprime.com ✓
157. MRC MRC Allied Industries, Inc. 222. SGI Solid Group, Inc. www.solidgroup.com.ph ✓
158. MUSX MUSX Corporation www.musxcorp.com ✓ 223. SOC South China Resources, Inc. www.southchinaresourcesinc.com.ph ✓
159. NRCP National Reinsurance Corporation of the Philippines www.nrcp.com.ph ✓ 224. CMT Southeast Asia Cement Holdings, Inc. ✓
160. NXT NextStage, Inc. 225. SPC SPC Power Corporation www.salconpower.com ✓
161. NIKL Nickel Asia Corporation www.nickelasia.com 226. SPH Splash Corporation www.splash.com.ph ✓
162. NI NiHao Mineral Resources International, Inc. www.nihaomining.com ✓ 227. SLI Sta. Lucia Land, Inc. www.stalucialand.com.ph ✓
163. OM Omico Corporation ✓ 228. STN Steniel Manufacturing Corporation ✓
164. ORE Oriental Peninsula Resources Group, Inc. www.orientalpeninsula.com ✓ 229. SLF Sun Life Financial Inc. www.sunlife.com
165. OPM Oriental Petroleum and Minerals Corporation www.opmc.com.ph ✓ 230. SUN Suntrust Home Developers, Inc. www.suntrusthomedevelopers.com ✓
166. LOTO Pacific Online Systems Corporation www.loto.com.ph ✓ 231. SRDC Supercity Realty Development Corporation www.supercity.com.ph ✓
167. PA Pacifica, Inc. ✓ 232. SFI Swift Foods, Inc. www.myswiftfoods.com.ph ✓
168. PAL PAL Holdings, Inc. www.philippineairlines.com ✓ 233. TDY Tanduay Holdings, Inc. www.tanduay.com ✓
169. PMPC Panasonic Manufacturing Philippines Corporation www.panasonic.com.ph ✓ 234. PSE The Philippine Stock Exchange, Inc. www.pse.com.ph ✓
170. PCKH Pancake House, Inc. www.pancakehouse.biz ✓ 235. OV The Philodrill Corporation www.philodrill.com ✓
171. PAX Paxys, Inc. www.paxys.com 236. T TKC Steel Corporation www.tkcsteel.com ✓
172. PIP Pepsi-Cola Products Philippines, Inc. www.pepsiphilippines.com ✓ 237. TA Trans-Asia Oil and Energy Development Corporation www.transasia-energy.com ✓
173. PERC PetroEnergy Resources Corporation www.petroenergy.com.ph ✓ 238. TBGI Transpacific Broadband Group Int`l. Inc. www.tbgi.net.ph ✓
174. PCOR Petron Corporation www.petron.com ✓ 239. MK UEM Development Phils., Inc. ✓
175. PHC Philcomsat Holdings Corporation www.philcomsat.com.ph 240. UNI Unioil Resources & Holdings Company, Inc.
176. PX Philex Mining Corporation www.philexmining.com.ph ✓ 241. UBP Union Bank of the Philippines, Inc. www.unionbankph.com ✓
177. PBC Philippine Bank of Communications www.pbcom.com.ph ✓ 242. UPM United Paragon Mining Corporation www.unitedparagon.com ✓
178. PHES Philippine Estates Corporation www.phes.net ✓ 243. UP Universal Rightfield Property Holdings, Inc.*
179. TEL Philippine Long Distance Telephone Company www.pldt.com.ph ✓ 244. URC Universal Robina Corporation www2.urc.com.ph ✓
180. PNB Philippine National Bank www.pnb.com.ph ✓ 245. UW Uniwide Holdings, Inc. www.uni-wide.com
181. PNC Philippine National Construction Corporation www.pncc.com.ph ✓ 246. V Vantage Equities, Inc. www.ivantage.ph ✓
182. PRC Philippine Racing Club, Inc. www.santa-ana-park.com 247. VMC Victorias Milling Company, Inc. www.victoriasmilling.com
183. RLT Philippine Realty and Holdings Corporation www.philrlty.com ✓ 248. VLL Vista Land & Lifescapes, Inc. www.vistaland.com.ph ✓
184. PSB Philippine Savings Bank www.psbank.com.ph ✓ 249. VITA Vitarich Corporation www.vitarich.com ✓
185. SEVN Philippine Seven Corporation www.7-eleven.com.ph ✓ 250. VVT Vivant Corporation www.vivant.com.ph ✓
186. PTT Philippine Telegraph and Telephone Corporation www.ptt.net.ph 251. VUL Vulcan Industrial & Mining Corporation www.vulcanminingandpetroleum.webs.com ✓
187. TFC Philippine Tobacco Flue-Curing & Redrying Corporation www.ptfc-brc.com/info ✓ 252. WPI Waterfront Philippines, Incorporated www.waterfronthotels.com.ph ✓
188. PTC Philippine Trust Company www.philtrustbank.com ✓ 253. WIN Wellex Industries, Incorporated www.wellex.com.ph ✓
189. WEB PhilWeb Corporation www.philweb.com.ph 254. WHI Wise Holdings, Inc.*
190. PHN Phinma Corporation www.phinmacorp.com.ph ✓ 255. ZHI Zeus Holdings, Inc. www.zeusholdingsinc.com ✓
191. PNX Phoenix Petroleum Philippines, Inc. www.phoenixphilippines.com ✓
* Delisted effective March 10, 2011

The Philippine Stock Exchange, Inc. 2010 Annual Report 46 47 Charging to New Highs
PSE Board of Directors
As of March 31, 2011

Cornelio T. Peralta Hans B. Sicat Omelita J. Tiangco Anastacio R. Martirez Jose T. Pardo Eusebio H. Tanco
Chairman & Independent Director President & Chief Executive Officer Director-Treasurer Director Independent Director Director

David O. Chua Francis Chua Ismael G. Cruz Robert G. Vergara Alejandro T. Yu Ma. Vivian Yuchengco
Director Director Director Director Director Director

2010 Directors Audit Committee

Hans B. Sicat Jose Luis S. Javier  (Chairman)

Independent Director Anastacio R. Martirez
Chairman from 1 May 2010 until 12 January 2011
Amor C. Iliscupidez
Eusebio H. Tanco
Val Antonio B. Suarez
Director Cornelio T. Peralta
President & Chief Executive Officer Alejandro T. Yu
from 28 July 2010 to 13 December 2010

Estrella C. Elamparo Corporate Governance Committee

Director from 1 May 2010 to 23 June 2010; Jose T. Pardo (appointed as Chairman on 26 January 2011)
Re-elected on 28 July 2010 until 6 October 2010.
Jose Luis S. Javier
Lorenzo Sixto Lichauco Anastacio R. Martirez
Director from 23 June 2010 until 28 July 2010 Amor C. Iliscupidez
Omelita J. Tiangco
Vicente L. Panlilio Robert G. Vergara (appointed as member on 6 October 2010)
Independent Director from 1 May 2010 to Ma. Vivian Yuchengco
28 July 2010; Re-elected 13 December 2010
to 12 January 2011 Cornelio T. Peralta
Eddie T. Gobing Amor C. Iliscupidez Jose Luis S. Javier Aissa V. Encarnacion
Director Director Independent Director Corporate Secretary

The Philippine Stock Exchange, Inc. 2010 Annual Report 48 49 Charging to New Highs
Executive Officers
As of March 31, 2011
Hans B. Sicat
President & Chief Executive Officer
Jinky A. Alora
Assistant Vice President and Head,
Trading Participants Regulation
Department / OIC,
Market Regulation Division
Executive Officers
2010
Val Antonio B. Suarez
Senior Vice President &
Chief Operating Officer 3
President & Chief
Executive Officer 4
The Philippine Stock Exchange, Inc. 2010 Annual Report
J. Argel G. Astudillo
1
Vice President,
Corporate Governance,
Risk & Compliance 2
Joselito V. Banaag
Assistant Vice President,
General Counsel
Roel A. Refran
Vice President, General
Counsel and Concurrent
Head of Issuer
Regulation Division 5
Marietta U. Tan
Vice President and Head,
Finance and Investments Division
Rachelle C. Blanch
Assistant Vice President and Head,
Market Operations Division/
OIC, Technology Division
Susana L. Serad Enrico M. Trinidad
Vice President and Head, Vice President and Head,
Technology Division 6 Capital Markets
Development Division/OIC,
Corporate Services Division 7
50
Department & Section Heads
Officers-in-Charge
As of March 31, 2011
Mark Frederick V. Visda Jose Antonio S. Vilar Leonardo G. Quinitio Elisa L. Benavidez Eliza S. Rodriguez Gerard D. Roura Marie Grace A. Santos
Head, Corporate Planning Head, Marketing Head, Market Education Head, Budget and Head, Accounting OIC, Market Head, Prosecution and
& Research Section 1 Services Department Department/ Treasury Department Department Surveillance Department Enforcement Department
OIC, Capital Markets
Development Division 2
Roel M. Villanueva Armando T. Arturo Sheryl V. Perillo Sheryl J. Lopez Carlos C. Marsha Angelyn Janet A. Encarnacion
Head, Market Head, Trading Head, Trading Assistant Head, Broker Luarte M. Resurreccion Head, Disclosure Department
Control Department Operations, Ayala Development Systems Support and
Precilla S. Sandoval Department Certification Department
Head, Trading Head, Listings Department/
Assistant Vice President and Head, Operations, Tektite OIC, Issuer Regulation Division 3
Market Data Business Department
Department & Section Heads
Officers-in-Charge (2010)
1 As of 12 January 2011
2 As of 1 December 2010
3 From 18 January 2010 to 28 July 2010
4 From 28 July 2010 to 13 December 2010
5 On study leave for two years effective 16 July 2010
6 Until 31 January 2011
7 Until 15 January 2011
8 Until 7 March 2011
Sebastian E. Olaivar, Jr. Herbert G. Vergara Josielyn S. Arellano Elizabeth S. Lacson Tristan G. Gillego Flor L. Ofilada Flordelyn G. Aquino
Head, Human Resources & Officer, Administration Head, Human Resources Head, Public and Investor Head, Infrastructure and Strategic Management Head, Human Resources
Administration Department 4 Section Employee Relations Relations Section Systems Administration Officer/OIC, Corporate Employee Services Section
Jhoanna Maria Section Department Governance Office
Roxanne S. Modesto
1 As of 1 February 2011
Assistant Vice President and 2 As of 22 January 2011
Head, Human Resources and * Renato B. Castillo, Jr. *Laarni G. Ladan-Cleofe
3 As of 22 January 2011 OIC, Applications Development Department Head, Corporate Planning and Research Section
Administration Department 8 4 As of 1 February 2011 as of 3 February 2011 until 30 November 2010
51 Charging to New Highs
SCCP Board of Directors & Officers
As of March 31, 2011
General Nature and Scope of Business
of Registrant and its Subsidiaries
The Philippine Stock Exchange, Inc. was
incorporated on July 14, 1992 as a non-stock
corporation. The Company became a stock
corporation on August 3, 2001. On December 15,
2003, pursuant to the demutualization mandate of
Republic Act No. 8799, or the Securities Regulation
Code, the Company’s outstanding capital stock was
listed by way of introduction. On February 18, 2004,
Cornelio T. Peralta Hans B. Sicat Omelita J. Tiangco William L. Ang the Company sold 6,077,505 shares from its unissued
Chairman 1 Director Director - Treasurer Director stock to five strategic investors by way of private
President & Chief Executive Officer 2
placement that was approved by the Securities and
Exchange Commission. The strategic investors were
the PLDT Beneficial Trust Fund, SMC Retirement
Fund, Government Service Insurance System, Kim
Eng Investment, Ltd., and KE Strategic Pte. Ltd.
The Company’s revenues are primarily derived
from listing-related fees. The Company charges
listing fees for initial public offerings and additional
listings, and for annual listing maintenance. Other
sources of revenue are membership, transaction,
data feed, and miscellaneous fees, which include
service fees. Membership and transaction fees are
charged to trading participants while date feed fees
are collected from data vendors.
Emmanuel O. Bautista Francis Chua Eddie T. Gobing Amor C. Iliscupidez
Director Director Director Director 3
Subsidiary and Affiliates
The Securities Clearing Corporation of the
Philippines (SCCP) is a wholly-owned PSE subsidiary
organized primarily as a clearance and settlement
agency for SCCP-eligible trades executed through
the facilities of the PSE. SCCP is responsible
for (a) synchronizing the settlement of funds for
transactions of clearing members and the transfer
of securities through Delivery versus Payment (DVP)
clearing; (b) the administration of the Clearing and
Trade Guaranty Fund (CTGF) and guaranteeing the
settlement of trade though the implementation of its
Fails Management System in the event of a Trading
Participant’s default; and (c) performance of Risk
Management and Monitoring to ensure final and
Jose Luis S. Javier Robert G. Vergara Alejandro T. Yu irrevocable settlement.
Director Director 4 Director
2010 Directors
The Company is also a shareholder of the Philippine
Val Antonio B. Suarez Dealing System Holdings Corporation (PDSHC),
Director from 15 June 2011 to 17 August 2010;
Appointed as Director - President the holding company of the Philippine Dealing
and Chief Executive Officer & Exchange Corporation (PDEX), otherwise
from 17 August 2010 to 12 January 2011
known as the Fixed Income Exchange (FIE), the
Estrella C. Elamparo Philippine Depository & Trust Corp. (PDTC) and
Director from 15 June 2010 to 27 October 2010
the Philippines Securities Settlement Corporation
(PSSC). As of December 31, 2010, the Company
1 As of 19 January 2011 is a stockholder of record of 1,311,439 shares, or
2 As of 19 January 2011 Renee D. Rubio Aissa V. Encarnacion 20.98%, of all of the issued and outstanding shares.
3 As of 19 January 2011 Chief Operating Officer Corporate Secretary
4 As of 27 October 2010
The Philippine Stock Exchange, Inc. 2010 Annual Report 52
Information Required by
Securities Regulation Code
Properties
The Company is the registered owner of offices at
the PSE Centre in Ortigas Center, Pasig City, and the
PSE Plaza along Ayala Avenue, Makati City.
In addition, over a seven-year period beginning
January 2005, the outstanding shares of Crescent West
Development Corporation (CWDC), a subsidiary of
Fort Bonifacio Development Corporation (FBDC)
and the registered owner of a 2,182 square meter lot
in Bonifacio Global City, will be transferred to the
Company. In June 2007, the donation of all remaining
CWDC shares was deferred pending negotiations
among the Company, FBDC and Ayala Land,
Inc. for the joint development of an iconic office
building in Bonifacio Global City for the relocation
of the Company’s headquarters, majority of the
management offices and unified operations in equities
and securities for the National Capital Region.
Market Information
Principal market where the registrant’s common
equity is traded:
The common stock of the Company is listed in The
Philippine Stock Exchange, Inc.
Stock Prices
The high and low prices of the Company’s shares in
the stock exchange for each quarter of fiscal years
2009 and 2010 are as follows:
2009 High Low
Q1 P174.00 P116.00
Q2 P320.00 P170.00
Q3 P350.00 P255.00
Q4 P357.50 P300.00
2010 High Low
Q1 P320.00 P242.00
Q2 P312.50 P260.00
Q3 P500.00 P250.00
Q4 P428.00 P350.00
The high and low prices of the Company’s shares
in January - March 2011 are P375.00 and P340.00,
respectively. The stock price of the Company closed
at P345.00 on 7 March 2011.
53 Charging to New Highs
 Report of the Market
Integrity Board
Holders The Market Integrity Board (“MIB”) is pleased to report
The number of shareholders of record as of 28 February 2011 is 245. on the results of its oversight of the Market Regulation
Total shares outstanding as of 28 February 2011 is 30,604,363 shares with a par value of P1.00. Division’s (MRD) regulatory functions for the calendar
year 2010.
The top twenty (20) holders as of 28 February 2011 are as follows:

Stockholder Nationality No. of Shares Amount Percentage The MIB is the Exchange’s independent body exercising
control and supervision over the regulatory activities of
1 PCD Nominee Corp. Filipino 20,303,285 20,242,886.00 66.34%
the MRD. The MIB’s oversight authority includes the
2 San Miguel Corporation Retirement Plan Filipino 3,148,000 3,148,000.00 10.29%
review of the decisions, resolutions and summary actions
3 PCD Nominee Corp. Other Alien 1,015,605 4,043,139.00 3.32%
of the MRD, as well as supervision over the MRD’s
4 BA Investments & Holdings, Inc. Filipino 200,000 200,000.00 0.65% regulatory activities such as the promulgation of rules
5 G.D. Tan & Company, Inc Filipino 100,300 100,300.00 0.33% relating to audit, compliance and surveillance, adaptation
6 A.T. De Castro Sec. Corp. Filipino 100,000 100,000.00 0.33% to local conditions of best practices on governance among
7 Ansaldo Godinez & Company, Inc. Filipino 100,000 100,000.00 0.33% trading participants, and adoption of such other measures
8 Apex Phils. Equities Corporation Filipino 100,000 100,000.00 0.33% necessary to strengthen the self-regulatory functions of
9 BDO Securities Corporation Filipino 100,000 100,000.00 0.33% the Exchange. As an autonomous body, the decisions
10 Christfund Securities (Phils.), Inc. Other Alien 100,000 100,000.00 0.33% and actions of the MIB are not subject to review by
11 Citicorp Securities International (RP) American 100,000 100,000.00 0.33% the Exchange’s board of directors but may be appealed
12 CLSA Philippines, Inc. Dutch 100,000 100,300.00 0.33% directly to the Securities and Exchange Commission
13 DBS Vickers Securities (Phils.), Inc. Filipino 100,000 100,000.00 0.33% (“SEC”). It has five regular members, three of whom are
The MIB likewise ensures coordination by the
14 Deutsche Regis Partners, Inc. Filipino 100,000 100,000.00 0.33%
not affiliated with the trading participants, including an
Exchange with the SEC and other governmental
independent director of the Exchange. The other two
15 FEB Stock Brokers, Inc. Filipino 100,000 100,000.00 0.33% agencies on market regulation. It directed the MRD
members are trading participant representatives who are
16 Chan, Vicky l. Filipino 100,000 100,000.00 0.33% to work with the SEC for the referral and handling of
not directors of the Exchange. Except for the chairman, matters which are beyond the Exchange’s jurisdiction as
17 Chia Kim Teck Singaporean 100,000 100,000.00 0.33% all MIB members have alternates.
18 Chilip, Christopher L. Filipino 100,000 100,000.00 0.33% an SRO. These include the prosecution of the criminal
19 Chong, Jose Filipino 100,000 100,000.00 0.33%
violation of the securities laws by market players. It
The MIB steadfastly enforces the relevant rules and instructed the MRD to assist the Department of Justice
20 Cruz, Ismael G. Filipino 100,000 100,000.00 0.33%
regulations which the Exchange, as a self-regulatory and individual investors in the prosecution of criminal
organization (“SRO”), has adopted to maintain the complaints against erring trading participants.
integrity of the market and minimize the risk of the
Dividends investing public. The MIB guides the MRD in the In continuation of the efforts directed towards
Dividends per Share: reasonable, fair and consistent enforcement of the SRO regulatory independence that the MIB started in 2009,
rules of the Exchange and has issued various directives the MIB steadfastly pursued the organization and
P8.80 in 2007. and guidelines for the MRD to follow in discharging its approval of the spin-off of the regulatory functions
P20.00 in 2008. regulatory functions. of the Exchange into a separate and independent
company during the previous year. Significant steps
P8.00 in 2009. were undertaken by the MIB for the incorporation and
P10.00 in 2010. During the previous year, the MIB, in the exercise of its organization of the independent company to further
power to review decisions and resolutions of the MRD, strengthen the independence and bolster the integrity
P12.00 in 2011 broken down as P6.16 regular dividend and P5.84 special cash dividend to stockholders resolved seventeen (17) cases upon appeal by the relevant of the regulatory functions of the Exchange.
of record as of 24 March 2011 payable on 11 April 2011. parties on (a) the regulatory audit findings, (b) spot audit
findings and (c) complaints of violations of the securities
Dividend Policy laws by certain trading participants. Notwithstanding the recent encouraging turn of local
economic conditions, the MIB believes that the necessity
The Company adopts a policy for the declaration of regular cash dividend out of the unrestricted
to constantly monitor and oversee the regulation of
retained earnings equivalent to fifty percent (50%) of the Company’s audited net income. The In pursuance of the role of the MIB to protect the investing the market persists. Trusting in the continuing need to
declaration of dividends is dependent on the cash flow and financial condition of the Company. public and the market, the MIB saw to the successful strengthen the integrity of the capital market industry,
approval of the following: (a) the Rules on Public Bidding the MIB will remain true to its mandate of carrying
of the PSE Trading Right and Other Trade-Related Assets out its oversight authority and enforcing the relevant
Recent Sale of Unregistered/Exempt Securities of Failed Trading Participants and the (b) the Rules on rules and regulations of the Exchange.
The common shares granted to eligible employees pursuant to the Employee Stock Purchase Plan Application for Operation of Trading Right by Trading
is an exempt transaction under Section 10.2 of the Securities Regulation Code, as stated under Participants. The former set of rules is designed to promote
Resolution No. 179 Series of 2008 of the Securities and Exchange Commission. the transparency and ensure the integrity of the sale of
trading right and other trade-related assets of failed trading
participants. The second set, on the other hand, establishes
the process to be observed by trading right owners in
applying for the operation of a trading right. Both provides
for pre-qualification procedures for screening, and grounds
for disqualification, of applicants intending to participate
in the industry as trading participants. Atty. Cornelio T. Peralta
Chairman

The Philippine Stock Exchange, Inc. 2010 Annual Report 54 55 Charging to New Highs
Report of the Corporate
Governance Committee
On behalf of the Corporate Governance Committee (“The Committee”), I am
pleased to report the activities undertaken by this team in 2010. The goals of the
Committee remain the same from the previous year --- to further strengthen the
Philippine Stock Exchange (PSE) as an institution and promote good governance
to all of its stakeholders. In conducting its work, the Committee is guided by the
goals of improving efficiency in operations, finding the means necessary to increase
confidence of investors and adding value for all its stakeholders through promoting
good governance practices.
Perhaps the largest output relating to Corporate Governance for the year was the
release of the PSE’s Corporate Governance Guidelines (CG Guidebook) for Listed
Companies last November 2010. The CG Guidebook contains ten point guidelines
to govern the relationships among the Board, management and shareholders of a
company. With the reporting requirement on the status of listed companies’ ability
to conform to these guidelines, the PSE hopes to obtain a snapshot of the state of
corporate governance in the country.
Despite the robustness of the PSE’s work pipeline, healthy trading levels and
impeccable market performance in 2010, the Exchange saw two Presidents leave
their posts in succession. Intensified scrutiny from our regulator, the Securities and
Exchange Commission, also added a dynamic to the potentially destabilizing force of
the top job being vacant at critical junctures.
The Committee participated via a subcommittee called the Search Committee, in
assessing various candidates for the President’s post, and a general review of the
PSE’s organization. The efforts of the Search Committee were complemented by
hiring a professional, global search firm to diversify the network of candidates which
board members and management proposed. The undersigned was not a candidate
during these periods. The latter task was deemed important in light of addressing
both structural and succession challenges that the management team faced.
Along with the task of stabilizing the management structure, the Committee was
instrumental in finding a new Vice President for Risk Management and Corporate
Governance. With this hire, the day-to-day work of assessing the firm’s risk profile, and
mitigants to these risks, along with shepherding the corporate governance initiatives
of the Exchange moved to this person and his team. The Committee believes this is
the appropriate coverage model.
The Committee also helped in putting together and undertaking the full year
performance review of the Management Committee and their respective staff.
This was the first time a firm-wide, systematic assessment was undertaken, with the
leadership of the Human Resources team. Both team and individual goal setting for
the calendar year was put in place. It is hoped that with consistent monitoring and
the willingness to follow this approach, the process will be institutionalized for the
coming years.
Hans B. Sicat
Chairman
December 31, 2010
The Philippine Stock Exchange, Inc. 2010 Annual Report 56
Report of the
Audit Committee
For the Year Ended December 31, 2010
The Audit Committee’s roles and responsibilities are defined in the Audit Committee
Charter approved by the Board of Directors. The Audit Committee provides assistance to
the Board of Directors in fulfilling its oversight responsibility to the shareholders relating to:
a) the Exchange’s financial statements and the financial reporting process,
b) the systems of internal controls and financial reporting controls,
c) the internal audit activity,
d) the annual independent audit of the Exchange’s financial statements and,
e) compliance with legal and regulatory matters.
In compliance with the Audit Committee Charter, the Committee confirms that:
• An independent director chairs the Audit Committee;
• The Committee had eight (8) meetings during the year; more than majority of the
members were present in all these meetings;
• The Committee recommended to the Board of Directors the re-appointment of
SGV & Co. as independent external auditor for 2010, based on the review of
their performance and \ qualifications, including consideration of management’s
recommendation;
• The Committee reviewed and discussed the quarterly consolidated financial
statements and annual audited consolidated financial statements of the Exchange,
and its subsidiary, SCCP, including Management’s Discussion and Analysis of
Financial Condition and Results of Operations as of and for the year ended
December 31, 2010, with management and SGV & Co.;
Jose Luis S. Javier
These activities were performed in the following context: Committee Chair
• Management has the primary responsibility for the financial statements and the
reporting process.
• SGV & Co. is responsible for expressing an opinion on the conformity of the
Exchange’s annual audited consolidated financial statements with Philippine
Financial Reporting Standards.
• The Committee discussed and approved the overall scope and the respective audit
plans of the Exchange’s Internal Auditors and SGV & Co. The Committee also
discussed the results of their audits and their assessment of the Exchange’s internal
controls and the overall quality of the financial reporting process;
• The Committee reviewed and approved all audit services provided by SGV & Co.
to the Exchange and the related fees for such services, and have concluded that
such services do not impair their independence;
• The Committee reviewed the reports of the Internal Auditors, ensuring that
management is taking appropriate corrective actions in a timely manner,
particularly on information technology and the new trading system.
Based on the reviews and discussions undertaken, and subject to the limitations on our roles
and responsibilities referred to above, the Audit Committee recommended to the Board
of Directors the inclusion of the Exchange’s audited consolidated financial statements as
of and for the year ended December 31, 2010 in the Exchange’s Annual Report to the
Stockholders and for filing with the Securities and Exchange Commission.
March 28, 2011.
Jose Luis S. Javier Cornelio T. Peralta Amor C. Iliscupidez
Committee Chair Member Member
Eusebio H. Tanco Anastacio R. Martirez Alejandro T. Yu
Member Member Member
57 Charging to New Highs
Statement of Management’s Independent Auditors’ Report
Responsibility for
Financial Statements The Stockholders and the Board of Directors
The Philippine Stock Exchange, Inc.

We have audited the accompanying consolidated financial statements of The Philippine Stock Exchange, Inc. and
Subsidiary (the Group), which comprise the consolidated balance sheets as at December 31, 2010 and 2009, and
the consolidated statements of comprehensive income, statements of changes in equity and statements of cash
flows for each of the three years in the period ended December 31, 2010, and a summary of significant accounting
policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with Philippine Financial Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We
conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the consolidated financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position
of The Philippine Stock Exchange, Inc. and Subsidiary as at December 31, 2010 and 2009, and their financial
performance and their cash flows for each of the three years in the period ended December 31, 2010 in accordance
with Philippine Financial Reporting Standards.

SYCIP GORRES VELAYO & CO.

Ramon D. Dizon
Partner
CPA Certificate No. 46047
SEC Accreditation No. 0077-AR-2
Tax Identification No. 102-085-577
BIR Accreditation No. 08-001998-17-2009,
June 1, 2009, Valid until May 31, 2012
PTR No. 2641521, January 3, 2011, Makati City

March 9, 2011

The Philippine Stock Exchange, Inc. 2010 Annual Report 58 59 Charging to New Highs
 THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY The Philippine Stock Exchange, Inc. and Subsidiary
The Philippine Stock Exchange, Inc. and Subsidiary THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS Consolodated Statements of Comprehensive Income
Consolodated Balance Sheets CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

December 31 Years Ended December 31

2010 2009 2010 2009 2008
REVENUES
ASSETS Listing-related fees:
Listing P
= 230,624,139 P
= 66,200,050 P
= 172,452,851
Current Assets Listing maintenance 169,422,761 134,812,097 166,904,665
Cash and cash equivalents (Notes 4, 5 and 6) P
= 389,145,482 P
= 393,730,584 Processing 1,840,000 1,080,000 1,190,000
Short-term available-for-sale investments (Notes 4, 5 and 7) 837,844,003 315,897,605 Service fees 215,604,239 177,575,563 136,404,494
Receivables (Notes 4, 5 and 8) 87,932,429 57,950,759 Trading-related fees (Note 22):
Other current assets 25,517,115 23,753,389 Transaction 97,486,442 66,205,348 58,837,694
Total Current Assets 1,340,439,029 791,332,337 Block sales 23,251,314 33,210,297 17,552,424
Data feed 38,633,431 21,624,533 19,161,384
Noncurrent Assets Subscription 16,658,219 18,243,119 16,754,391
Long-term available-for-sale investments (Notes 4, 5 and 7) 126,782,957 610,472,899 Other revenues (Notes 22 and 26) 28,931,365 18,438,700 14,021,315
Property and equipment (Note 9) 570,316,797 509,183,881 822,451,910 537,389,707 603,279,218
Investment in an associate (Note 10) 142,681,484 116,099,824 OTHER INCOME
Retirement asset (Note 20) 22,072,357 10,784,612 Interest income (Note 16) 78,593,045 86,830,346 110,703,140
Other assets (Notes 4 and 11) 80,065,581 48,824,763 Gain on sale of available-for-sale investments (Note 7) 36,947,135 49,487 –
Total Noncurrent Assets 941,919,176 1,295,365,979 Dividend income 31,200 30,950 33,250
Foreign exchange gain – – 16,697,591
P
= 2,282,358,205 P
= 2,086,698,316 115,571,380 86,910,783 127,433,981
TOTAL REVENUES 938,023,290 624,300,490 730,713,199
EXPENSES
LIABILITIES AND EQUITY Compensation and other related
staff costs (Notes 17, 20, 22 and 25) 178,686,900 166,807,334 128,965,716
Current Liabilities Depreciation (Note 9) 52,998,347 34,011,571 29,249,503
Accounts payable and other current liabilities (Notes 4, 5 and 12) P
= 146,583,228 P
= 108,328,702 Occupancy costs (Note 18) 40,684,406 41,080,545 41,400,935
Income tax payable 53,110,521 29,375,340 Professional fees 29,988,040 38,647,028 33,367,156
Deferred fees (Note 13) 55,541,007 28,685,719 Repairs and maintenance 24,712,420 12,864,360 11,702,342
Total Current Liabilities 255,234,756 166,389,761 Telecommunication 11,680,378 9,783,270 9,643,725
Foreign exchange loss 8,794,848 3,565,395 –
Noncurrent Liabilities Membership development 6,129,895 5,801,651 6,302,631
Retirement liabilities (Note 20) 6,033,056 4,893,952 Taxes and licenses 5,897,397 5,397,000 5,978,986
Travel and transportation 5,780,339 4,754,430 8,536,990
EQUITY Amortization of computer software (Note 11) 5,085,741 5,290,538 5,271,530
Capital stock (Notes 1 and 15) 30,704,370 30,655,012 Loss on asset write-off (Note 11) 13,692,355 – –
Additional paid-in capital (Notes 1, 15 and 25) 1,018,810,564 1,000,614,613 Office supplies 4,451,143 4,102,250 3,281,973
Treasury stock (Note 15) (68,000,007) (68,000,007) Market development 1,642,992 1,072,638 3,879,037
Retained earnings: Donation and contributions 608,775 1,560,000 2,200,000
Provision for (recovery of)
Unappropriated 564,718,740 451,771,509
impairment losses (Notes 7, 8 and 10) (9,000) (4,701,263) 1,945,170
Donated capital (Note 14) 387,637,585 387,637,585
Other expenses 16,370,142 16,525,279 11,062,042
Appropriated 71,000,000 71,000,000
407,195,118 346,562,026 302,787,736
Net unrealized gains on available-for-sale
EQUITY IN NET INCOME (LOSS)
investments (Note 7) 16,219,141 41,735,891 OF AN ASSOCIATE (Note 10) P
= 26,581,660 P
= 3,553,274 (P
= 4,014,689)
Total Equity 2,021,090,393 1,915,414,603 INCOME BEFORE INCOME TAX 557,409,832 281,291,738 423,910,774
PROVISION FOR INCOME TAX (Note 19) 139,912,541 73,548,490 132,431,384
P
= 2,282,358,205 P
= 2,086,698,316
NET INCOME 417,497,291 207,743,248 291,479,390
OTHER COMPREHENSIVE INCOME
See accompanying Notes to Consolidated Financial Statements. Net unrealized gains (losses) on available-for-sale
investments (Note 7) (25,516,750) 25,301,403 (41,171,692)
TOTAL COMPREHENSIVE INCOME P
= 391,980,541 P
= 233,044,651 P
= 250,307,698
Basic/Diluted Earnings Per Share (Note 21) P
= 13.66 P= 6.81 P= 9.55

See accompanying Notes to Consolidated Financial Statements.

The Philippine Stock Exchange, Inc. 2010 Annual Report 60 61 Charging to New Highs
 – (304,550,060)

– (243,178,000)

(68,000,006)

– (305,550,098)
= 1,915,414,603

= 2,021,090,393

= 1,907,042,692

= 1,915,414,603

= 2,024,582,698

= 1,907,042,692
Total

391,980,541
18,245,309

233,044,651
18,505,259
1

250,307,698
5,702,400

–
THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
CONSOLIDATED
The STATEMENTS
Philippine Stock Exchange,OF CASH
Inc. andFLOWS
Subsidiary

= 41,735,891 P

= 16,219,141 P

= 16,434,488 P

= 41,735,891 P

= 57,606,180 P

= 16,434,488 P
Consolodated Statements of Cash Flows

(Note 7)

(25,516,750)

(41,171,692)
Net Unrealized

Investments
Available
for-Sale
Gain on

25,301,403
–
–

–
–
–

–
Years Ended December 31
2010 2009 2008

P
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax P
= 557,409,832 P
= 281,291,738 P
= 423,910,774
(Note 15)
Capital Appropriated

= 71,000,000
–
–
–
= 71,000,000

= 71,000,000
–
–
–
–
= 71,000,000

= 3,000,000
–
–
–
68,000,000
–
–
= 71,000,000
Adjustments for:
Interest income (Note 16) (78,593,045) (86,830,346) (110,703,140)
Depreciation (Note 9) 52,998,347 34,011,571 29,249,503
Gain on sale of available-for-sale investments (Note 7) (36,947,135) (49,487) –

P
Equity in net (income) loss of an associate (Note 10) (26,581,660) (3,553,274) 4,014,689
P

P
Loss on asset write-off (Note 11) 13,692,355 – –
Retained Earnings

Retirement expense (Note 20) 10,824,369 12,014,599 6,583,073

(Note 14)
Donated

= 387,637,585
–
–
–
= 387,637,585

= 387,637,585
–
–
–
–
= 387,637,585

= 387,637,585
–
–
–
–
–
–
= 387,637,585
Share-based payment expense (Note 25) 6,463,639 4,368,827 285,186
Amortization of computer software (Note 11) 5,085,741 5,290,538 5,271,530
Loss (gain) on disposal of property and equipment 291,688 (207,301) 422,754
Provision for (recovery of) impairment losses
(Notes 7 and 8) (9,000) (4,701,263) 1,945,170
= 451,771,509 P

= 564,718,740 P

= 487,206,261 P

= 451,771,509 P

= 584,554,480 P

= 487,206,261 P
Income before working capital changes 504,635,131 241,635,602 360,979,539
Changes in operating assets and liabilities:
Stock Unappropriated
(Note 15)

– (304,550,060)

– (243,178,000)

(68,000,000)
– (305,550,098)
(15,277,511)
417,497,291
–

207,743,248
–
–

291,479,390
–
–
Decrease (increase) in:
Receivables (64,354,370) 10,887,958 118,044,599
Other current assets (1,763,726) (4,452,814) (11,736,112)
Increase (decrease) in accounts
payable and other current liabilities 58,646,175 17,534,183 (113,750,900)
= 68,000,007) P

= 68,000,007) P

= 68,000,008) P

= 68,000,007) P

= 2) P

= 68,000,008) P
Cash generated from operations 497,163,210 265,604,929 353,537,126
Interest received 112,974,745 82,142,448 113,312,408
(Note 15)

(68,000,006)
Treasury

–
–

–
–
1

–
–

–
(P

Income taxes paid (116,244,171) (60,948,627) (133,096,730)

THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY

Benefits paid (745,767) – –

Cash provided by operating activities 493,148,017 286,798,750 333,752,804
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CASH FLOWS FROM INVESTING ACTIVITIES

= 1,000,614,613 (P

(P

(P

(P

(P
Proceeds from sale/maturities of:
Available-for-sale investments (Note 7) 477,404,381 493,311,295 542,350,696
15 and 25)
Paid-in
Additional

Capital

–
18,195,951
–

= 982,167,102
–
18,447,511
–
–
= 1,000,614,613

= 976,506,942
–
5,660,160
–
–
–
–
= 982,167,102
(Notes 1,

Property and equipment (Note 9) 4,126,914 2,530,969 3,325,427

= 1,018,810,564

Short-term investments – – 312,700,000

The Philippine Stock Exchange, Inc. and Subsidiary

Acquisitions of:
Available-for-sale investments (Note 7) (504,230,452) (185,396,971) (659,642,273)
Consolodated Statements of Changes in Equity

Property and equipment (Note 9) (118,549,865) (93,332,764) (171,372,753)

P

Computer software (Note 11) (13,770,880) – (285,116)

= 30,655,012 P

Decrease (increase) in other assets (34,291,223) 5,941,273 (6,570,816)

= 30,704,370 P
(Notes 1 and 15)

Contribution to plan assets (22,117,243) (23,938,052) –

Capital Stock

–
49,358
–

= 30,597,264
–
57,748
–
–
= 30,655,012

= 15,277,513
–
42,240
–
–
–
15,277,511
= 30,597,264

Additional investment in an associate – – (34,350,000)

Net cash provided by (used in) investing activities (211,428,368) 199,115,750 (13,844,835)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share-based payment 18,245,309 18,505,259 5,422,349
P

See accompanying Notes to Consolidated Financial Statements.

Acquisition (reissuance) of treasury stock (Note 15) – 1 (68,000,000)

Dividend payments (Note 15) (304,550,060) (243,178,000) (309,966,882)
Net cash used in financing activities (286,304,751) (224,672,740) (372,544,533)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (4,585,102) 261,241,760 (52,636,564)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 393,730,584 132,488,824 185,125,388
CASH AND CASH EQUIVALENTS
Balances at December 31, 2010

Balances at December 31, 2009

Balances at December 31, 2008

AT END OF YEAR P
= 389,145,482 P
= 393,730,584 P
= 132,488,824
Appropriation during the year
Total comprehensive income

Total comprehensive income

Total comprehensive income

Acquisition of treasury stock

Reissuance of treasury stock
Balances at January 1, 2009

Balances at January 1, 2008

Balances at January 1, 2010

See accompanying Notes to Consolidated Financial Statements.

Share -based payments

Share-based payments

Share-based payments

Stock dividends
Cash dividends

Cash dividends

Cash dividends

The Philippine Stock Exchange, Inc. 2010 Annual Report 62 63 Charging to New Highs

THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
The Philippine
NOTES Stock Exchange,
TO CONSOLIDATED Inc. andSTATEMENTS
FINANCIAL Subsidiary
Notes to Consolidated Financial Statements
1. Corporate Information
The Philippine Stock Exchange, Inc. (the Parent Company or the Exchange) was incorporated in
the Philippines on July 14, 1992 as a non-stock corporation primarily to provide and maintain a
convenient and suitable market for the exchange, purchase and sale of all types of securities and
other instruments.
On August 8, 2001, the Parent Company was converted from a non-stock corporation to a stock
corporation (demutualization) with an authorized capital stock of P = 36.8 million divided into
36.8 million shares with a par value of P
= 1.00 per share as prescribed by Republic Act (RA) No.
8799 entitled “Securities Regulation Code” (SRC) and pursuant to a conversion plan approved by
the Securities and Exchange Commission (SEC).
2. Basis of Preparation, Changes in Accounting Policies, and Summary of Significant Accounting
The salient features of the demutualization plan approved by the SEC on August 3, 2001 include,
among others, the following:
a. Conversion of the Parent Company into a stock corporation by amending its Articles of
Incorporation and by-laws;
b. Subscription of each member of 50,000 shares at P
= 1.00 per share. The remaining balance of
the Membership Contributions account of P
= 277.4 million shall be treated as additional paid-in
capital;
c. Issuance of trading rights to brokers in recognition of the existing seat ownership by the
brokers;
d. Separation of ownership of shares and right to operate as a trading participant in the Exchange.
The trading rights shall be transferable without time limitation; and
e. Imposition of a moratorium on the issuance of the new trading rights.
On December 15, 2003, the Parent Company’s shares of stock were listed by way of introduction of
its outstanding shares to comply with the requirements mandated by the SRC, particularly the
conversion of the Parent Company into a stock corporation.
On January 28, 2004, the Parent Company offered 6,077,505 unissued shares to the private sector
as part of on-going efforts to comply with SRC’s mandate regarding the ownership of an Exchange
(see Note 15). Gross proceeds from the private placement offering amounted to
P
= 726.3 million, inclusive of additional paid-in capital of P
= 720.2 million representing premium over
the par value of the common stock. Expenses related to the offering amounting to
P
= 21.1 million were recorded as a reduction of the additional paid-in capital.
Securities Clearing Corporation of the Philippines (SCCP), a 100% owned subsidiary of the
Exchange, is a domestic corporation organized to carry out and strictly implement the following
functions: (1) Delivery-versus-Payment trade settlement; (2) fails management and administration of
the Clearing and Trade Guaranty Fund (CTGF); and (3) risk monitoring and management.
The Philippine Stock Exchange, Inc. 2010 Annual Report 64
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To ensure compliance of clearing members, SCCP is authorized by the SEC to impose fines and
penalties and other sanctions as approved by SCCP’s board of directors (BOD).
SCCP was given a temporary license to operate by the SEC and started its commercial operations
on January 3, 2000. On January 15, 2002, the SEC approved SCCP’s request for a permanent
license as a clearing agency subject to its compliance with the requirements of Section 42 of the
SRC entitled “Registration of Clearing Agency.”
The registered office address of the Parent Company is PSE Plaza, Ayala Triangle, Ayala Avenue
Makati City.
The accompanying consolidated financial statements were authorized for issue by the BOD on
March 9, 2011.
Policies
Basis of Preparation
The accompanying consolidated financial statements of the Parent Company and SCCP
(collectively referred to as the Group) have been prepared in compliance with Philippine Financial
Reporting Standard (PFRS).
The accompanying consolidated financial statements have been prepared on a historical cost basis,
except for available-for-sale (AFS) investments that have been measured at fair value. The financial
statements are presented in Philippine Peso (P= ), which is the Group’s functional and presentation
currency under PFRS. All values are rounded to the nearest peso, except when otherwise
indicated.
Basis of Consolidation
The consolidated financial statements include the financial statements of the Parent Company and
its wholly owned subsidiary, SCCP, and are prepared for the same reporting period as the Parent
Company, using consistent accounting policies.
All significant intra-group balances, transactions, income and expenses resulting from intra-group
transactions are eliminated in full in the consolidation.
Subsidiary is fully consolidated from the date of acquisition, being the date on which the Group
obtains control, and continues to be consolidated until the date that such control ceases. Control is
achieved where the Group has the power to govern the financial and operating policies of an entity
so as to obtain benefit from its activities.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year, except for
the adoption of the following new and amended PFRS and Philippine Interpretations from IFRIC
starting January 1, 2010:
Amendments to Standards
 PFRS 2, Share-based Payment (Amendment) - Group Cash-settled Share-based Payment
Transactions, effective for annual periods beginning on or after January 1, 2010
65 Charging to New Highs
 -3-
 Improvements to PFRS (2008 and 2009), effective January 1, 2010
The above amendments to standards did not have any significant impact on the financial statements
of the Group.
Future Changes in Accounting Policies
Standards issued but are not yet effective up to the date of the Group’s financial statements are
listed below. This listing is of standards and interpretations issued which the Group reasonably
expects to be applicable at a future date. The Group intends to adopt these standards when they
become effective.
New Standard and Interpretations
 PFRS 9, Financial Instruments: Classification and Measurement, will become effective for
annual periods beginning on or after January 1, 2013. PFRS 9, as issued in 2010, reflects the
first phase of the work on the replacement of PAS 39 and applies to classification and
measurement of financial assets and financial liabilities as defined in PAS 39. In subsequent
phases, hedge accounting and derecognition will be addressed. The completion of this project
is expected in early 2011. The adoption of the first phase of PFRS 9 will have an effect on the
classification and measurement of the Group’s financial assets. The Group will quantify the
effect in conjunction with the other phases, when issued, to present a comprehensive picture.
 Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate, will
become effective for annual periods beginning on or after January 1, 2012. This interpretation
covers accounting for revenue and associated expenses by entities that undertake the
construction of real estate directly or through subcontractors. The interpretation requires that
revenue on construction of real estate be recognized only upon completion, except when such
contract qualifies as construction contract to be accounted for under PAS 11, Construction
Contracts, or involves rendering of services in which case revenue is recognized based on stage
of completion. Contracts involving provision of services with the construction materials and
where the risks and reward of ownership are transferred to the buyer on a continuous basis will
also be accounted for based on stage of completion.
 Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments,
will become effective for annual periods beginning on or after July 1, 2010. This interpretation
clarifies that equity instruments issued to a creditor to extinguish a financial liability qualify as
consideration paid. The equity instruments issued are measured at their fair value. In case that
this cannot be reliably measured, the instruments are measured at the fair value of the liability
extinguished. Any gain or loss is recognized immediately in profit or loss.
Amendments to Standards and Interpretation
 PFRS 7, Financial Instruments: Disclosures (Amendments) - Transfers of Financial Assets, will
become effective for annual periods beginning on or after July 1, 2011. The amendments will
allow users of financial statements to improve their understanding of transfer transactions of
financial assets (for example, securitizations), including understanding the possible effects of any
risks that may remain with the entity that transferred the assets. The amendments also require
additional disclosures if a disproportionate amount of transfer transactions are undertaken
around the end of a reporting period.
 PAS 12, Income Taxes (Amendment) - Deferred Tax: Recovery of Underlying Assets, will
become effective for annual periods beginning on or after January 1, 2012. It provides a
practical solution to the problem of assessing whether recovery of an asset will be through use
The Philippine Stock Exchange, Inc. 2010 Annual Report 66
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or sale. It introduces a presumption that recovery of the carrying amount of an asset will
normally be through sale.
 PAS 24, Related Party Disclosures (Amended), will become effective for annual periods
beginning on or after January 1, 2011. It clarifies the definition of a related party to simplify the
identification of such relationships and to eliminate inconsistencies in its application. The
revised standard introduces a partial exemption of disclosure requirements for government-
related entities.
 PAS 32, Financial Instruments: Presentation (Amendment) - Classification of Rights Issues, will
become effective for annual periods beginning on or after February 1, 2010. It amends the
definition of a financial liability to classify rights issues (and certain options or warrants) as
equity instruments in cases where such rights are given pro rata to all of the existing owners of
the same class of an entity’s non-derivative equity instruments, or to acquire a fixed number of
the entity’s own equity instruments for a fixed amount in any currency.
Except for PFRS 9, the Group does not expect the above new standard, interpretations and
amendments to have an impact on the consolidated financial statements as they are either not
applicable to its current operations or the Group has not entered into such transactions.
Improvements to PFRS 2010. Improvements to PFRS is an omnibus of amendments to PFRS.
The Group did not adopt the following improvements as they are not yet effective as of
December 31, 2010. The amendments listed below, are not expected to have material impact on
the consolidated financial statements:
 PFRS 7, Financial Instruments: Disclosures, becomes effective for annual periods beginning on
or after January 1, 2011. The amendment emphasizes the interaction between quantitative and
qualitative disclosures about the nature and extent of risks associated with financial instruments.
This standard is to be applied retrospectively.
 PAS 1, Presentation of Financial Statements, becomes effective for annual periods beginning on
or after January 1, 2011. The amendment clarifies that an entity will present an analysis of
other comprehensive income for each component of equity, either in the statement of changes
in equity or in the notes to the financial statements. This standard is to be applied
retrospectively.
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash with original maturities of three
months or less from dates of placement and are subject to an insignificant risk of change in value.
Financial Assets and Financial Liabilities
Date of Recognition. The Group recognizes a financial asset or a financial liability on its
consolidated balance sheet when and only when, the entity becomes a party to the contractual
provisions of the instrument. In the case of a regular way purchases and sales of financial assets,
recognition and derecognition, as applicable, is done using settlement date accounting. Regular way
purchases and sales are purchases or sales of financial assets that require delivery of assets within
period generally established by regulation or convention in the market place.
67 Charging to New Highs
 -5-
Initial Recognition. Financial assets and liabilities are recognized initially at fair value, which is the
fair value of the consideration given (in case of an asset) or received (in case of a liability). The
initial measurement of financial instruments, except those designated at fair value through profit or
loss (FVPL), includes transaction cost.
Financial assets are classified into the following categories: financial asset at FVPL, held-to-maturity
(HTM) investments, loans and receivables, and AFS investments. Financial liabilities are classified
either as financial liabilities at FVPL or other financial liabilities at amortized cost. The
classification depends on the purpose for which the investments were acquired and whether they
are quoted in an active market. The Group determines the classification at initial recognition and,
where allowed and appropriate, re-evaluates this designation at every reporting date.
The Group has no financial assets and liabilities at FVPL and HTM investments as of
December 31, 2010 and 2009.
Determination of Fair Value. The fair value for a financial instrument traded in an active market at
the reporting date is based on their quoted market price or dealer price quotation (bid price for
long positions and ask price for short positions), without any deduction for transaction costs. When
current bid and ask prices are not available, the price of the most recent transaction provides
evidence of the current fair value as long as there has not been a significant change in economic
circumstances since the time of the transaction.
For all other financial instruments not listed in an active market, the fair value is determined by
using appropriate valuation methodologies. Valuation methodologies include net present value
techniques, comparison to similar instruments for which market observable prices exist, options
pricing models, and other relevant valuation models.
Day 1 Difference. Where the transaction price in a non-active market is different to the fair value
from other observable current market transactions in the same instrument or based on a valuation
technique whose variables include only data from an observable market, the Group recognizes the
difference between the transaction price and fair value (a Day 1 difference) in the statement of
comprehensive income unless it qualifies for recognition as some other type of asset or liability. In
cases where unobservable data is used, the difference between the transaction price and model
value is recognized in the consolidated statements of comprehensive income only when the inputs
become observable or when the instrument is derecognized. For each transaction, the Group
determines the appropriate method of recognizing the Day 1 difference amount.
Loans and Receivables. Loans and receivables are non-derivative financial assets with fixed or
determinable payments and are not quoted in an active market. They are not entered into with the
intention of immediate or short-term resale and are not classified or designated as AFS investments
or financial assets at FVPL. Such assets are carried at amortized cost in the consolidated balance
sheet. Gains and losses are recognized in the profit or loss when the loans and receivables are
derecognize and impaired, as well as through the amortization process. Amortization is determined
using the effective interest method and is included under interest income in the profit or loss.
Loans and receivables are classified as current assets if maturity is within 12 months from balance
sheet date. Otherwise, these are classified as noncurrent assets.
Included under this category are the Group’s cash and cash equivalents and receivables.
AFS Investments. AFS investments include equity and debt securities. Equity investments
classified as AFS are those, which are neither classified as held for trading nor designated at FVPL.
The Philippine Stock Exchange, Inc. 2010 Annual Report 68
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Debt securities in this category are those which are intended to be held for an indefinite period of
time and which may be sold in response to liquidity requirements or changes in market conditions.
After initial measurement, AFS investments are subsequently measured at fair value with unrealized
gains or losses recognized as other comprehensive income in the AFS reserve until the financial
asset is derecognized, at which time the cumulative gain or loss is recognized as an operating
income, or determined to be impaired, at which time the cumulative loss is recognized in the
statements of comprehensive income as finance costs and removed from the AFS reserve.
Included under this category are the Group’s investments in government securities, corporate
bonds, and investment in golf club shares.
Other Financial Liabilities. This category pertains to financial liabilities that are not held for
trading or not designated as at FVPL upon the inception of the liability. These include liabilities
arising from operations or borrowings.
Financial liabilities are recognized initially at fair value and are subsequently carried at amortized
cost, taking into account the impact of applying the effective interest method of amortization
(or accretion) for any related premium, discount and any directly attributable transaction costs.
Gains and losses are recognized in profit or loss when the loans and receivables are derecognized or
impaired, as well as through the amortization process.
Included under this category are the Group’s accounts payable (excluding taxes payables) and other
current liabilities.
Classification of Financial Instruments Between Liability and Equity
A financial instrument is classified as liability if it provides for a contractual obligation to:
 deliver cash or another financial asset to another entity; or
 exchange financial assets or financial liabilities with another entity under conditions that are
potentially unfavorable to the Group; or
 satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of own equity shares.
If the Group does not have an unconditional right to avoid delivering cash or another financial asset
to settle its contractual obligation, the obligation meets the definition of a financial liability.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the asset and settle the
liability simultaneously. This is not generally the case with master netting agreements, where the
related assets and liabilities are presented gross in the consolidated balance sheet.
Impairment of Financial Assets
The Group assesses at each reporting date whether a financial asset or a group of financial assets is
impaired. A financial asset or a group of financial asset is deemed to be impaired, if and only if,
there is objective evidence of impairment as a result of one or more events that has occurred after
the initial recognition of the asset (an incurred loss event) and that loss event has an impact on the
estimated future cash flows of the financial asset or a group of financial assets that can be reliably
69 Charging to New Highs
 -7- -8-

estimated. Evidence of impairment may include indications that the borrower or a group of
borrowers is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial reorganization
and where observable data indicate that there is measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Financial Assets Carried at Amortized Cost. The Group first assesses whether objective evidence of
impairment exists individually for financial assets that are individually significant, or collectively for
financial assets that are not individually significant. If the Group determines that no objective
evidence of impairment exists for an individually assessed financial asset, whether significant or not,
it includes the asset in a group of financial assets with similar credit risk characteristics and
collectively assesses them for impairment. Assets that are individually assessed for impairment and
for which an impairment loss is or continues to be recognized are not included in the collective
assessment of impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the carrying amount and the present value of estimated future
cash flows (excluding future credit losses that have not been incurred). The present value of the
estimated discounted at the financial asset’s original effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account. The amount
of the loss is charged to the consolidated statements of comprehensive income. Interest income
continues to be accrued on the reduced carrying amount based on the original effective interest rate
of the asset. Loans and receivables together with the associated allowance are written off when there
is no realistic prospect of future recovery and all collateral, if any, has been realized or has been
transferred to the Group. If, in a subsequent period, the amount of the impairment loss increases
or decreases because of an event occurring after the impairment was recognized, the previously
recognized impairment loss increases or decreases by adjusting the allowance account. If a future
write-off is later recovered, the recovery is recognized in the consolidated statement of
comprehensive income.
AFS Investments. The Group assesses at each reporting period whether there is objective evidence
that an investment or a group of investments is impaired. In the case of equity investments
classified as AFS investments, an objective evidence of impairment would include a significant or
prolonged decline in the fair value of the investments below its cost. Significant is evaluated against
the original cost of the investment and prolonged against the period in which the fair value has been
below its original cost. Where there is evidence of impairment, the cumulative loss, is measured as
the difference between the acquisition cost and the current value, less any impairment loss on that
financial asset previously recognized in the profit or loss, is removed from other comprehensive
income and recognized in the profit or loss. Impairment losses on equity are not reversed through
the profit or loss; increases in fair value after impairment are recognized directly in the other
comprehensive income.
In the case of debt instruments classified as AFS investments, impairment is assessed based on the
same criteria as financial assets carried at amortized cost. Future interest income is based on the
reduced carrying amount of the asset and is accrued based on the rate of interest used to discount
future cash flows for the purpose of measuring impairment loss. Such accrual is recorded as part of
“Interest income” account in the consolidated statement of comprehensive income. If, in
subsequent year, the fair value of a debt instrument increased and the increase can be objectively
related to an event occurring after the impairment loss was recognized in consolidated statement of
comprehensive income, the impairment loss is reversed through statement of comprehensive
income.
Derecognition of Financial Assets and Liabilities
Financial Asset. A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is derecognized when:
 the rights to receive cash flows from the asset have expired;
 the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a ‘pass-through’ arrangement;
or
 the Group has transferred its rights to receive cash flows from the asset and either: (a) has
transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its right to receive cash flows from an asset or has entered into a
“pass-through” arrangement and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the
Group’s continuing involvement in the asset.
Financial Liability. A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or has expired.
When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such exchange or
modification is treated as a derecognition of the original liability and the recognition of a new
liability and the difference in the respective carrying amounts is recognized in the consolidated
statement of comprehensive income.
Property and Equipment
Property and equipment, except Land is stated at cost less accumulated depreciation and any
impairment in value. The cost of the Land which is represented by shares in a Condominium
Corporation donated to the Exchange is valued at the fair value of the land at the date of donation.
Land is subsequently carried at cost less any impairment in value.
The initial cost of property and equipment comprises of its purchase price and any directly
attributable costs in bringing the asset to its working condition and location for its intended use.
Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance, are charged against current operations.
Depreciation is calculated on the straight-line method over the following estimated useful life of the
depreciable assets:
Buildings 25 years
Building improvements 10 years
Transportation equipment 5 years
Trading system equipment 3 to 7 years
Computer hardware and peripherals 3 to 5 years
Office furniture, fixtures and communication equipment 2 to 5 years
Utilities and others 1 to 2 years

The Philippine Stock Exchange, Inc. 2010 Annual Report 70 71 Charging to New Highs
 -9-
The residual value, useful lives and depreciation are reviewed and adjusted, if appropriate, at each
financial year-end.
Fully depreciated assets are retained in the accounts until they are no longer in use and no further
depreciation is credited or charged to current operations.
An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
of the asset, calculated as the difference between the net disposal proceeds and the carrying amount
of the asset, is included in the profit or loss in the year the asset is derecognized.
Computer Software
Costs associated with developing or maintaining computer software programs are recognized as
expense when incurred. Costs that are directly associated with identifiable and unique software
controlled by the Group and will generate economic benefits exceeding costs beyond one year, are
recognized as intangible assets.
Computer software development costs recognized as assets are amortized using the straight-line
method over their estimated useful life, but not exceeding a period of seven (7) years.
Investment in an Associate
The Group’s investment in an associate is accounted for under the equity method of accounting.
An associate is an entity in which the Group has significant influence and which is neither a
subsidiary nor a joint venture.
Under the equity method, an investment in an associate is carried in the consolidated balance sheets
at cost plus post-acquisition changes in the Group’s share in net assets of the associate. Goodwill
relating to an associate is included in the carrying amount of the investment and is neither amortized
nor individually tested for impairment. The profit or loss reflects the share in the results of
operations of the associate. Where there has been a change recognized directly in the equity of the
associate, the Group recognizes its share in any changes and discloses this, when applicable, in the
consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions
between the Group and the associate are eliminated to the extent of the interest in the associate.
The financial statements of the associate are prepared for the same reporting period as the Group.
After application of the equity method, the Group determines whether it is necessary to recognize
an additional impairment loss on the Group’s investment in the associate. The Group determines
at each balance sheet date whether there is any objective evidence that the investment in the
associate is impaired. If this is the case, the Group calculates the amount of impairment as the
difference between the recoverable amount of the associate and its carrying value and recognizes the
amount in the consolidated statement of comprehensive income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
retaining investment at its fair value. Any difference between the carrying amounts of the associate
upon loss of significant influence and the fair value of the retaining investment and proceeds from
disposal is recognized in profit or loss.
Impairment of Nonfinancial Assets
The carrying values of property and equipment, computer software, and investments in an associate
are reviewed for impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable. If any such indication exists, and if the carrying value exceeds the
estimated recoverable amount, the assets are written down to their recoverable amounts. The
The Philippine Stock Exchange, Inc. 2010 Annual Report 72
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recoverable amount of the asset is the greater of fair value less costs to sell or value in use. The fair
value less costs to sell is the amount obtainable from the sale of an asset in an arm’s-length
transaction between knowledgeable, willing parties, less costs of disposal. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the
asset. Impairment losses are recognized in the profit or loss in those expense categories consistent
with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment loss may no longer exist or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously recognized impairment loss is reversed only if
there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increased amount cannot exceed the carrying amount that would
have been determined, net of depreciation and amortization, had no impairment loss been
recognized for the asset in prior years. Such reversal is recognized in profit or loss. After such a
reversal, the depreciation or amortization charge is adjusted in future periods to allocate the asset’s
revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
Deferred Fees
Deferred fees represent listing fees, listing maintenance fees and data feed fees which are billed and
collected but not yet earned as of balance sheet date. This account is reversed and recognized as
revenue when services are rendered.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, taking into
account contractually defined terms of payment and excluding taxes or duty. The Group assesses
its revenue arrangements against specific criteria in order to determine if it is acting as principal or
agent. The Group has concluded that it is acting as a principal in all of its revenue arrangements.
The following specific recognition criteria must also be met before revenue is recognized:
Listing Fees. Listing fees for initial public offering are recognized upon listing of an applicant. The
annual listing fees are recognized on an accrual basis based on the listing agreement. The additional
listing fees are recognized upon the listing of new securities issued by an applicant.
Listing Maintenance, Processing, Trading-related and Service Fees. Revenue is recognized when
the related services are rendered.
Interest Income. Revenue is recognized as the interest accrues, taking into account the effective
yield of the asset.
Dividend Income. Dividend income is recognized when the Group’s right to receive the dividend
payment is established.
Other Revenues. Revenue is recognized when the services are rendered or when penalties or fines
are charged. This account mainly consists of trading and listing related fines and penalties for late
payment, late submission of requirements, noncompliance and nondisclosure of listed companies.
73 Charging to New Highs
 - 11 -
Retirement Cost
The Parent Company has a funded noncontributory defined benefit retirement plan, while SCCP
has an unfunded noncontributory defined benefit retirement plan, administered by trustees,
covering their permanent employees. The Group’s retirement cost is actuarially determined
separately using the projected unit credit method.
The defined benefit liability is the aggregate of the present value of the benefits obligation and
actuarial gains or losses not recognized, reduced by past-service cost not yet recognized and the fair
value of plan assets out of which the obligations are to be settled directly. If such aggregate is
negative, the asset is measured at the lower of such aggregate or the aggregate of cumulative
unrecognized net actuarial losses and past-service cost and the present value of any economic
benefits available in the form of refunds from the plan or reductions in future contributions to the
plan. This would not result in a gain being recognized as a result of an actuarial loss or past service
cost in the current year or in a loss being recognized as a result of an actuarial gain in the current
year. The Group recognizes immediately the net actuarial losses or gains of the current year and
past service cost or reduction in the past service cost of the current year to the extent that they
exceed any reduction or increase in the present value of the economic benefits; and if there is no
change or an increase or decrease in the present value of the economic benefits, the entire net
actuarial losses or gains of the current period and past service cost or reduction of past service cost
of the current period is recognized immediately.
The defined benefit obligation for each fund is calculated annually by an independent actuary. The
present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows using interest rates of government bonds that are denominated in the currency in
which the benefits will be paid, and that have terms to maturity approximating the terms of the
related retirement liabilities. Actuarial gains and losses are recognized as income or expense when
the net cumulative unrecognized actuarial gains and losses of the plan at the end of the previous
reporting year exceed 10% of the higher of the present value of the defined benefit obligation and
the fair value of plan assets at that date. The excess actuarial gains and losses are recognized over
the average remaining working life of employees participating in that plan in the statements of
comprehensive income.
Experience adjustments and unrecognized actuarial gains or losses are amortized over the
remaining working lives of employees. Retirement cost includes current service cost, amortization
of past-service costs, experience adjustments and actuarial gains and losses.
Past-service costs are recognized immediately in the consolidated statement of comprehensive
income, unless the changes to the pension plan are conditional on the employees remaining in
service for a specified period of time (the vesting period). In this case, the past-service costs are
amortized on a straight-line basis over the vesting period.
Income Taxes
Current Tax. Current tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted at balance sheet date.
Deferred Tax. Deferred tax is provided, using the balance sheet liability method, on all temporary
differences at balance sheet date between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes.
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Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are
recognized for all deductible temporary differences, carryforward of unused tax credits from excess
minimum corporate income tax (MCIT) over regular corporate income tax (RCIT) and unused net
operating loss carryover (NOLCO), to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and carryforward of unused tax credits
and unused NOLCO can be utilized.
Deferred tax liabilities are not provided on nontaxable temporary differences associated with
investment in subsidiary.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are reassessed at
each balance sheet date and are recognized to the extent that it has become probable that future
taxable profit will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rate applicable to the year when the asset
is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at balance sheet date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and deferred taxes related to the same taxable entity
and the same taxation authority.
Share-based Payment Transaction
All regular employees in good standing are granted options to purchase shares, subject to
restrictions, terms and conditions provided in the Employee Stock Purchase Plan (ESPP).
The cost of equity-settled transactions is measured by reference to the fair value at the date on
which they are granted. The fair value is determined using a quoted market price at the time of
payment.
The cost of equity-settled transactions is recognized with a corresponding increase in the equity,
over the period in which the performance and/or service conditions are fulfilled, ending on the date
on which the relevant employees become fully entitled to the award (vesting date). The cumulative
expense recognized for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Group’s best estimate of the
number of equity instruments that will ultimately vest. The amount reflected in the profit or loss
represents the movement in cumulative expense recognized as of the beginning and end of the
period. No expense is recognized for awards that do not ultimately vest.
Foreign Currency-Denominated Transactions
Transactions in foreign currencies are recorded using the exchange rate at the date of the
transactions. Foreign exchange gains or losses arising from foreign currency-denominated
transactions and revaluation adjustments of foreign currency-denominated assets and liabilities are
credited to or charged against current operations. Monetary assets and liabilities denominated in
foreign currencies are translated using the closing rate prevailing at consolidated balance sheet date.
Capital Stock
Capital stock is measured at par value for all shares issued. Incremental costs incurred directly
attributable to the issuance of new shares are shown in stockholders’ equity as a deduction from
75 Charging to New Highs
 - 13 -
proceeds, net of tax. Proceeds and/or fair value of considerations received in excess of par value, if
any, are recognized as additional paid-in capital.
Treasury Shares
The Parent Company’s own equity instruments which are acquired (treasury shares) are deducted
from equity and accounted for at cost. No gain or loss is recognized in the consolidated statement
of comprehensive income on the purchase, sale, issue or cancellation of the Parent Company’s own
equity instruments.
Dividends on Common Shares
Dividends on common shares are recognized as a liability and deducted from equity when
approved by the shareholders of the Parent Company. Dividends for the year that are approved
after the balance sheet date are dealt with as an event after the reporting period.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) where, as
a result of a past event, it is probable that an outflow of assets embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value
of money and, where appropriate, the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as interest expense. Where the
Group expects a provision to be reimbursed, the reimbursement is recognized as a separate asset
but only when the receipt of the reimbursement is virtually certain.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. They are
disclosed in the notes to consolidated financial statements unless the possibility of an outflow of
assets embodying economic benefits is remote. Contingent assets are not recognized in the
consolidated financial statements but are disclosed in the notes to consolidated financial statements
when an inflow of economic benefits is probable.
Events after the Reporting Period
Post-year-end events that provide additional information about the Group’s position at reporting
period (adjusting events) are reflected in the consolidated financial statements. Post-year-end events
that are not adjusting events, if any, are disclosed in the notes to the consolidated financial
statements.
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the financial statements in accordance with PFRS requires the Group to make
judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income
and expenses and disclosure of contingent assets and contingent liabilities, at the reporting date.
Future events may occur which will cause the assumptions used in arriving at the estimates to
change. The effects of any change in estimates are reflected in the consolidated financial statements
as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be determinable under the
circumstances.
The Philippine Stock Exchange, Inc. 2010 Annual Report 76
- 14 -
Judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments, apart from those involving estimates and assumptions, which have the most significant
effect on the amounts recognized in the consolidated financial statements.
Fair Values of Financial Assets and Liabilities. The Group carries certain financial assets at fair
value. Fair value determinations for financial assets and liabilities are based generally on listed or
quoted market prices. If prices are not readily determinable or if liquidating the positions is
reasonably expected to affect market prices, fair value is based on management’s estimate of
amounts that could be realized under current market conditions, assuming an orderly liquidation
over a reasonable period of time.
Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at
balance sheet date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
Impairment of AFS Investments. The Group treats AFS equity investments as impaired when
there has been a significant or prolonged decline in the fair value below its cost or where other
objective evidence of impairment exists. The determination of what is ‘significant’ or ‘prolonged’
requires judgment. The Group treats ‘significant’ generally as 20% or more and ‘prolonged’ as
greater than the period of six months. In addition, the Group evaluates other factors, including
normal volatility in share price for quoted equities and the future cash flows and the discount factors
for unquoted equities.
As of December 31, 2010 and 2009, allowance for impairment losses on AFS equity investments
amounted to P = 2.9 million. The carrying value of AFS equity investments amounted to
P
= 964.6 million and P= 926.4 million as of December 31, 2010 and 2009, respectively (see Note 7).
Impairment of Receivables. The Group reviews its receivables portfolio to assess impairment
annually. In determining whether an impairment loss should be recorded in the consolidated
statement of comprehensive income, the Group makes judgment as to whether there is any
observable data indicating that there is a measurable decrease in the estimated future cash flows
from the receivables. This evidence may include observable data indicating that there has been an
adverse change in the payment status of borrowers.
As of December 31, 2010 and 2009, allowance for impairment losses on receivables amounted to
P
= 4.8 million and P
= 6.5 million, respectively. As of December 31, 2010 and 2009, the carrying
values of receivables amounted to P = 87.9 million and P
= 58.0 million, respectively (see Note 8).
Impairment of Investment in an Associate. The Group assesses impairment on its investments in
an associate whenever events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. The factors that the Group considers important which could trigger
an impairment review on its investments in subsidiary and associate include the following:
 Deteriorating or poor financial condition;
 Recurring net losses; and
 Significant changes with an adverse effect on the technological, market, economic, or legal
environment in which the associate operates have taken place during the period, or will take
place in the near future.
In 2008, the Group provided an impairment loss amounting to P = 5.1 million. In 2009, due to
improvement in the financial results and position of the associate, the Group reversed impairment
77 Charging to New Highs
 - 15 -
loss amounting to P
= 5.7 million. The carrying value of the investment in an associate amounted to
P
= 142.7 million and P
= 116.1 million as of December 31, 2010 and 2009, respectively (see Note 10).
Impairment of Other Nonfinancial Assets. The Group assesses impairment on its other
nonfinancial assets (e.g., property and equipment, computer software) whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. Among
others, the factors that the Group considers important which could trigger an impairment review on
its nonfinancial assets include the following:
 Significant underperformance relative to expected historical or projected future operating
results;
 Significant changes in the manner of use of the acquired assets or the strategy for overall
business; and
 Significant negative industry or economic trends.
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is determined based on the asset’s value in use computation
which considers the present value of estimated future cash flows expected to be generated from the
continued use of the asset. The Group is required to make estimates and assumptions that can
materially affect the carrying amount of the asset being assessed.
As of December 31, 2010 and 2009, the aggregate carrying value of property and equipment and
computer software amounted to P
=575.6 million and P=519.5 million, respectively (see Notes 9
and 11).
Estimation of Useful Lives of Property and Equipment and Computer Software. The Group
estimated the useful lives of its property and equipment and computer software based on the period
over which the assets are expected to be available for use. The Group reviews annually the
estimated useful lives based on factors that include asset utilization, internal technical evaluation,
technological changes, and anticipated use of the assets. A reduction in the estimated useful lives of
property and equipment and computer software would increase the recorded depreciation and
amortization expense and decrease the related assets.
Recognition of Deferred Tax Assets. Deferred tax assets are recognized for all deductible
temporary difference to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences can be utilized. Significant management judgment is
required to determine the amount of deferred income tax assets that can be recognized, based upon
the likely timing and level of future taxable profits together with future tax planning strategies.
As of December 31, 2010 and 2009, the Group recognized deferred tax asset amounting to
P
= 19.6 million and P
=16.2 million, respectively. Unrecognized deferred tax asset amounted to
P
= 9.0 million and P
= 8.7 million as of December 31, 2010 and 2009. (see Note 19).
Present Value of Defined Benefit Obligation. The present value of the pension obligations
depends on a number of factors that are determined on an actuarial basis using a number of
assumptions. The assumptions used in determining the net cost for pensions include, among
others, discount rate, expected rate of return on plan assets and rate of salary increase. Actual
results that differ from the Group’s assumptions are accumulated and amortized over future periods
and therefore, generally affect the recognized expense and recorded obligation in such future
periods.
The Philippine Stock Exchange, Inc. 2010 Annual Report 78
- 16 -
The assumption of the expected return on plan assets is determined on a uniform basis, taking into
consideration the long-term historical returns, asset allocation and future estimates of long-term
investment returns.
The Group determines the appropriate discount rate at the end of each year. It is the interest rate
that should be used to determine the present value of estimated future cash outflows expected to be
required to settle the pension obligations.
Other key assumptions for pension obligations are based in part on current market conditions.
While it is believed that the Group’s assumptions are reasonable and appropriate, significant
differences in actual experience or significant changes in assumptions may materially affect the
Group’s pension and other pension obligations.
As of December 31, 2010 and 2009, the present value of the defined benefit obligation amounted
to P
= 69.2 million and P= 45.2 million, respectively, for the Parent Company and P
= 9.2 million and
P
= 7.2 million, respectively, for SCCP (see Note 20).
4. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments consist of cash and cash equivalents, AFS investments,
receivables and accounts payable, accrued expenses and other current liabilities (excluding taxes
payable). It is the Group’s policy not to engage in the trading of financial instruments.
The main risks arising from the Group’s financial instruments are liquidity risk, credit risk, interest
rate risk and foreign currency risk. To further strengthen the management of risk, the Group
formally created the Internal Audit and Risk Management positions under the Corporate
Governance Office to specifically manage the enterprise-wide risks.
Liquidity Risk
Liquidity risk or funding risk is the risk that an entity will encounter difficulty in raising funds to
meet commitments associated with financial instruments. Liquidity risk may result from the
inability to sell financial assets quickly at their fair values.
The Group seeks to manage its liquidity profile to be able to service its maturing liabilities and to
finance capital requirements. The Group maintains a level of cash and cash equivalents deemed
sufficient to finance operations. As part of its liquidity risk management, the Group regularly
evaluates its projected and actual cash flows.
To meet the requirement for liquidity, adequate cash flow is provided for administrative/operating
expenditures and capital expenses based on projected funding requirements. All excess funds are
invested in an organized investment mix of short-term and long-term investments to achieve
maximum returns.
79 Charging to New Highs
 - 17 - - 18 -

The tables below summarize the maturity profile of the Group’s financial assets held for liquidity Credit Risk
purposes and financial liabilities based on remaining contractual undiscounted payments. Credit risk refers to the potential loss arising from any failure by the Group’s counterparties to fulfill
their contractual obligations, as and when they fall due. The Group’s credit exposure arises mainly
As of December 31, 2010 from receivables from brokers on clearing related services for securities transactions, membership
More than No Maturity fees and other fees, receivable from listed companies on listing maintenance fees and receivable
Within a Year 1–2 Years 2 Years Date Total from market data vendors for data feed charges. To minimize credit risk, the Group monitors the
Financial Assets
Loans and receivables:
financial health of clearing participants and takes note of participants with potential default.
Cash and cash equivalents P
= 389,145,482 P
=– P
=– P
=– P
= 389,145,482
Receivables: The credit risk of the Group’s other financial assets, which comprise cash and cash equivalents and
Receivables from: investments, arises from default of the counterparty.
Brokers 44,940,682 – – – 44,940,682
Listed companies 14,409,194 – – – 14,409,194 The table below shows the maximum exposure to credit risk before considering collateral and other
Data vendors 4,639,676 – – – 4,639,676
Accrued interest receivable 15,248,861 – – – 15,248,861 credit enhancements.
Other receivables 8,694,016 – – – 8,694,016
Other assets - deposits in bank – – 321,879 – 321,879 2010 2009
AFS investments: Loans and receivables:
Government debt securities: Cash and cash equivalents (excluding
Short-term 837,844,003 – – – 837,844,003
Long-term – 20,879,105 53,603,964 – 74,483,069 cash on hand) P
= 389,044,969 P
= 393,616,042
Corporate bonds – 22,008,888 30,000,000 – 52,008,888 Receivables
Equity securities – – – 291,000 291,000 Receivables from:
P
= 1,314,921,914 P
= 42,887,993 P
= 83,925,843 P
= 291,000 P
= 1,442,026,750 Brokers 44,940,682 26,240,105
Financial Liabilities Listed companies 14,409,194 4,144,741
Other financial liabilities: Data vendors 4,639,676 2,857,744
Due to SEC P
= 69,408,451 P
=– P
=– P
=– P
= 69,408,451
Trade payables 28,888,681 – – – 28,888,681
Accrued interest receivable 15,248,861 19,132,839
Accrued expenses 24,593,724 – – – 24,593,724 Other receivables 8,694,016 5,575,330
Other payables 4,081,865 – – – 4,081,865 Other assets - deposits in bank 321,879 15,098,865
= 126,972,721
P P
=– P
=– P
=– P
= 126,972,721
AFS investments:
As of December 31, 2009 Government debt securities:
More than No Maturity Short-term 837,844,003 315,897,605
Within a Year 1–2 Years 2 Years Date Total Long-term 74,483,069 591,264,011
Financial Assets Corporate bonds 52,008,888 19,008,888
Loans and receivables: Equity securities 291,000 200,000
Cash and cash equivalents P
= 393,730,584 P
=– P
=– P
=– P
= 393,730,584
Receivables:
P
= 1,441,926,237 P
= 1,393,036,170
Receivables from:
Brokers 26,240,105 – – – 26,240,105 The aging analysis of receivables that are past due but not impaired follows:
Listed companies 4,144,741 – – – 4,144,741
Data vendors 2,857,744 – – – 2,857,744 2010
Accrued interest receivable 19,132,839 – – – 19,132,839 Past Due but not Impaired
Other receivables 5,575,330 – – – 5,575,330 Over
Other assets - deposits in bank – – 15,098,865 – 15,098,865 Neither Past 180 Days but
AFS investments: Due nor 120 to 180 Less than
Government debt securities: Impaired 30 to 60 Days 60 to 120 Days Days 360 Days Total
Short-term 315,897,605 – – – 315,897,605 Receivables from:
Brokers P
= 44,576,242 P
= 349,440 P
=– P
=– P
= 15,000 P
= 44,940,682
Long-term – 480,261,413 111,002,598 – 591,264,011 Listed companies 206,960 686,500 256,000 6,564,000 6,695,734 14,409,194
Corporate bonds – – 19,008,888 – 19,008,888 Data vendors 3,020,326 – 1,619,350 – – 4,639,676
Equity securities – – – 200,000 200,000 Accrued interest receivable 15,248,861 – – – – 15,248,861
P
= 767,578,948 P
= 480,261,413 P
= 145,110,351 P
= 200,000 P
= 1,393,150,712 Other receivables 5,897,432 1,078,834 – 140,000 1,577,750 8,694,016
Financial Liabilities P
= 68,949,821 P
= 2,114,774 P
= 1,875,350 P
= 6,704,000 P
= 8,288,484 P
= 87,932,429
Other financial liabilities:
Due to SEC P
= 60,354,190 P
=– P
=– P
=– P
= 60,354,190
Trade payables 14,409,471 – – – 14,409,471
Accrued expenses 20,229,274 – – – 20,229,274
Other payables 2,647,906 – – – 2,647,906
P
= 97,640,841 P
=– P
=– P
=– = 97,640,841
P

The Philippine Stock Exchange, Inc. 2010 Annual Report 80 81 Charging to New Highs
 - 19 - - 20 -

AFS investments - the debt securities are based on the nature of the counterparty. High grade debt
2009
Past Due but not Impaired
securities pertain to bonds and notes issued by the Philippine government, except for dollar
Over denominated government bonds which are considered medium grade due to sovereign and foreign
Neither Past 180 Days but currency risk considerations.
Due nor 120 to 180 Less than
Impaired 30 to 60 Days 60 to 120 Days Days 360 Days Total
Receivables from: Receivables - high grade pertains to receivables with no default in payment; medium grade pertains
Brokers P
= 25,119,846 P
= 252,600 P
=– P
= 9,000 P
= 858,659 P
= 26,240,105 to receivables with up to 3 defaults in payment; low grade pertains to receivables with more than 3
Listed companies 129,200 301,007 – 300,333 3,414,201 4,144,741 defaults in payment; and past due but not impaired pertains to receivables where payments are past
Data vendors 23,248 2,598,895 194,643 – 40,958 2,857,744
Accrued interest receivable 19,132,839 – – – – 19,132,839 due but the Group believes that impairment is not appropriate on the basis of status of collection of
Other receivables 4,446,797 1,062,533 39,000 – 27,000 5,575,330 amounts owed to the Group.
P
= 48,851,930 P
= 4,215,035 P
= 233,643 P
= 309,333 P
= 4,340,818 P
= 57,950,759
The Group does not have any significant exposure to any individual customer or counterparty nor
The following tables provide information regarding the credit risk exposure of the Group by does it have any major concentration of credit risk related to any financial instrument.
classifying financial assets according to credit ratings of the counterparties:
In the selection of investment instruments, capital preservation is the primary consideration of the
2010 Group. With this objective, funds are basically invested in government bonds and securities and
Neither Past Due nor Impaired Past Due
Medium but not duly registered with the Registry of Scripless Securities under the name of the Group. For US
High Grade Grade Low Grade Total Impaired Total dollar-denominated placements, the Group maintains a third party custodian bank.
Loans and Receivables
Cash and cash equivalents
(excluding cash on hand) P
= 389,044,969 P
=– P
=– P
= 389,044,969 P
=– P
= 389,044,969 The Treasury Manager is responsible for the identification of investments that provide a relatively
Receivables stable rate of return and submit these identified investments to the Vice President for Finance and
Receivables from:
Brokers 44,576,242 – – 44,576,242 364,440 44,940,682 Investments Division who endorses it to the Treasurer or President for approval. The Exchange is
Listed companies 206,960 – – 206,960 14,202,234 14,409,194 guided by a BOD approved investment policy guidelines. Any exemption to the set policy is
Data vendors 3,020,326 – – 3,020,326 1,619,350 4,639,676
Accrued interest receivable 15,248,861 – – 15,248,861 – 15,248,861 subject to the approval of the BOD. In addition, on a monthly basis, the Treasurer reports the
Other receivables 5,897,432 – – 5,897,432 2,796,584 8,694,016 investment portfolio performance and management’s performance associated with the investment
Other assets - deposits in bank 321,879 – – 321,879 – 321,879
AFS Investments
portfolio to the BOD.
Government debt securities:
Short-term 825,476,739 12,367,264 – 837,844,003 – 837,844,003 Market Risk
Long-term 74,483,069 – – 74,483,069 – 74,483,069
Corporate bonds 52,008,888 – – 52,008,888 – 52,008,888 The Group’s market risk (the risk of loss to future earnings, to fair values or to future cash flows
Equity securities 291,000 – – 291,000 – 291,000 that may result from changes in the price of a financial instrument) originates from its holdings of
Total Financial Assets P
= 1,410,576,365 P
= 12,367,264 P
=– P= 1,422,943,629 P
= 18,982,608 P
= 1,441,926,237
debt securities. The value of a financial instrument may change as a result of changes in interest
2009 rates, foreign currency exchanges rates and other market changes.
Neither Past Due nor Impaired Past Due
Medium but not Fair Value Interest Rate Risk. The Group follows a prudent policy on managing its assets and
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables liabilities so as to ensure that exposure to fluctuations in interest rates are kept within acceptable
Cash and cash equivalents limits. There are no floating rate financial assets and financial liabilities. Term deposits with banks
(excluding cash on hand) P
= 393,616,042 P
=– P
=– P
= 393,616,042 P
=– P
= 393,616,042
Receivables
and debt securities carry fixed rates throughout the period of deposit or placement.
Receivables from:
Brokers 26,234,105 – – 26,234,105 6,000 26,240,105 The table below sets forth the sensitivity to a reasonable possible change in interest rates with all
Listed companies 730,540 – – 730,540 3,414,201 4,144,741
Data vendors 2,816,786 – – 2,816,786 40,958 2,857,744 other variables held constant, of the Group’s equity (through the impact on unrealized gain/loss on
Accrued interest receivable 19,132,839 – – 19,132,839 – 19,132,839 AFS fixed rate debt securities). The impact on the Group’s equity already excludes the impact on
Other receivables 5,575,330 – – 5,575,330 – 5,575,330
Other assets - deposits in bank 15,098,865 – – 15,098,865 – 15,098,865 transactions affecting the statements of comprehensive income.
AFS Investments
Government debt securities:
Short-term 315,897,605 – – 315,897,605 – 315,897,605
2010 2009
Long-term 459,372,544 131,891,467 – 591,264,011 – 591,264,011 Changes in interest rates Effect on equity (in millions)
Corporate bonds 19,008,888 – – 19,008,888 – 19,008,888
Equity securities 200,000 – – 200,000 – 200,000
+70 basis points (P
= 3.8) (P
= 7.6)
Total Financial Assets P
= 1,257,683,544 P
= 131,891,467 P
=– P= 1,389,575,011 P
= 3,461,159 P
= 1,393,036,170 -70 basis points 3.8 7.6

The credit quality of the financial assets was determined as follows: Foreign Currency Risk. Foreign currency risk is the risk that the fair value of future cash flows of a
financial instrument will fluctuate because of changes in foreign currency exchange rates. The
Cash and cash equivalents - based on the nature of the counterparty. High grade pertains to cash Exchange’s exposure to foreign currency risks arise primarily from US dollar transactions, mostly
and cash equivalents deposited or invested in top local banks. from cash and cash equivalents and investments in debt securities.

The Philippine Stock Exchange, Inc. 2010 Annual Report 82 83 Charging to New Highs
 - 21 - - 22 -

The Group’s policy is to maintain foreign currency exposure within acceptable limits. The Group 5. Fair Value Measurement and Fair Value Hierarchy
believes that its profile of foreign currency exposure on its assets and liabilities is within conservative
limits. The table below presents a comparison of the carrying amounts and estimated fair values by class
and by category of the Group’s financial instruments:
The following table summarizes the exposure to foreign currency exchange risk as of
December 31, 2010 and 2009: Carrying Value Fair Value
2010 2009 2010 2009
2010 2009 Financial Assets
In USD In P
= In USD In P
= Loans and receivables:
Financial assets: Cash and cash equivalents = 389,145,482
P P
= 393,730,584 P
= 389,145,482 P
= 393,730,584
Cash and cash equivalents $300,444 P
= 13,171,463 $297,668 P
= 13,752,262 Receivables
Long-term AFS investments 280,703 12,306,026 2,385,804 110,224,147 Receivables from:
Receivables 118,278 5,185,314 72,127 3,332,267 Brokers 44,940,682 26,240,105 44,940,682 26,240,105
$699,425 P
= 30,662,803 $2,755,599 P
= 127,308,676 Listed companies 14,409,194 4,144,741 14,409,194 4,144,741
Data vendors 4,639,676 2,857,744 4,639,676 2,857,744
In translating the foreign currency-denominated monetary assets and liabilities into Philippine Peso Accrued interest receivable 15,248,861 19,132,839 15,248,861 19,132,839
amounts, the exchange rates used were P =43.84 to US$1.00 and P=46.20 to US$1.00, the Philippine Other receivables 8,694,016 5,575,330 8,694,016 5,575,330
Peso to U.S. Dollar exchange rates as at December 31, 2010 and 2009, respectively. Other assets - deposits in bank 321,879 15,098,865 321,879 15,098,865
AFS investments:
Government debt securities
The table below indicates the effect of increase or decrease in US dollar exchange rate on income Short-term 837,844,003 315,897,605 837,844,003 315,897,605
before income tax to which the Group has substantial exposures on its financial assets. The result Long-term 74,483,069 591,264,011 74,483,069 591,264,011
calculates the effect of a reasonably possible change in the spot rates, when all other variables are Corporate bonds 52,008,888 19,008,888 52,008,888 19,008,888
held constant. Negative values in the table reflect a potential reduction in income while a positive Equity securities 291,000 200,000 291,000 200,000
amount reflects a potential increase. P
= 1,442,026,750 P
= 1,393,150,712 P
= 1,442,026,750 P
= 1,393,150,712
Financial Liabilities
2010 2009 Other financial liabilities:
Effect on Effect on Due to SEC = 69,408,451
P P
= 60,354,190 P
= 69,408,451 P
= 60,354,190
USD Income USD Income Trade payables 28,888,681 14,409,471 28,888,681 14,409,471
Strengthens/ Before Tax Strengthens/ Before Tax Accrued expenses 24,593,724 20,229,274 24,593,724 20,229,274
Weakens (in millions) Weakens (in millions) Other payables 4,081,865 2,647,906 4,081,865 2,647,906
+5% P
= 1.5 +5% P
= 6.4 P
= 126,972,721 P
= 97,640,841 P
= 126,972,721 P
= 97,640,841
–5% (1.5) –5% (6.4)
The methods and assumptions used by the Group in estimating the fair value of the financial
A movement in the opposite direction would have increased/decreased income before income tax instruments are:
by the same amount. The increase in P = rate as against US$ rate demonstrates weaker functional
currency while the decrease represents stronger Philippine Peso value. Cash and Cash Equivalents, Receivables and Accounts Payables and Other Current Liabilities
The carrying amounts approximate the fair values due to the short-term maturities of these financial
There is no other impact on the equity other than those already affecting the consolidated statement instruments.
of comprehensive income.
AFS Investments
Fair values are based on quoted market prices.

Fair Value Hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial
instruments:

Level 1: quoted prices in active markets for identical assets or liabilities;

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly; and

Level 3: techniques which use inputs which have significant effect on the recorded fair value that are
not based on observable market data.

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As of December 31, 2010 and 2009, the Group’s AFS investments, which are measured at fair As of December 31, 2010 and 2009, movements of net unrealized gain on AFS investments are as
value, are categorized under level 1 of the fair value hierarchy. During the years ended follows:
December 31, 2010 and 2009, there were no transfer between level 1 and level 2 fair value 2010 2009
measurements. There are no financial instruments classified under level 3. Balance at beginning of year P= 41,735,891 P
= 16,434,488
Net unrealized gains (losses) on
AFS investments for the year (62,463,885) 25,251,916
6. Cash and Cash Equivalents Realized gain transferred to statements of
comprehensive income 36,947,135 49,487
This account consists of: Net change in fair value (25,516,750) 25,301,403
Balance at end of year P= 16,219,141 P
= 41,735,891
2010 2009
Cash on hand and in banks P
= 44,322,715 P
= 77,330,584 The rollforward analysis of the Group’s AFS investments as follows:
Time deposits 344,822,767 316,400,000
= 389,145,482
P P
= 393,730,584 2010 2009
Balance at beginning of year P
= 926,370,504 P
= 1,209,033,938
Cash in banks earn interest at the respective bank deposit rates. Time deposits are made for Acquisitions 504,230,452 185,396,971
varying periods with original maturity of three months or less from dates of placement and earn Maturities (322,187,697) (493,261,808)
interest rates ranging from 3.00% to 4.06%, 4.06% to 4.25% and 5.62% to 6.63% in 2010, 2009 and Disposals (118,269,549) –
2008, respectively. Net change in fair value (25,516,750) 25,301,403
Provision for impairment loss – (100,000)
P
= 964,626,960 P
= 926,370,504
7. Available-for-sale Investments

This account consists of: 8. Receivables

2010 2009 This account consists of:

Short-term government debt securities P
= 837,844,003 P
= 315,897,605
Long-term: 2010 2009
Government debt securities: Receivables from:
Peso 74,483,069 479,866,282 Brokers (Note 22) P
= 45,008,470 P
= 27,101,763
US dollar – 111,397,729 Listed companies 19,125,112 9,786,859
Corporate bonds 52,008,888 19,008,888 Data vendors 4,639,676 2,857,744
126,491,957 610,272,899 Accrued interest receivable 15,248,861 19,132,839
Equity securities 3,169,000 3,078,000 Advances to officers and employees 5,956,957 3,237,058
Less allowance for impairment losses 2,878,000 2,878,000 Other receivables 2,764,059 2,365,272
291,000 200,000 Total 92,743,135 64,481,535
Total long-term available-for-sale investments 126,782,957 610,472,899 Less allowance for impairment losses 4,810,706 6,530,776
P
= 964,626,960 P
= 926,370,504 P
= 87,932,429 P
= 57,950,759

The short-term government debt securities earn annual interest rates ranging from 4.07% to Receivables generally have terms of 30 days, except for the receivables from data vendors which are
11.00%, 4.25% to 11.20% and 5.64% to 6.53% in 2010, 2009 and 2008, respectively. normally collected within 45 days.

Peso-denominated long-term government debt securities earn annual interest rates ranging from As of December 31, 2010 and 2009, receivables from brokers and listed companies with total
5.25% to 11.00%, 4.25% to 11.20% and 5.50% to 12.00% in 2010, 2009 and 2008, respectively, carrying value of P
= 4.8 million and P
= 6.5 million, respectively, which were specifically identified to be
while US dollar-denominated debt securities earn annual interest rates ranging from 8.25% to impaired, were fully provided with allowance.
8.38%, 6.34% to 9.20% and 8.25% to 9.88% in 2010, 2009 and 2008, respectively.

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The movements in the allowance for impairment losses follow: Land. This represents shares in a Condominium Corporation donated to the Exchange. ALI
established a stock condominium corporation with a corporate name of Tower One and PSE
2010 Exchange Plaza Condominium for the purpose of holding title to the parcel of land where the
Listed Exchange Plaza is located and other common areas of the condominium. The PSE’s share in the
Brokers Companies Others Total parcel of land where the condominium is located and the common areas of the condominium is
Balance at beginning of year P
= 861,658 P
= 5,642,118 P
= 27,000 P
= 6,530,776 classified under Land. The donation is divided into two tranches consisting of 120 and 176 shares,
Write-off (784,870) (926,200) – (1,711,070) each valued at P= 63,117,630 and P
= 92,572,524, respectively. Such shares were received by the
Recoveries (9,000) – – (9,000) Exchange on December 29, 1994 for the 120 shares and January 15, 1995 for the 176 shares and
Balance at end of year P
= 67,788 P
= 4,715,918 P
= 27,000 P
= 4,810,706 were valued at fair market value of the land at the time of donation.
2009 Trading system equipment. This represents software and hardware costs. Software costs can no
Listed longer be separately classified as this is an integral part of the related hardware.
Brokers Companies Others Total
Balance at beginning of year P
= 1,652,658 P
= 3,951,478 P
=– P
= 5,604,136
Provision for impairment loss 9,000 1,690,640 27,000 1,726,640
Recoveries (800,000) – – (800,000) 10. Investment in an Associate
Balance at end of year P
= 861,658 P
= 5,642,118 P
= 27,000 P
= 6,530,776
This represents the 20.98% interest in Philippine Dealing System (PDS) Holdings.

2010 2009
9. Property and Equipment
Acquisition cost = 137,050,657
P P
= 137,050,657
The composition of and movements in property and equipment are as follows: Accumulated income (loss) of investee:
Balance at beginning of year (461,415) (4,014,689)
December 31, 2010
Office Share in net income of investee 26,581,660 3,553,274
Trading Computer
Furniture,
Fixtures and Balance at end of year 26,120,245 (461,415)
System Building Hardware and Communication Transportation Utilities and

Cost
Land Buildings Equipment Improvements Peripherals Equipment Equipment Others Total
Impairment losses:
At beginning of
year =155,690,154
P P
=224,895,034 P
=376,534,034 P
=127,179,374 P
=163,667,471 P
=69,667,962 P
=15,964,190 P
=2,455,003 P
=1,136,053,222
Balance at beginning of year (20,489,418) (26,217,321)
Additions – – 70,864,367 24,090,452 12,852,107 4,986,212 5,713,227 43,500 118,549,865 Reversal of impairment loss – 5,727,903
Disposals – – – – (5,753,146) (29,109) (7,265,422) – (13,047,677)
At end of year 155,690,154 224,895,034 447,398,401 151,269,826 170,766,432 74,625,065 14,411,995 2,498,503 1,241,555,410 Balance at end of year (20,489,418) (20,489,418)
Accumulated
depreciation P
= 142,681,484 P
= 116,099,824
At beginning of
year – 134,985,854 174,562,243 119,941,517 132,255,638 57,778,069 5,833,406 1,512,614 626,869,341
Depreciation – 8,995,802 20,991,999 3,438,869 13,692,801 3,473,190 2,382,918 22,768 52,998,347
Disposals – – – – (5,741,634) (29,108) (2,858,333) – (8,629,075) Financial information of PDS Holdings is as follows (amounts in millions):
At end of year – 143,981,656 195,554,242 123,380,386 140,206,805 61,222,151 5,357,991 1,535,382 671,238,613
Net book value P
=155,690,154 P
=80,913,378 P
=251,844,159 P
=27,889,440 P
=30,559,627 P
=13,402,914 P
=9,054,004 P
=963,121 P
=570,316,797
2010 2009
December 31, 2009
Total assets P
= 790.0 P
= 626.9
Office
Furniture,
Total liabilities 111.5 75.2
Trading Computer Fixtures and Revenue 568.6 359.8
System Building Hardware and Communication Transportation Utilities and
Land Buildings Equipment Improvements Peripherals Equipment Equipment Others Total Net income 126.7 15.4
Cost
At beginning of
year P
=155,690,154 P
=224,895,034 P
=303,597,916 P
=123,712,167 P
=149,276,602 P
=70,195,915 P
=16,756,399 P
=2,515,717 P =1,046,639,904
Additions – – 72,936,118 3,467,207 14,390,869 799,933 1,708,279 30,358 93,332,764
Disposals – – – – – (1,327,886) (2,500,488) (91,072) (3,919,446)
At end of year 155,690,154 224,895,034 376,534,034 127,179,374 163,667,471 69,667,962 15,964,190 2,455,003 1,136,053,222
Accumulated
depreciation
At beginning of
year – 125,990,053 169,795,705 118,795,594 118,988,986 54,976,891 4,464,938 1,441,381 594,453,548
Depreciation – 8,995,801 4,766,538 1,145,923 13,266,652 2,807,257 2,949,486 79,914 34,011,571
Disposals – – – – – (6,079) (1,581,018) (8,681) (1,595,778)
At end of year – 134,985,854 174,562,243 119,941,517 132,255,638 57,778,069 5,833,406 1,512,614 626,869,341
Net book value P
=155,690,154 P
=89,909,180 P
=201,971,791 P
=7,237,857 P
=31,411,833 P
=11,889,893 P
=10,130,784 P
=942,389 P
=509,183,881

Buildings. These represent properties donated by Philippine Realty and Holdings Corporation
(PRHC) and Ayala Land, Inc. (ALI) and a condominium unit at the Philippine Stock Exchange
Centre in Pasig City.

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11. Other Assets 12. Accounts Payable and Other Current Liabilities

This account consists of: This account consists of:

2010 2009
Deposit for future subscription (Note 28) = 50,000,000
P P
=– 2010 2009
Deferred tax asset - net (Note 19) 12,988,855 12,922,043 Due to SEC P
= 69,408,451 P
= 60,354,190
Other investments (Note 14) 10,480,181 10,480,181 Trade payables 28,888,681 14,409,471
Computer software 5,262,351 10,269,567 Accrued expenses:
Prepaid tax 958,208 – Compensation and other related staff costs 10,739,580 8,484,044
Security deposits 321,879 15,098,865 Occupancy costs 3,324,981 2,227,766
Others 54,107 54,107 Professional fees 2,628,681 1,603,014
P
= 80,065,581 P
= 48,824,763 Penalties 2,144,943 235,842
Repairs and maintenance 2,085,174 3,461,500
Deposit for Future Subscription. This represents the Group’s capital infusion for the incorporation Telecommunication 1,100,677 2,447,637
of the Exchange’s wholly owned and self regulatory company, Capital Markets Integrity Travel and transportation 638,212 226,896
Corporation (see Note 28). Other accrued expenses 1,931,476 1,542,575
Due to government agencies 19,610,507 10,687,861
Security Deposits. These represent the balance of P = 0.3 million in deposits in bank posted by the Other current liabilities 4,081,865 2,647,906
Parent Company in favor of National Labor Relations Commission (NLRC) in connection with = 146,583,228
P P
= 108,328,702
pending labor cases which are still on appeal. Under the Rules of NLRC, the amount may not be
withdrawn by the Parent Company until final disposition of the cases. As of December 31, 2010, Due to SEC represents the amount payable for license fees to operate an exchange imposed under
certain labor cases under NLRC have been finalized in favor of the Exchange. Thus, the previously Section 35 of the SRC entitled “Additional Fees of Exchanges”, which are billed and collected from
restricted security deposits for the surety bonds amounting to P= 15.1 million were withdrawn and active trading participants.
transferred to cash equivalents accordingly.
Accrued expenses, accounts payable, taxes payable and others are noninterest-bearing and are
Other Investments. These pertain to the donation of FBDC in favor of the Parent Company of normally settled within the next financial year.
10,480,181 shares of Crescent West Development Corporation (CWDC). This is further discussed
in Note 14.
13. Deferred Fees
Computer Software. The movement in this account follows:
2010 2009 This account consists of:
Cost:
Balance at beginning of year P
= 36,469,041 P
= 36,469,041 2010 2009
Additions 13,770,880 – Listing fees P
= 26,333,610 P
= 12,843,186
Write-off (13,692,355) – Fines and penalties 12,397,665 4,422,442
Balance at end of year 36,547,566 36,469,041 Data feed income 6,698,183 5,640,183
Accumulated amortization: Output tax 5,176,621 1,400,962
Balance at beginning of year 26,199,474 20,908,936 Listing maintenance fees 4,180,000 2,992,500
Additions 5,085,741 5,290,538 Other fees 754,928 1,386,446
Balance at end of year 31,285,215 26,199,474 = 55,541,007
P P
= 28,685,719
Net book value P
= 5,262,351 P
= 10,269,567

In October 2010, the Parent’s BOD authorized the termination of the letter of intent with New 14. Donated Capital
York Stock Exchange and to proceed with the Asean Linkage using a different model.
The Parent’s share in the Asean Linkage platform was initially recorded as computer software and As of December 31, 2010 and 2009, this account consists of donations from:
upon termination, this was reported as a loss on asset write-off amounting to P
=13,692,355. As of
December 31, 2010, no depreciation expense was recorded since the asset was never used. ALI (Note 9) P
= 235,690,154
PRHC (Note 9) 139,542,000
FBDC (Note 11) 10,480,181
United States Agency International Development 1,925,250
P
= 387,637,585

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On November 12, 2002, Fort Bonifacio Development Corporation (FBDC) and the Parent Capital Stock
Company executed a Definitive Agreement with the following salient terms and conditions: (i) the
Parent Company agrees to relocate its headquarters, majority of its management offices and its Shares Amount
unified trading operations in equity securities for the National Capital Region (NCR) to the 2010 2009 2010 2009
Bonifacio Global City; (ii) CWDC shall be the corporate vehicle to which FBDC shall contribute Balance at beginning of year 30,655,012 30,597,264 P
= 30,655,012 P
= 30,597,264
the land as additional capital and the shares of which shall eventually be donated to the Parent Issuance of capital stock (Note 25) 32,582 54,654 32,582 54,654
Company; and (iii) the FBDC and the Parent Company agree to develop the land and construct the Subscribed (Note 25) 16,776 3,094 16,776 3,094
Balance at end of year 30,704,370 30,655,012 P
= 30,704,370 P
= 30,655,012
building that will house the Parent Company’s headquarters, majority of its management offices and
its unified trading operations in equity securities for the NCR.
Additional Paid-in Capital
Based on such agreement, all outstanding shares of stocks of CWDC shall be donated by FBDC to
the Parent Company on the following dates: 2010 2009
Balance at beginning of year P
= 1,000,614,613 P
= 982,167,102
Date of Donation %/Number of Shares to be Donated Issuance of capital stock (Note 25) 18,195,951 18,447,511
January 7, 2005 14.32% or 5,247,419 shares Balance at end of year = 1,018,810,654
P P
= 1,000,614,613
January 7, 2006 14.28% or 5,232,762 shares
January 7, 2007 14.28% or 5,232,762 shares Parent Company’s Cash Dividends
January 7, 2008 14.28% or 5,232,762 shares
January 7, 2009 14.28% or 5,232,762 shares Dividend
January 7, 2010 14.28% or 5,232,762 shares Date of Declaration Per Share Total Amount Record Date Payment Date
January 7, 2011 14.28% or 5,232,762 shares March 10, 2010 P
= 10.00 P
= 304,550,060 March 25, 2010 April 21, 2010
February 25, 2009 8.00 243,178,000 March 12, 2009 March 25, 2009
Following the Definitive Agreement, on January 7, 2006 and 2005, FBDC executed a Deed of March 26, 2008 20.00 305,550,100 April 15, 2008 May 15, 2008
Conditional Donation in favor of the Parent Company, which covers the transfer of 5,232,762
shares and 5,247,419 shares of CWDC, respectively, for P
= 10.5 million. Such shares received were The balance of retained earnings includes the accumulated equity in net income of an associate and
classified as Other assets (see Note 11). a subsidiary amounting to P
= 120.12 million and P= 97.55 million as of December 31, 2010 and 2009,
respectively. The amount is not available for dividend distribution until such time that the Parent
In June 2007, the donation of all remaining CWDC shares was deferred pending negotiations Company receives dividends from the respective associate.
among the Parent Company, FBDC and ALI for the joint development, pursuant to a
Memorandum of Understanding dated April 26, 2007, of an iconic office building in Bonifacio Ownership in the Exchange
Global City for the relocation of the Parent Company’s headquarters, majority of its management The SRC provides that no industry or business group may beneficially own or control, directly or
offices and unified trading operations in equities securities for the NCR to the Bonifacio Global indirectly, more than 20% of the voting rights of the Exchange. On August 13, 2007, the SEC
City. imposed on the Exchange a penalty of P = 101,100 plus a daily fine of P
= 100 for every day of delay of
compliance because the total broker ownership in the Exchange exceeds the allowable limit.
As of March 9, 2011, negotiations among the Parent Company, FBDC and ALI are still ongoing. Starting March 2009, the daily fine for every day of delay of compliance is P = 500. The Exchange is
studying the alternative courses of action in order to comply with the SRC.

Capital Management
15. Equity
The Group’s objectives when managing capital are (a) to safeguard the Group’s ability to continue
as a going concern, so that it continues to provide returns for shareholders and benefits for other
This account consists of:
stakeholders; (b) to support the Group’s stability and growth; and (c) to provide capital for the
purpose of strengthening the Group’s risk management capability.
2010 2009
Capital stock - P
=1.00 par value The Group considers all the components of its total equity as capital.
Authorized - 97,800,000 shares
Issued - 30,687,594 shares in 2010 The Group actively and regularly reviews and manages its capital structure to ensure optimal capital
and 30,651,918 shares in 2009 P
= 30,687,594 P
= 30,651,918 structure and shareholder returns, taking into consideration the future capital requirements of the
Subscribed (Note 25) 16,776 3,094 Group and capital efficiency, prevailing and projected profitability, projected operating cash flows,
Additional paid-in capital 1,018,810,564 1,000,614,613 projected capital expenditures and projected strategic investment opportunities. No changes were
Treasury stock (100,007 shares in 2010 and 2009) (68,000,007) (68,000,007) made in the objectives, policies or processes as of December 31, 2010 and 2009.
= 981,514,927
P P
= 963,269,618
The Group adopts a practice of providing shareholders with regular dividends.

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16. Interest Income As of December 31, 2010 and 2009, the Group did not recognize the deferred tax assets on the
following temporary differences since management believes that these deductible temporary
This account consists of interest income from: differences may not be realized in the future:

2010 2009 2008 2010 2009

AFS investments = 67,658,893
P P
= 75,435,240 P
= 100,624,186 Allowance for impairment losses P
= 23,956,651 P
= 23,956,651
Time deposits 10,244,544 10,723,504 8,702,603 Retirement liabilities 6,033,056 4,893,952
Cash in banks 655,138 618,252 888,439 = 29,989,707
P P
= 28,850,603
Car loan 34,470 53,350 465,770
Short-term investments – – 22,142 The components of the net deferred tax assets (included under the “Other assets” account in the
P
= 78,593,045 P
= 86,830,346 P
= 110,703,140 consolidated balance sheet) are as follows:

2010 2009
17. Compensation and Other Related Staff Costs Deferred tax assets:
Unamortized past service costs P
= 7,737,415 P
= 6,177,896
This account consists of: Accrued expenses 6,961,607 5,927,584
Allowance for impairment losses 2,470,850 2,986,870
2010 2009 2008 Unrealized foreign exchange losses 2,440,690 1,065,077
Salaries and wages (Note 22) P
= 110,810,887 P
= 115,530,597 P
= 95,205,235 19,610,562 16,157,427
Retirement and separation cost Deferred tax liabilities -
(Notes 20 and 22) 10,824,369 12,014,599 6,583,073 Retirement asset (6,621,707) (3,235,383)
Other employee benefits P
= 12,988,855 P
= 12,922,044
(Note 25) 57,051,644 39,262,138 27,177,408
P
= 178,686,900 P
= 166,807,334 P
= 128,965,716 The reconciliation between the statutory tax rates and the Company’s effective tax rates on income
before income tax is as follows:
Other employee benefits include the share-based payment expense amounting to P
=6.4 million and
P
= 4.4 million in 2010 and 2009, respectively (see Note 25). 2010 2009 2008
Provision for income tax at
18. Occupancy Costs statutory income tax rate 30.00% 30.00% 35.00%
Adjustments for:
This account consists of: Change in unrecognized
deferred tax assets 0.06% 0.15% 0.05%
2010 2009 2008 Interest income subjected
Utilities = 21,911,980
P P
= 21,832,797 P
= 22,171,291 to final tax (1.54%) (3.62%) (4.07%)
Condominium dues 9,821,697 9,947,577 9,931,799 Equity in net income of
Security and janitorial services 8,950,729 9,300,171 9,297,845 an associate (1.43%) (0.38%) –
= 40,684,406
P P
= 41,080,545 P
= 41,400,935 Nondeductible expenses (1.99%) – –
Effect of change in tax rate – – 0.26%
Effective income tax rate 25.10% 26.15% 31.24%
19. Income Taxes
In 2009, the corporate income tax rate was reduced from 35% to 30% in accordance with Republic
The provision for income tax consists of: Act No. 9337. The change in enacted tax rates was considered in the computation of deferred
income tax.
2010 2009 2008
RCIT P
= 125,002,938 P
= 65,091,891 P
= 96,981,788
Final 14,976,414 15,854,903 21,514,974 20. Retirement Plan
Deferred (66,811) (7,398,304) 13,934,622
P
= 139,912,541 P
= 73,548,490 P
= 132,431,384 The Parent Company has a funded noncontributory defined benefit retirement plan, while SCCP
has an unfunded noncontributory defined benefit retirement plan covering all their regular
employees. The benefits are accumulated based on years of service and compensation per year of
credited service.

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The Parent Company’s retirement fund is being managed by a local bank. Changes in the present value of the defined benefit obligation are as follows:

The principal actuarial assumptions used in determining retirement liabilities as of January 1, 2010 Parent Company SCCP
and 2009 are shown below: 2010 2009 2010 2009
Balance at beginning of year P
= 45,201,713 P
= 35,623,584 P
= 7,221,418 P
= 4,097,548
Parent Company SCCP Actuarial losses 11,924,200 303,810 867,606 1,794,436
2010 2009 2010 2009 Current service cost 8,054,829 6,814,874 1,157,732 782,411
Discount rate 8.25% 11.60% 7.88% 13.35% Interest cost on benefit obligation 4,990,269 4,132,336 662,926 547,023
Expected rate of return on assets 6.00% 6.00% – – Actual benefits paid (966,761) (1,672,891) (745,767) –
Future salary increases 10.00% 10.00% 10.00% 10.00% Balance at end of year P
= 69,204,250 P
= 45,201,713 P
= 9,163,915 P
= 7,221,418

The overall expected rate of return on plan assets is determined based on the market prices The movements in the fair value of plan assets recognized by the Parent Company follow:
prevailing on that date applicable to the period over which the obligation is to be settled.
2010 2009
The latest actuarial valuation studies of the retirement plan of the Parent Company and SCCP were Balance at beginning of year P
= 38,741,708 P
= 14,509,085
made on December 31, 2010. Expected return on plan assets 2,705,002 870,545
Actual benefits paid (966,761) (1,672,891)
The retirement expense included under Compensation and other related staff costs in the
Actuarial gain (loss) (1,139,466) 1,096,917
consolidated statements of comprehensive income are as follows:
Contributions 22,117,243 23,938,052
2010 2009 2008 Balance at end of year P
= 61,457,726 P
= 38,741,708
Current service cost P
= 9,212,561 P
= 7,597,285 P
= 5,267,763
Interest cost 5,653,195 4,679,359 1,874,747 The actual return on the plan assets of the Parent Company amounted to P
= 1.6 million,
Net actuarial loss recognized 553,615 608,500 401,113 P
= 2.0 million, and P
= 0.1 million in 2010, 2009 and 2008, respectively.
Expected return on plan assets (2,705,002) (870,545) (960,550)
Reversal of retirement benefits (1,890,000) – – The major categories of the Parent Company’s plan assets as a percentage of the fair value of total
= 10,824,369
P P
= 12,014,599 P
= 6,583,073 plan assets as of December 31, 2010 and 2009 are as follows:

2010 2009
The Parent Company’s retirement asset included in the consolidated balance sheets as of
December 31, 2010 and 2009 are as follows: Investment in government debt securities 63.91% 70.44%
Investment in private debt securities 35.86% 28.83%
2010 2009 Other assets 0.23% 0.73%
Present value of the obligation P
= 69,204,250 P
= 45,201,713
Fair value of plan assets (61,457,726) (38,741,708) Amounts for the current and previous years are as follows:
7,746,524 6,460,005 Parent Company
Unrecognized actuarial losses (29,818,881) (17,244,617) 2010 2009 2008 2007 2006
Retirement asset P
= 22,072,357 P
= 10,784,612 Present value of the obligation P
= 69,204,250 P
= 45,201,713 P
= 35,623,584 P= 20,849,048 P
= 13,582,821
Fair value of plan assets (61,457,726) (38,741,708) (14,509,085) (16,009,167) (5,580,768)
The net unfunded retirement obligation of SCCP recognized in the consolidated balance sheets as Deficit 7,746,524 6,460,005 21,114,499 4,839,881 8,002,053
of December 31, 2010 and 2009 are as follows: Experience adjustment on plan liabilities (2,570,263) (1,918,317) 19,205,036 (614,703) 2,655,360
Experience adjustment on plan assets (1,139,466) 100,965 (813,601) (35,825) 2,750,100
2010 2009 SCCP
Present value of the obligation P
= 9,163,915 P
= 7,221,418 2010 2009 2008 2007 2006
Unrecognized actuarial losses (3,130,859) (2,327,466) Present value of the obligation P
= 9,163,915 P
= 7,221,418 P
= 4,097,548 P
= 3,172,776 P
= 3,252,779
Retirement liabilities P
= 6,033,056 P
= 4,893,952 Deficit 9,163,915 7,221,418 4,097,548 3,172,776 3,252,779
Experience adjustment on plan liabilities 170,224 157,451 229,566 733,041 393,273

The Philippine Stock Exchange, Inc. 2010 Annual Report 96 97 Charging to New Highs
 - 35 - - 36 -

21. Basic/Diluted Earnings Per Share 2010 2009 2008

Short-term employee benefits P
= 39,171,278 P
= 54,210,714 P
= 44,728,139
Basic earnings per share are calculated by dividing the net income for the year by the weighted Share-based payments (Note 25) 6,463,639 2,082,815 135,153
average number of common shares outstanding as of balance sheet date. Post-employment pension and
medical benefits (Note 20) 701,982 887,173 376,082
The basic and diluted earnings per share are the same as the dilutive effect of potential common P
= 46,336,899 P
= 57,180,702 P
= 45,239,374
shares from share-based payments have no impact.
Short-term employee benefits include salaries, paid annual leave, vacation and sick leave, profit
2010 2009 2008 sharing and bonuses, and non-monetary benefits.
Net income (a) P
= 417,497,291 P
= 207,743,248 P
= 291,479,390
Weighted average number of
outstanding common shares 23. Operating Segment
(b) 30,561,502 30,518,598 30,521,687
Basic/diluted earnings per share The Group has one reportable business segment which is the equity securities market. The equity
(a/b) P
= 13.66 P
= 6.81 P
= 9.55 securities market provides trading, clearing, depository and information services for the equity
market. The Group also has one geographical segment and derives all its revenues from domestic
operations. The financial information about the sole business segment is presented in the
consolidated financial statements.
22. Related Party Transactions
The management monitors the operating results of its business segment for the purpose of making
Parties are considered to be related if one party has the ability, directly or indirectly, to control the decisions about resource allocation and performance assessment. The segment performance is
other party or exercise significant influence over the other party in making financial and operating evaluated based on operating profit or loss and is measured consistently with the income before
decisions. Parties are also considered to be related if they are subject to common control or income tax in the consolidated financial statements.
common significant influence. Related parties may be individuals or corporate entities. Related
parties include brokers that are stockholders of the Group. The Group, in its normal course of
business, has transactions with related parties.
24. Contingencies
The year-end balances in respect of brokers (stockholders of the Exchange) included in the balance In 2007, the Parent Company’s BOD appropriated a portion of its retained earnings amounting to
sheets are as follows: P
= 3.0 million to cover potential liability cases filed against the Parent Company, its directors and/or
officers. As of March 9, 2011, the said cases are still pending before the courts and quasi-judicial
2010 2009 agencies. The amount of the appropriation which is based on available relevant information as of
Accounts and other receivable from brokers - net of December 31, 2010, will be reassessed periodically to reflect material developments made known
allowance for impairment losses of to the Parent Company.
P
= 67,788 in 2010 and P
= 861,659 in 2009 P
= 44,940,682 P
= 26,240,105
The SCCP, as the central counterparty to stock exchange transactions, has contingent liabilities
The income in respect of the brokers included in the consolidated statements of comprehensive pertaining to outstanding trades as of December 31, 2010 and 2009. Details of stock exchange
income follows: transactions outstanding as of balance sheet dates are as follows:
2010 2009 2008 2010 2009
Trading-related fees: Value of shares not yet delivered (net selling) = 8,935,410,286
P P
= 2,754,412,842
Transaction P
= 97,486,442 P
= 66,205,348 P
= 58,837,694 Amount of purchases unpaid (due clearing) 2,941,139,487 854,235,301
Block sales 23,251,314 33,210,297 17,552,424 = 11,876,549,773
P P
= 3,608,648,143
Subscription 16,658,219 18,243,119 16,754,391
Service fees 215,604,239 177,575,563 136,404,494 The settlement of trades of Manila Electric Company (MER) shares executed on December 12, 15
Other revenues 3,622,976 5,206,946 1,971,321 and 16, 2008 was suspended on December 17, 2008 (included in the outstanding trades on
December 31, 2008) pending the downloading by Philippine Depository & Trust Corp. of broker
Other revenues include recoveries from printing of data transaction report, penalty on trading floor, balances due to a dispute over 42,002,750 MER shares in the name of Land Bank of the
cancellation of matched orders, and other fees. Philippines which were cancelled by MER and thereafter issued in favor of Josefina Lubrica. On
January 23, 2009, the December 12, 15 and 16, 2008 MER transactions were settled through the
Compensation of key management personnel (covering officer positions starting from Assistant delivery of MER shares which did not form part of the disputed MER shares.
Vice President and up) included under “Compensation and other related staff costs” in the profit or
loss as follows:

The Philippine Stock Exchange, Inc. 2010 Annual Report 98 99 Charging to New Highs
 - 37 - - 38 -

As of December 31, 2010 and 2009, all transactions outstanding as of balance sheet date were
settled. Accordingly, no failed trades occurred from these transactions.
25. Share-based Payments
26. Clearing and Trade Guaranty Fund (CTGF)
The CTGF is a risk management tool designed to protect the market against the settlement risks of
clearing members. Each active clearing member’s monthly contribution is equivalent to 1/500 of
1% of the members’ trade value, net of block sales and cross transactions of the same flag.

On March 26, 2008, the BOD of the Exchange approved the ESPP for its employees and SCCP’s Starting in 2010, the CTGF was presented off balance sheet and is not included within the
employees, with the following terms and condition: noncurrent assets and noncurrent liabilities in the consolidated balance sheets. The revised
presentation is to better reflect the brokers’ contribution as trust monies and does not result in a
a. number of shares allotted for the offering is 150,000 shares or about 1% of the outstanding change in net assets of the Group. Accordingly, the 2009 balance relating to the CTGF
capital stock of the Exchange. Each offering consists of 50,000 shares; (“Investments of Clearing and Trade Guaranty Fund” and “Due to Clearing and Trade Guaranty
b. all regular employees in good standing of the Exchange and SCCP with at least 1 year of Fund”)were also presented off balance sheet to conform with the 2010 presentation
continuous service as of the offer date is eligible;
c. offer date is annual for a period of 3 years exercisable from July to December of each year; The CTGF consists of:
d. offer price is fixed based on Volume Weighted Average Price of PSE shares of the month
preceding the offer date; 2010 2009
e. discount of 10% from the offer price; and Principal contributions from:
f. cash payment is required during the exercise period. Brokers
Balance at beginning of year P
= 203,891,434 P
= 168,097,684
The rollforward analysis of number of shares on ESPP is as follows: Contributions 31,795,301 35,793,750
Balance at end of year 235,686,735 203,891,434
2010 2009 The Exchange 80,000,000 80,000,000
Outstanding at beginning of year 12 7,760 315,686,735 283,891,434
Granted during the year 50,000 50,000 Accumulated income:
Exercised during the year (49,358) (57,748) Balance at beginning of year 172,323,947 155,600,443
Outstanding at end of year 654 12 Interest income - net of management fee of
P
= 512,836 in 2010 and P = 454,997 in 2009 17,351,618 16,723,504
In 2009, a total of 57,760 shares of the Exchange were available for availment, which consist of Balance at end of year 189,675,565 172,323,947
50,000 original shares for the second tranche and the remaining 7,760 shares from the first tranche. Net unrealized gains (losses) on AFS investments 6,961,287 (819,567)
Subscription period was from July to December 2009 with an exercise price of P =238.02 per share 196,636,852 171,504,380
while the average fair value at grant date was P
=320.45, which is based on quoted market price. P
= 512,323,587 = 455,395,814
P

Out of the 57,748 shares of the Exchange that were availed of and fully paid by the participants
Contributions
under the ESPP, 52,653 shares and 5,095 shares were availed by the Exchange’s and SCCP’s
In order for the SCCP to effectively implement its Fails Management function, the CTGF must be
employees, respectively, resulting to an expense amounting to P =4.4 million for the Group, and a
adequate to cover any unsettled trade by any member on any settlement day. Fails Management
credit to additional paid-in capital amounting to P
= 18.4 million.
aims to settle a failed trade due to nonpayment of cash and/or nondelivery of securities by clearing
The Exchange processed and finalized the subscription of the availed shares in January 2009 and
members. In this regard, the Group continuously builds up the CTGF through the monthly
the stocks were transferred in the name of the employees on January 29, 2009. contributions collected from the clearing participants and collection of initial contributions from
new and returning trading participants.
In 2010, a total of 50,012 shares of the Exchange were available for availment, which consist of
50,000 original shares for the third tranche and the remaining 12 shares from the second tranche. On January 28, 2003, the SCCP’s BOD approved the amendment of its rules on CTGF providing
Subscription period was from July to December 2010 with an exercise price of P =237.46 per share for the non-recourse of all CTGF contributions to members. In July 2007, the SCCP’s BOD
while the average fair value at grant date was P
= 326.62, which is based on quoted market price. approved the full refund of contributions to the CTGF upon cessation of business of the clearing
member and upon termination of its membership with the SCCP. This is subject to approval by
Out of the 49,358 shares of the Exchange that were availed of and fully paid by the participants the SEC.
under the ESPP, 44,058 shares and 5,300 shares were availed by the Exchange’s and SCCP’s
employees, respectively, resulting to an expense amounting to P =6.4 million for the Group, and a
credit to additional paid-in capital amounting to P
= 18.2 million.

The Philippine Stock Exchange, Inc. 2010 Annual Report 100 101 Charging to New Highs
 - 39 - - 40 -

Assets of CTGF 27. Reclassification of Accounts

The assets of the CTGF consist of:
The comparative information has been reclassified from the consolidated financial statements
2010 2009 previously presented to conform to the presentation of the consolidated financial statements for the
Cash in bank = 29,738,829
P P
= 26,919,241 period ended December 31, 2010.
Accounts receivable 2,751,684 1,513,174
Accrued interest receivable 2,453,323 4,074,286
AFS investments - debt securities: 28. Events after the Reporting Date
Principal amount 471,734,000 425,335,000
Net unamortized discount (802,700) (1,171,323) The BOD in its meeting held on May 26, 2010, approved the spin-off of the Market Regulation
Net unrealized gains (losses) on AFS investments 6,961,287 (819,567) Division. The creation of a wholly owned and self regulatory company will be named as Capital
512,836,423 455,850,811 Markets Integrity Corporation that will function as the independent audit, surveillance and
Less accrued management fees 512,836 454,997 compliance unit of the PSE with the authority to adopt, enforce, implement and interpret rules,
= 512,323,587
P P
= 455,395,814 guidelines and securities laws applicable to the operations and dealings of trading participants and
other market participants of the Exchange. The Exchange paid P = 50.00 million as capitalization for
The CTGF invested on the following: incorporation and registration of the corporation. Its name and articles of incorporation were
approved by SEC on January 26, 2011.
a. Securities issued or guaranteed by the Republic of the Philippines; and
b. Such other investments as the SCCP’s BOD may approve, taking into consideration the On March 9, 2011, the BOD approved the declaration of regular cash dividends of P = 6.16 per share
liquidity requirements of the clearing fund. and special cash dividends of P
=5.84 per share out of the unappropriated retained earnings of the
Parent Company as of December 31, 2010 in favor of stockholders of record as of March 24, 2011.
As of December 31, 2010 and 2009, AFS investments with principal amounts of P =173.9 million The cash dividends will be paid on April 11, 2011.
and P
=391.3 million, respectively, will mature within one year from balance sheet date.

Net unrealized gains (losses) from CTGF investments held as AFS follows:

2010 2009
Balance at beginning of year (P
= 819,567) (P
= 1,409,520)
Change in fair value 7,780,854 589,953
Balance at end of year P
= 6,961,287 (P
= 819,567)

For the management and administration of CTGF, the SCCP is entitled to a management fee
computed at 0.1% of CTGF fund level as of the close of year. Management fee amounting to
P
= 0.5 million in 2010 and 2009, is included under “Other revenues” account in the Group’s profit
or loss.

Any proceeds from the CTGF shall not be used for any purpose other than for:

a. Payment of the net money obligations of a defaulting buying member in order to settle a failed
trade
b. Buy-in of relevant securities due from a defaulting selling member in order to settle a failed
trade;
c. The satisfaction of losses, liabilities and expenses of the SCCP incidental to the operation of its
clearing and settlement functions and the management of the CTGF;
d. For use as collateral in securing credit facilities from the Settlement Banks for the purpose of
settling a Failed Trade;
e. For use as collateral in borrowing securities through the Securities Borrowing and Lending
Facility; and
f. Payment of premium on any insurance policy taken for the CTGF.

The Philippine Stock Exchange, Inc. 2010 Annual Report 102 103 Charging to New Highs
 Issue Code Par Value Issue Code Par Value
Listed Issues as of Yearend 2010 (Php) (Php)

Aboitiz Equity Ventures, Inc. AEV 1.00 Marsteel Consolidated, Inc. “A” MC 0.01
Issue Code Par Value Issue Code Par Value
Alliance Global Group, Inc. AGI 1.00 Marsteel Consolidated, Inc. “B” MCB 0.01
(Php) (Php)
Marcventures Holdings, Inc. MARC 1.00 Megaworld Corporation MEG 1.00
A. Soriano Corporation ANS 1.00 MRC Allied, Inc. MRC 0.20
Financials Sector Liberty Flour Mills, Inc. LFM 10.00
Alcorn Gold Resources Corporation APM 0.01 Philippine Estates Corporation PHES 1.00
Pancake House, Inc. PCKH 1.00
Anglo Philippine Holdings Corporation APO 1.00 Primetown Property Group, Inc. PMT 1.00
Banks San Miguel Pure Foods Company, Inc. PF 10.00
ATN Holdings, Inc. “A” ATN 1.00 Polar Property Holdings Corporation PO 1.00
AsiaTrust Development Bank, Inc. ASIA 10.00 Pepsi-Cola Products Philippines, Inc. PIP 0.15
ATN Holdings, Inc. “B” ATNB 1.00 Primex Corporation PRMX 1.00
Banco de Oro Unibank, Inc. BDO 10.00 Roxas and Company, Inc. RCI 1.00
BHI Holdings, Inc. BH 100.00 Robinsons Land Corporation RLC 1.00
Banco Filipino Savings & Mortgage Bank BF 100.00 RFM Corporation RFM 1.00
DMCI Holdings, Inc. DMC 1.00 Philippine Realty & Holdings Corporation RLT 1.00
Bank of the Philippine Islands BPI 10.00 Roxas Holdings, Inc. ROX 1.00
Fil-Estate Corporation FC 1.00 Shang Properties, Inc. SHNG 1.00
China Banking Corporation CHIB 100.00 Swift Foods, Inc. SFI 1.00
Filinvest Development Corporation FDC 1.00 Sta. Lucia Land, Inc. SLI 1.00
Chinatrust (Phils.) Commercial Bank Corporation CHTR 10.00 San Miguel Brewery, Inc. SMB 1.00
F & J Prince Holdings Corporation “A” FJP 1.00 SM Development Corporation SMDC 1.00
Citystate Savings Bank, Inc. CSB 10.00 San Miguel Corporation SMC 5.00
F & J Prince Holdings Corporation “B” FJPB 1.00 San Miguel Properties, Inc. SMP 10.00
Export and Industry Bank, Inc. “A” EIBA 0.25 Tanduay Holdings, Inc. TDY 1.00
Forum Pacific, Inc. FPI 1.00 SM Prime Holdings, Inc. SMPH 1.00
Export and Industry Bank, Inc. “B” EIBB 0.25 Philippine Tobacco Flue-Curing & Redrying Corporation TFC 1.00
House of Investments, Inc. HI 1.50 Suntrust Home Developers, Inc. SUN 1.00
Metropolitan Bank & Trust Company MBT 20.00 Universal Robina Corporation URC 1.00
JG Summit Holdings, Inc. JGS 1.00 Universal Rightfield Property Holdings, Inc. UP 1.00
Philippine Bank of Communications PBC 100.00 Vitarich Corporation VITA 1.00
Jolliville Holdings Corporation JOH 1.00 Uniwide Holdings, Inc. UW 1.00
Philippine National Bank PNB 40.00 Victorias Milling Company, Inc. VMC 10.00
Keppel Philippines Holdings, Inc. “A” KPH 1.00 Vista Land & Lifescapes, Inc. VLL 1.00
Philippine Savings Bank PSB 10.00
Keppel Philippines Holdings, Inc. “B” KPHB 1.00
Philippine Trust Company PTC 10.00 Construction, Infrastructure & Allied Services
Lodestar Investment Holdings Corporation LIHC 0.10 Services Sector
Rizal Commercial Banking Corporation RCB 10.00 AGP Industrial Corporation “A” AGP 6.00
Lopez Holdings Corporation LPZ 1.00
Security Bank Corporation SECB 10.00 AGP Industrial Corporation “B” AGPB 6.00
Mabuhay Holdings Corporation MHC 1.00 Media
Union Bank of the Philippines UBP 10.00 Concrete Aggregates Corporation “A” CA 10.00
Minerales Industrias Corporation MIC 1.00 ABS-CBN Corporation ABS 1.00
Concrete Aggregates Corporation “B” CAB 10.00
MJC Investments Corporation MJIC 1.00 GMA Network, Inc. GMA7 1.00
Other Financial Institutions Southeast Asia Cement Holdings, Inc. CMT 0.35
UEM Development Philippines, Inc. MK 1.00 Manila Bulletin Publishing Corporation MB 1.00
ATR KimEng Financial Corporation ATRK 1.00 EEI Corporation EEI 1.00
Metro Pacific Investments Corporation MPI 1.00 Manila Broadcasting Company MBC 1.00
Bankard, Inc. BKD 1.00 Federal Resources Investment Group, Inc. FED 1.00
Pacifica, Inc. PA 0.01
BDO Leasing and Finance, Inc. BLFI 1.00 Holcim Philippines, Inc. HLCM 1.00
Prime Orion Philippines, Inc. POPI 1.00 Telecommunications
CitisecOnline.com, Inc. COL 1.00 Mariwasa SIAM Holdings, Inc. MMI 1.00
Prime Media Holdings, Inc. PRIM 1.00 Digital Telecommunications Phils., Inc. DGTL 1.00
First Abacus Financial Holdings Corporation FAF 1.00 Phinma Corporation PHN 10.00
Republic Glass Holdings Corporation REG 1.00 Globe Telecom, Inc. GLO 50.00
Filipino Fund, Inc. FFI 1.00 Philippine National Construction Corporation PNC 10.00
Solid Group, Inc. SGI 1.00 Liberty Telecoms Holdings, Inc. LIB 1.00
First Metro Investment Corporation FMIC 10.00 Republic Cement Corporation RCM 1.00
Sinophil Corporation SINO 1.00 PLDT Communications and Energy Ventures, Inc. PCEV 1.00
I-Remit, Inc. I 1.00 Supercity Realty Development Corporation SRDC 1.00
SM Investments Corporation SM 10.00 Philippine Telegraph & Telephone Corporation PTT 1.00
Medco Holdings, Inc. MED 1.00 Sanitary Wares Manufacturing Corporation SWM 1.00
South China Resources, Inc. SOC 1.00 Philippine Long Distance Telephone Company “Common” TEL 5.00
Manulife Financial Corporation MFC - TKC Steel Corporation T 1.00
Seafront Resources Corporation SPM 1.00
National Reinsurance Corporation of the Philippines NRCP 1.00 Vulcan Industrial & Mining Corporation VUL 1.00
Unioil Resources & Holdings Company, Inc. UNI 1.00 Information Technology
The Philippine Stock Exchange, Inc. PSE 1.00
Wise Holdings, Inc. “A” WHI 1.00 Boulevard Holdings, Inc. BHI 0.10
Sun Life Financial Inc. SLF Chemicals -
Wise Holdings, Inc. “B” WHIB 1.00 IP-Converge Data Center, Inc. CLOUD 1.00
Vantage Equities, Inc. V Chemical Industries of the Philippines
1.00 CIP 10.00
Wellex Industries, Inc. WIN 1.00 DFNN Inc. DFNN 1.00
Chemrez Technologies, Inc. COAT 1.00
Zeus Holdings, Inc. ZHI 1.00 Imperial Resources, Inc. “A” IMP 5.00
Industrial Sector Euro-Med Laboratories Phil., Inc. EURO 1.00
LMG Chemicals Corporation LMG 1.00 Imperial Resources, Inc. “B” IMPB 5.00
Property Sector IP E-Game Ventures, Inc. EG 1.00
Electricity, Energy, Power & Water Metro Alliance Holdings & Equities Corporation “A” MAH 1.00
Arthaland Corporation ALCO 0.18 IPVG Corporation IP 1.00
Alsons Consolidated Resources, Inc. ACR 1.00 Metro Alliance Holdings & Equities Corporation “B” MAHB 1.00
Anchor Land Holdings, Inc. ALHI 1.00 Island Information & Technology, Inc. IS 0.01
Aboitiz Power Corporation AP 1.00 Manchester International Holdings Unlimited Corporation “A” MIH 1.00
Ayala Land, Inc. ALI 1.00 ISM Communications Corporation ISM 1.00
Energy Development Corporation EDC 1.00 Manchester International Holdings Unlimited Corporation “B” MIHB 1.00
Araneta Properties, Inc. ARA 1.00 Nextstage, Inc. NXT 1.00
First Gen Corporation FGEN 1.00 Mabuhay Vinyl Corporation MVC 1.00
Belle Corporation BEL 1.00 Transpacific Broadband Group International, Inc. TBGI 1.00
First Philippine Holdings Corporation FPH 10.00 Pryce Corporation PPC 1.00
A Brown Company, Inc. BRN 1.00 PhilWeb Corporation WEB 1.00
Manila Electric Company MER 10.00
Cityland Development Corporation CDC 1.00
Manila Water Company, Inc. MWC 1.00 Diversified Industrials
Crown Equities, Inc. CEI 0.10 Transportation Services
Petron Corporation PCOR 1.00 Active Alliance, Inc. AAI 1.00
Cebu Holdings, Inc. CHI 1.00 Asian Terminals, Inc. ATI 1.00
Phoenix Petroleum Philippines, Inc. PNX 1.00 Alphaland Corporation ALPHA 1.00
Cebu Property Venture & Development “A” CPV 1.00 Aboitiz Transport System (ATSC) Corporation ATS 1.00
East Asia Power Resources Corporation PWR 1.00 Filsyn Corporation “A” FYN 5.00
Cebu Property Venture & Development “B” CPVB 1.00 Cebu Air, Inc. CEB 1.00
SPC Power Corporation SPC 1.00 Filsyn Corporation “B” FYNB 5.00
Cyber Bay Corporation CYBR 1.00 International Container Terminal Services, Inc. ICT 1.00
Trans-Asia Oil and Energy Development Corporation TA 1.00 Integrated Micro-Electronics, Inc. IMI 1.00
Empire East Land Holdings, Inc. ELI 1.00 Keppel Philippines Marine, Inc. KPM 1.00
Vivant Corporation VVT 1.00 Ionics, Inc. ION 1.00
Eton Properties Philippines, Inc. ETON 1.00 Lorenzo Shipping Corporation LSC 1.00
MUSX Corporation MUSX 0.10
Ever-Gotesco Resources & Holdings, Inc. EVER 1.00 MacroAsia Corporation MAC 1.00
Food, Beverage & Tobacco PICOP Resources, Inc. PCP 1.00
Filinvest Land, Inc. FLI 1.00 PAL Holdings, Inc. PAL 1.00
Alaska Milk Corporation AMC 1.00 Panasonic Manufacturing Philippines Corporation PMPC 1.00
Gotesco Land, Inc. “A” GO 1.00 Metro Pacific Tollways Corporation TOL 1.00
AgriNurture, Inc. ANI 1.00 Splash Corporation SPH 1.00
Gotesco Land, Inc. “B” GOB 1.00
Bogo-Medellin Milling Company, Inc. BMM 10.00 Steniel Manufacturing Corporation STN 1.00
Highlands Prime, Inc. HP 1.00 Hotel & Leisure
Central Azucarera de Tarlac, Inc. CAT 10.00
Interport Resources Corporation “A” IRC 1.00 Acesite (Philippines) Hotel Corporation DHC 1.00
Cosmos Bottling Corporation CBC 1.00 Holding Firms Sector
Interport Resources Corporation “B” IRCB 1.00 Grand Plaza Hotel Corporation GPH 10.00
Alliance Select Foods International, Inc. FOOD 1.00 Asia Amalgamated Holdings Corporation AAA 1.00
Keppel Philippines Properties, Inc. KEP 1.00 Leisure & Resorts World Corporation LR 1.00
Ginebra San Miguel, Inc. GSMI 1.00 Abacus Consolidated Resources and Holdings, Inc. ABA 1.00
City & Land Developers, Inc. LAND 1.00 Manila Jockey Club, Inc. MJC 1.00
Jollibee Foods Corporation JFC 1.00 Ayala Corporation AC 50.00
Fil-Estate Land, Inc. LND 1.00 Mondragon International Philippines, Inc. MON 1.00

The Philippine Stock Exchange, Inc. 2010 Annual Report 104 105 Charging to New Highs
Issue Code Par Value Issue Code Par Value
(Php) (Php) List of Active Trading Participants
Premiere Entertainment Philippines, Inc. PEP 1.00 Banco Filipino Savings & Mortgage Bank -
A & A SECURITIES, INC. 101 ALPHA SECURITIES CORPORATION 106 ASTRA SECURITIES CORP. 119
Philippine Racing Club, Inc. PRC 1.00 15½% Cum. Conv. Pref. BFC 100.00 (Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
SHIRLEY Y. BANGAYAN JONATHAN JOSEPH S. KUI BENITO B. H. ANG
Waterfront Philippines, Inc. WPI 1.00 Banco Filipino Savings & Mortgage Bank - (Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO
15½% Cum. Non-Conv. Pref. BFNC 100.00 Trading Floor: AYALA Trading Floor: TEKTITE Trading Floor: AYALA
Education DMCI Holdings, Inc. - Cumulative Convertible Pref. DMCP 1.00 Status: ACTIVE Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information: Contact Information:
Centro Escolar University CEU 1.00 First Philippine Holdings Corporation - Preferred FPHP 100.00 1906 Ayala Avenue Condominium 23/F, Orient Square Building 12/F, Tower One & Exchange Plaza
6776 Ayala Avenue, Makati City Emerald Avenue, Ortigas Center, Pasig City Ayala Avenue cor. Paseo de Roxas, Makati City
Far Eastern University, Inc. FEU 100.00 Globe Telecom, Inc. - Preferred A GLO-PA 5.00 Office: 891-1008 to 10 Office: 638-2388 to 93; 638-3764 Office: 848-6421 to 27
iPeople, Inc. IPO 1.00 Petron Corporation - Preferred PPREF 1.00 Exchange: 891-1008 to 10 Exchange: 638-6692 to 93; Exchange: 891-9126 to 27
Telefax: 891-1010 638-6689 Fax: 848-6428
Philippine Bank of Communications - Preferred PBCP 25.00 Email: aasec@pldtdsl.net Fax: 636-5108 astrasecurities@gmail.com
alphasec@pldtdsl.com.ph
Diversified Services Swift Foods, Inc. Convertible Pref. SFIP 1.00 A. T. DE CASTRO SECURITIES CORPORATION 104 ATC SECURITIES, INC. 120
(Corporate Trading Participant) ANGPING & ASSOCIATES SECURITIES, INC. 110 (Corporate Trading Participant)
APC Group, Inc. APC 1.00 PLDT 10% Cumulative Convertible Pref. Series A TELA 10.00 ALEJANDRO T. DE CASTRO (Corporate Trading Participant) ANSELMO TRINIDAD JR.
Berjaya Philippines, Inc. BCOR 1.00 PLDT 10% Cumulative Convertible Pref. Series B TELB 10.00 (Nominee Trading Participant) WILMA C. CRISOSTOMO (Nominee Trading Participant)
Nationality: FILIPINO (Nominee Trading Participant) Nationality: FILIPINO
EasyCall Communications Philippines, Inc. ECP 1.00 PLDT 10% Cumulative Convertible Pref. Series C TELC 10.00 Trading Floor: AYALA Nationality: FILIPINO Trading Floor: AYALA
Status: ACTIVE Trading Floor: AYALA Status: ACTIVE
Information Capital Technology Ventures, Inc. ICTV 1.00 PLDT 10% Cumulative Convertible Pref. Series D TELD 10.00 Contact Information: Status: ACTIVE Contact Information:
7/F, Tower One & Exchange Plaza Contact Information: Unit 6F, 6th Floor 8101 Pearl Plaza,
JTH Davies Holdings, Inc. JTH 0.50 PLDT 10% Cumulative Convertible Pref. Series E TELE 10.00 Ayala Avenue cor. Paseo de Roxas, Makati City Suite 2003-2004, The Peak 107 L. P. Leviste Street, Pearl Drive Ortigas Center, Pasig City
Pacific Online Systems Corporation LOTO 1.00 PLDT 10% Cumulative Convertible Pref. Series F TELF 10.00 Office: 848-7160 to 63 Salcedo Village, Makati City Office: 683-0204; 687-1768
Exchange: 848-7160 to 63 Office: 848-2915 687-2866; 683-0201
MIC Holdings Corporation MET 100.00 PLDT 10% Cumulative Convertible Pref. Series G TELG 10.00 Telefax: 848-7163 Office of the President 810-0930 Exchange: 891-9337 to 38
Email: atcastro@info.com.ph Office of the EVP 848-2564 Fax: 687-1760
Paxys, Inc. PAX 1.00 PLDT 10% Cumulative Convertible Pref. Series H TELH 10.00 Exchange: 891-9115 atcsettle@pacific.net.ph
AAA SOUTHEAST EQUITIES, INC. 237 Fax: 848-2572
Philcomsat Holdings Corporation PHC 1.00 PLDT 10% Cumulative Convertible Pref. Series I TELI 10.00 (Corporate Trading Participant) wcris@angping.com.ph ATR KIMENG SECURITIES, INC. 220
Philippine Seven Corporation SEVN 1.00 PLDT 10% Cumulative Convertible Pref. Series J TELJ 10.00 D. ALFRED A. CABANGON sgogola@angping.com.ph (Corporate Trading Participant)
(Nominee Trading Participant) RAMON B. ARNAIZ
PLDT 10% Cumulative Convertible Pref. Series K TELK 10.00 Nationality: FILIPINO (Nominee Trading Participant)
Trading Floor: AYALA ANSALDO, GODINEZ & COMPANY, INC. 111 Nationality: FILIPINO
Mining & Oil Sector PLDT 10% Cumulative Convertible Pref. Series L TELL 10.00 Status: ACTIVE (Corporate Trading Participant) Trading Floor: AYALA
Contact Information: MARIANO U. GODINEZ Status: ACTIVE
PLDT 10% Cumulative Convertible Pref. Series M TELM 10.00 G/F Fortune Life Building 162 Legaspi Street, Legaspi Village, (Nominee Trading Participant) Contact Information:
Mining PLDT 10% Cumulative Convertible Pref. Series N TELN 10.00 Makati City Nationality: FILIPINO 17/F, Tower One & Exchange Plaza
Office: 816-2918 Trading Floor: TEKTITE Ayala Avenue cor. Paseo de Roxas, Makati City
Atok-Big Wedge Company, Inc. AB 1.00 PLDT 10% Cumulative Convertible Pref. Series O TELO 10.00 892-9841 to 49 loc. 103 Status: ACTIVE Office: 848-5298; 849-8888
Exchange: 891-9570 to 72 Contact Information: Dealing Room 848-5288
Apex Mining Company, Inc. “A” APX 1.00 PLDT 10% Cumulative Convertible Pref. Series P TELP 10.00 Fax: 812-1831 340 Nueva Street, Binondo, Manila Exchange: 891-9120;
Office: 242-5124 to 25; 891-9124 to 25
Apex Mining Company, Inc. “B” APXB 1.00 PLDT 10% Cumulative Convertible Pref. Series Q TELQ 10.00 AB CAPITAL SECURITIES, INC. 112 242-5127 to 31 Fax: General 848-5738
Abra Mining & Industrial Corporation AR 0.01 PLDT 10% Cumulative Convertible Pref. Series R TELR 10.00 (Corporate Trading Participant) Exchange: 634-5160 & 63; Settlements 848-5285
LAMBERTO M. SANTOS, JR. 634-6232 to 34; 634-6521 to 22 atrke_sec@atr.com.ph
Atlas Consolidated Mining & Development Corporation AT 10.00 PLDT 10% Cumulative Convertible Pref. Series S TELS 10.00 (Nominee Trading Participant) Fax: 242-5121
Nationality: FILIPINO AURORA SECURITIES, INC. 167
Benguet Corporation “A” BC 3.00 PLDT 10% Cumulative Convertible Pref. Series T TELT 10.00 Trading Floor: AYALA APEX PHILS. EQUITIES CORPORATION 255 EMMANUEL EDWARD C. CO
Status: ACTIVE (Corporate Trading Participant) (Natural Person Trading Participant)
Benguet Corporation “B” BCB 3.00 PLDT 10% Cumulative Convertible Pref. Series U TELU 10.00 Contact Information: JOSE ROBERTO DELGADO Nationality: FILIPINO
Century Peak Metal Holdings Corporation CPM 1.00 PLDT 10% Cumulative Convertible Pref. Series V TELV 10.00 3rd Floor, Phinma Plaza 39 Plaza Drive, (Nominee Trading Participant) Trading Floor: TEKTITE
Rockwell Center Makati City Nationality: FILIPINO Status: ACTIVE
Dizon Copper-Silver Mines, Inc. DIZ 1.00 PLDT 10% Cumulative Convertible Pref. Series W TELW 10.00 Office: 898-7555 Trading Floor: AYALA Contact Information:
Exchange: 891-9135 Status: ACTIVE 24/F, West Tower – PSE Centre,
GEOGRACE Resources Philippines, Inc. GEO 1.00 PLDT 10% Cumulative Convertible Pref. Series X TELX 10.00 Fax: 898-7596 Contact Information: Exchange Road, Ortigas Center,
Lepanto Consolidated Mining Company “A” LC 0.10 PLDT 10% Cumulative Convertible Pref. Series Y TELY 10.00 abcsi@abcapital.com.ph 2/F, Mary Bachrach Building Pasig City
www.abcapitalonline.com Port Area, Manila Office: 634-8321 to 24
Lepanto Consolidated Mining Company “B” LCB 0.10 PLDT 10% Cumulative Convertible Pref. Series Z TELZ 10.00 Office: 527-8888 loc. 219; Exchange: 634-8321 to 24
ABACUS SECURITIES CORPORATION 102 527-5291 Telefax: 634-8321
Manila Mining Corporation “A” MA 0.01 PLDT 10% Cumulative Convertible Pref. Series AA TLAA 10.00 (Corporate Trading Participant) Exchange: 891-8586 ausecinc@pldtdsl.net
PAULINO S. SOO Fax: 527-8919; 527-8912
Manila Mining Corporation “B” MAB 0.01 PLDT 10% Cumulative Convertible Pref. Series BB TLBB 10.00 (Nominee Trading Participant) B. H. CHUA SECURITIES CORPORATION 124
Nickel Asia Corporation NIKL 0.50 PLDT 10% Cumulative Convertible Pref. Series CC TLCC 10.00 Nationality: FILIPINO ARMSTRONG SECURITIES, INC. 388 MICHAEL LI CHUA
Trading Floor: TEKTITE (Corporate Trading Participant) (Natural Person Trading Participant)
NiHAO Mineral Resources International, Inc. NI 1.00 PLDT 10% Cumulative Convertible Pref. Series DD TLDD 10.00 Status: ACTIVE TONY O. KING Nationality: FILIPINO
Contact Information: (Nominee Trading Participant) Trading Floor: AYALA
Omico Corporation OM 0.01 PLDT 10% Cumulative Convertible Pref. Series EE TLEE 10.00 29/F, East Tower – PSE Centre Exchange Road, Nationality: FILIPINO Status: ACTIVE
Ortigas Center, Pasig City Trading Floor: AYALA Contact Information:
Oriental Peninsula Resources Group, Inc. ORE 1.00 PLDT 10% Cumulative Convertible Pref. Series FF TLFF 10.00 Office: 667-8900 Status: ACTIVE 872 G. Araneta Avenue,
Philex Mining Corporation PX 1.00 PLDT 10% Cumulative Convertible Pref. Series GG TLGG 10.00 Exchange: 634-6993; 634-6842 Contact Information: Quezon City
Fax: Operations 634-5206 20th Floor, BDO South Tower, Office: 742-5850; 742-6032;
Semirara Mining Corporation SCC 1.00 PLDT 10% Cumulative Convertible Pref. Series HH TLHH 10.00 Inst’l. Sales 634-2107 Makati Ave. cor. H. V. dela Costa St., 412-3444
Retail/Customer Svc. 634-2109 Makati City Exchange: 891-9771 to 73
United Paragon Mining Corporation UPM 0.01 San Miguel Corporation - Preferred Series “1” SMCP1 5.00 Accounting 634-2105 Office: 878-4043 Telefax: 412-3448
customerservice@abacus-sec.com Exchange: 891-8534; 891-8542;
www.abacus-sec.com 891-8563 BA SECURITIES, INC. 109
Oil Warrants, Philippine Deposit Receipts, Etc. Fax: 840-7175 (Corporate Trading Participant)
ACCORD CAPITAL EQUITIES CORPORATION 103 ANG BIAO
Basic Energy Corporation BSC 0.25 ABS-CBN Holdings Corporation - (Corporate Trading Participant) ASIA PACIFIC CAPITAL EQUITIES (Nominee Trading Participant)
PAUL L. WEE & SECURITIES CORP. 116 Nationality: FILIPINO
Oriental Petroleum and Minerals Corporation “A” OPM 0.01 Philippine Deposit Receipts ABSP 0.10* (Nominee Trading Participant) (Corporate Trading Participant) Trading Floor: AYALA
Nationality: FILIPINO DAVID O. CHUA Status: ACTIVE
Oriental Petroleum and Minerals Corporation “B” OPMB 0.01 GMA Holdings, Inc. - Philippine Deposit Receipts GMAP 0.05* Trading Floor: TEKTITE (Nominee Trading Participant) Contact Information:
The Philodrill Corporation OV 0.01 Interport Resources - Warrants “A” IRWA 1.00* Status: ACTIVE Nationality: FILIPINO Room 401-403, CLMC Building
Contact Information: Trading Floor: AYALA 259-267 EDSA, Mandaluyong City
PNOC Exploration Corporation “A” PEC 1.00 Interport Resources - Warrants “B” IRWB 1.00* G/F, Unit EC-05B, Status: ACTIVE Office: 727-5374; 722-0132
PSE Centre-East Tower, Exchange Rd., Contact Information: Exchange: 891-9672 to 75
PNOC Exploration Corporation “B” PECB 1.00 Megaworld Corporation - Warrants1 MEGW1 1.00* Ortigas Center, Pasig City 24/F, Galleria Corporate Center Telefax: 722-0132
Office: (Trunk Line) 687-5071 EDSA cor. Ortigas Avenue, baseccom@info.com.ph
PetroEnergy Resources Corporation PERC 1.00 Megaworld Corporation - Warrants2 MEGW2 1.00* 687-3224; 687-3733 Quezon City
Omico Corporation - Warrants OMW2 0.01* Exchange: 687-0911; 687-0936 Office: 634-5621 BDO SECURITIES CORPORATION 279
Fax: 687-3738 Exchange: 891-9550 to 59; (Corporate Trading Participant)
Preferred info@accordcapital.ph 891-8571 EDUARDO V. FRANCISCO
www.accordcapital.ph Fax: 634-5813 (Nominee Trading Participant)
Allied Banking Corporation - 15% Cum. Convertible Pref. A ABC 1000.00 Small & Medium Enterprises apcap@compass.com.ph Nationality: FILIPINO
Ayala Corporation Preferred Class “A” Shares ACPA 100.00 Makati Finance Corporation MFIN 1.00 ALAKOR SECURITIES CORPORATION 232 Trading Floor: AYALA
(Corporate Trading Participant) ASIASEC EQUITIES, INC. 118 Status: ACTIVE
Ayala Corporation Preferred Class “B” Shares ACPR 100.00 iRipple, Inc. RPL 1.0 GERARD ANTON S. RAMOS (Corporate Trading Participant) Contact Information:
(Nominee Trading Participant) GIDEON G. SISON 20th Floor, BDO South Tower,
Aboitiz Transport System (ATSC) Corporation - Preferred ATSP 1.00 Nationality: FILIPINO (Nominee Trading Participant) Makati Ave. cor. H. V. dela Costa St., Makati City
Trading Floor: TEKTITE Nationality: FILIPINO Office: 878-4070
Benguet Corporation - 8% Cumulative Convertible Pref. A BCP 3.44 *exercise price Status: ACTIVE Trading Floor: AYALA 840-7000 loc. 6391; 6385; 6382
Contact Information: Status: ACTIVE 840-7000 loc. 6386; 6392; 6068
5/F, Quad Alpha Centrum Contact Information: Exchange: 848-5836; 848-7015
125 Pioneer Street, Mandaluyong City 8/F, Chatham House 116 Valero cor. Fax: 840-7175
Office: 631-8173;637-4496 Herrera Streets, Salcedo Village, Makati City
Exchange: 634-6928 to 29 Office: 845-3421 to 26
Fax: 631-5166 Exchange: 891-9370 to 75
Fax: 845-3418
aei@bloomberg.net

The Philippine Stock Exchange, Inc. 2010 Annual Report 106 107 Charging to New Highs
BELSON SECURITIES, INC. 122 CLSA PHILIPPINES, INC. 323 DIVERSIFIED SECURITIES, INC. 145 EVERGREEN STOCK GLOBALINKS SECURITIES & STOCKS, INC. 168 IGC SECURITIES, INC. 140
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant) BROKERAGE & SECURITIES, INC. 154 (Corporate Trading Participant) (Corporate Trading Participant)
EMMANUEL G. LIM RAYMOND M. TEMPONGKO RAMON C. GARCIA JR. (Corporate Trading Participant) DAVID L. WUSON ISMAEL G. CRUZ
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant) FRANCISCO S. GAISANO (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: DUTCH Nationality: FILIPINO (Nominee Trading Participant Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA Trading Floor: TEKTITE Nationality: FILIPINO Trading Floor: AYALA Trading Floor: AYALA
Status: ACTIVE Status: ACTIVE Status: ACTIVE Trading Floor: AYALA Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information: Contact Information: Status: ACTIVE Contact Information: Contact Information:
4/F, Belson House 271 EDSA, Mandaluyong City 19/F Tower 2, The Enterprise Center 5/F, PDCP Bank Centre Contact Information: 7/F, Tower One & Exchange Plaza 10/F, Tower One & Exchange Plaza
Office: 724-7586 to 90; 724-7580 6766 Ayala Avenue, Makati City Herrera cor. Alfaro Streets, Salcedo Village, Makati City 6/F, Tower One & Exchange Plaza Ayala Avenue cor. Paseo de Roxas, Makati City Ayala Avenue cor. Paseo de Roxas, Makati City
Exchange: 891-9860 to 68 Office: Trunkline: 860-4000 Office: 892-2890; 892-4330; Ayala Avenue cor. Paseo de Roxas, Makati City Office: 848-6341 to 42; Office: 891-9193 to 94
Fax: 721-9238 Sales & Dealing: 860-4030 753-5250 to 53 Office: 891-9451 to 58 759-4136 to 37 Exchange: 891-9190 to 92
Exchange: 891-9945; 759-4073 Exchange: 636-0814; Exchange: 891-9451 to 58 Exchange: 891-9920 to 22 Fax: 891-9194
BENJAMIN CO CA & COMPANY, INC. 123 Fax: 860-4065 634-6630 to 31 Fax: 891-9459 to 60 Telefax: 848-6341 to 43; igcsec@pldtdsl.net
(Corporate Trading Participant) raymond.tempongko@clsa.com Fax: 892-4330 759-4136 to 37
BENJAMIN CO CA wena_ruiz@hotmail.com F. YAP SECURITIES, INC. 162 IMPERIAL, DE GUZMAN, ABALOS & CO., INC. 182
(Nominee Trading Participant) COHERCO SECURITIES, INC. 387 www.dtrade.net (Corporate Trading Participant) GOLDEN TOWER SECURITIES & HOLDINGS, INC. 285 (Corporate Trading Participant)
Nationality: FILIPINO (Corporate Trading Participant) FELIPE U. YAP (Corporate Trading Participant) LEONIDES C. TIOTUICO
Trading Floor: TEKTITE WILFRED T. CO DW CAPITAL, INC. 328 (Nominee Trading Participant) KENNETH S. LAO (Nominee Trading Participant)
Status: ACTIVE (Nominee Trading Participant) (Corporate Trading Participant) Nationality: FILIPINO (Nominee Trading Participant) Nationality: FILIPINO
Contact Information: Nationality: FILIPINO DERWIN NGO WONG Trading Floor: TEKTITE Nationality: FILIPINO Trading Floor: TEKTITE
Rm. 301-305, Downtown Center Bldg. Trading Floor: AYALA (Nominee Trading Participant) Status: ACTIVE Trading Floor: AYALA Status: ACTIVE
516 Q. Paredes St., Binondo, Manila Status: ACTIVE Nationality: FILIPINO Contact Information: Status: ACTIVE Contact Information:
Office: 241-1261; 241-1345 Contact Information: Trading Floor: TEKTITE 17/F Lepanto Building, 8747 Paseo de Roxas, Makati City Contact Information: Ground Floor, EDSA Central Square
Exchange: 634-5186 to 90 8/F, Herco Center, 114 Benavidez Street, Status: ACTIVE Office: 856-7680 4/F, Vernida I Condominium 120 Amorsolo Street, Shaw Boulevard, Mandaluyong City
Fax: 241-1261 Legaspi Village, Makati City Contact Information: Exchange: 634-5171; 634-6917; Legaspi Village, Makati City Office: 633-2686; 634-5717;
Office: 818-7736 Unit 1610-1611 Tower One & Exchange Plaza, 634-5390 to 91; 634-6217 to 18 Office: 813-2839; 892-1316 631-8651 loc. 145
BERNAD SECURITIES, INC. 272 Exchange: 848-7301 Ayala Triangle, Ayala Avenue, Makati City Fax: 813-0865 Exchange: 891-9680 to 82 Exchange: 634-5161 & 66;
(Corporate Trading Participant) Fax: 818-7331 Office: 836-9633; 836-2719; Fax: 813-0321 634-5739; 634-5710
ELPHEGE WONG 836-1938 (Trading Department) FIDELITY SECURITIES, INC. 243 Fax: 633-4716
(Nominee Trading Participant) CREDIT SUISSE SECURITIES (PHILS.), INC. 311 Accounting Dept: 403-0709 (Corporate Trading Participant) GOLDSTAR SECURITIES, INC. 170 imperdga@yahoo.com
Nationality: FILIPINO (Corporate Trading Participant) Telefax: 403-0066 BEN C. TIU (Corporate Trading Participant)
Trading Floor: TEKTITE Joselito C. Vicencio, Jr. dwcapital1328@gmail.com (Nominee Trading Participant) JOSEPH L. MANCILLA JR. INTRA-INVEST SECURITIES, INC. 183
Status: ACTIVE (Nominee Trading Participant) Nationality: FILIPINO (Nominee Trading Participant) (Corporate Trading Participant)
Contact Information: Nationality: Hongkong E. CHUA CHIACO SECURITIES, INC. 147 Trading Floor: TEKTITE Nationality: FILIPINO JOSE MARIA A. DE LEON
3/F, 1033 M. H. del Pilar Street, Ermita, Manila Trading Floor: Tektite ERNESTO CHUA CHIACO Status: ACTIVE Trading Floor: TEKTITE (Nominee Trading Participant)
Office: 524-5326; 524-5186; Status: Active (Natural Person Trading Participant) Contact Information: Status: ACTIVE Nationality: FILIPINO
524-5267 19/F Tower 2, The Enterprise Center Nationality: FILIPINO 2/F, JTKC Centre 2155 Pasong Tamo, Makati City Contact Information: Trading Floor: AYALA
Exchange: 635-6756 to 60; 6766 Ayala Avenue, Makati City Trading Floor: AYALA Office: 818-6774; 812-6267 22/F, East Tower – PSE Centre Status: ACTIVE
635-5665 Office: 858-7770 Status: ACTIVE Exchange: 634-7110; 633-9707; Exchange Road, Ortigas Center, Pasig City Contact Information:
Fax: 523-7907 Fax: 858-7767 Contact Information: 633-9710; 633-9711 Office: 636-0197; 11/F, ACT Tower 135 Sen. Gil Puyat Avenue,
flor.ofilada@credit-suisse.com 113 Rentas Street, Fax: 810-3536 633-7485 to 86 Salcedo Village, Makati City
BPI SECURITIES CORPORATION 126 Binondo, Manila Exchange: 634-6765 & 69; Office: 813-8293 to 94
(Corporate Trading Participant) CUALOPING SECURITIES CORPORATION 141 Office: 242-5145; 241-9293 FIRST INTEGRATED CAPITAL SECURITIES, INC. 159 634-6983 & 87 Exchange: 891-9206; 891-9208
VICTOR L. VITAL (Corporate Trading Participant) Exchange: 891-9246 to 48 (Corporate Trading Participant) Fax: 633-7487 Fax: 892-1290
(Nominee Trading Participant) SIMEON S. CUA Fax: 243-3232 MANUEL MAÑALAC JR.
Nationality: FILIPINO (Nominee Trading Participant) eccsi@yahoo.com (Nominee Trading Participant) GUILD SECURITIES, INC. 172 INVESTORS SECURITIES, INC. 181
Trading Floor: AYALA Nationality: FILIPINO Nationality: FILIPINO (Corporate Trading Participant) (Corporate Trading Participant)
Status: ACTIVE Trading Floor: TEKTITE EAGLE EQUITIES, INC. 283 Trading Floor: AYALA ANTONIO B. ALVAREZ EDWARD GO
Contact Information: Status: ACTIVE JOSEPH Y. ROXAS Status: ACTIVE (Nominee Trading Participant) (Nominee Trading Participant)
19/F, BPI Head Office Contact Information: (Natural Person Trading Participant) Contact Information: Nationality: FILIPINO Nationality: FILIPINO
Ayala Avenue cor. Paseo de Roxas, Makati City Suite 1801 Tytana Centre Nationality: FILIPINO 12/F, Tower One & Exchange Plaza Trading Floor: AYALA Trading Floor: AYALA
Office: Marketing 816-9190; Plaza Lorenzo Ruiz, Binondo, Manila Trading Floor: TEKTITE Ayala Avenue cor. Paseo de Roxas, Makati City Status: ACTIVE Status: ACTIVE
816-9192; 845-5541; 845-5543 Office: 241-0262; 309-4258 Status: ACTIVE Office: 759-4320 to 23; Contact Information: Contact Information:
Administration 845-5289; Exchange: 634-5745 to 46; Contact Information: 891-9418 to 19 12/F, Tower One & Exchange Plaza 6/F, Tower One & Exchange Plaza
816-9678 634-5180; 634-5755 779 Harvard Street, Mandaluyong City Exchange: 759-4320 to 23; Ayala Avenue cor. Paseo de Roxas, Ayala Avenue cor. Paseo de Roxas,
Operations 845-5735; 816-9554 Fax: 241-0352 Office: 724-1584; 725-2777 891-9418 to 19 Makati City Makati City
Exchange: 891-9930; 845-5541; Exchange: 634-6684; 634-6283 Fax: 759-4326 Office: 891-9230; 891-9234 to 35 Office: 848-7032 to 33;
848-5543; 845-5545 DA MARKET SECURITIES, INC. 204 Fax: 725-2777 Exchange: 891-9232 to 37; 891-9441 to 42
Fax: 818-7809; 845-5733 (Corporate Trading Participant) FIRST METRO SECURITIES 891-9230 Exchange: 891-9441 to 46
bpitrade@bpi.com.ph NESTOR S. AGUILA EASTERN SECURITIES DEV’T. CORP. 150 BROKERAGE CORPORATION 267 Fax: 891-9231 Fax: 848-7034
www.bpitrade.com (Nominee Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant) guildsec@tri-isys.com
Nationality: FILIPINO GENEROSA R. JACINTO ROBERTO JUANCHITO T. DISPO J. M. BARCELON & COMPANY, INC. 188
CAMPOS, LANUZA & COMPANY, INC. 128 Trading Floor: AYALA Nationality: FILIPINO (Nominee Trading Participant) H. E. BENNETT SECURITIES, INC. 175 (Corporate Trading Participant)
(Corporate Trading Participant) Status: ACTIVE Trading Floor: AYALA Nationality: FILIPINO (Corporate Trading Participant) AMPARO V. BARCELON
GERARDO O. LANUZA JR. Contact Information: Status: ACTIVE Trading Floor: AYALA JESUS M. DELA PEÑA (Nominee Trading Participant)
(Nominee Trading Participant) Unit 6, 3rd Floor, The Fort Strip Bldg., Contact Information: Status: ACTIVE (Nominee Trading Participant) Nationality: FILIPINO
Nationality: FILIPINO Bonifacio Center, Fort Bonifacio Makati Sales Office: Contact Information: Nationality: FILIPINO Trading Floor: TEKTITE
Trading Floor: TEKTITE Global City, Taguig, Metro Manila 7/F, Tower One & Exchange Plaza 18/F, PS Bank Center, 777 Paseo de Roxas cor. Trading Floor: TEKTITE Status: ACTIVE
Status: ACTIVE Office: 887-5457; 887-6407 Ayala Avenue cor. Paseo de Roxas, Makati City Sedeño St. Makati City Status: ACTIVE Contact Information:
Contact Information: Exchange: 891-9143 to 44 Office: Makati 848-5491 to 95 Office: 859-0600 Contact Information: Unit 34 Casa Nueva,
20/F, East Tower – PSE Centre Telefax: 887-5457 Exchange: 891-9340 to 44 Fax: 859-0699 Rm. 1704, World Trade Exchange Bldg., Manga Road, New Manila, Quezon City
Exchange Road, Ortigas Center, Pasig City Exchange 891-9144 Fax: Makati 848-6349 customerservice@firstmetrosec.com.ph. 215 Juan Luna Street, Binondo, Manila Office: 725-1001; 725-1004
Office: 634-6881 to 87; 634-6888; dmsi8.care@houseofdavidgroup.ph eastern_securities@yahoo.com Office: Executive Office 242-5733 Exchange: 635-0236; 687-6317
636-3134; 638-3510; 636-3135; FIRST ORIENT SECURITIES, INC. 157 Dealing Room 241-6284;241-6458 Telefax: 411-2196
636-3138 DAVID GO SECURITIES CORPORATION 143 EASTWEST CAPITAL CORPORATION 149 (Corporate Trading Participant) Exchange: 634-5030; 634-6235
Exchange: 636-3001 to 05 (Corporate Trading Participant) EDILBERTO B. BRAVO TRINIDAD Y. KALAW Telefax: 245-6959 J. P. MORGAN SECURITIES PHILIPPINES, INC. 185
Fax: 636-1167 DAVID C. GO (Natural Person Trading Participant) (Nominee Trading Participant) hebsi@info.com (Corporate Trading Participant)
camposlanuza@yahoo.com (Nominee Trading Participant) Nationality: FILIPINO Nationality: FILIPINO MILAGROS CECILIA D. SUAREZ
Nationality: FILIPINO Trading Floor: AYALA Trading Floor: AYALA HDI SECURITIES, INC. 174 (Nominee Trading Participant)
CENTURY SECURITIES CORPORATION 130 Trading Floor: TEKTITE Status: ACTIVE Status: ACTIVE (Natural Person Trading Participant) Nationality: CAYMAN ISLANDS
CHAN KOK BIN Status: ACTIVE Contact Information: Contact Information: CHIA KIM TECK Trading Floor: TEKTITE
(Natural Person Trading Participant) Contact Information: 3rd Floor U-Bix Bldg., 1344 Angono Street, Makati City 12/F, Tower One & Exchange Plaza Nationality: SINGAPOREAN Status: ACTIVE
Nationality: FILIPINO Rm. 309 Federation Center Building Office: 897-7124; 897-6807 Ayala Avenue cor. Paseo de Roxas, Makati City Trading Floor: AYALA Contact Information:
Trading Floor: AYALA Muelle de Binondo, Binondo, Manila Exchange: 895-6008; 895-5638 Office: 891-9240; 891-9243 to 44 Status: ACTIVE 31/F, Philam Life Tower 8767 Paseo de Roxas, Makati City
Status: ACTIVE Office: 242-2375 & 79; 242-2467 Fax: 897-6805 Exchange: 891-9240 to 45 Contact Information: Office: General 885-7700;
Contact Information: Exchange: 634-5048 to 49; eastwest@ubix.com.ph Fax: 848-6175 Unit 2305-B, 23rd Floor, The Orient Square, F. Ortigas Ave. Sales 885-7801; 757-2101
Rm. 1105 Galleria Corporate Center 634-5178 fosisec@gmail.com (formerly Emerald Ave.), Ortigas Center, Pasig City, 1605 Exchange: 687-2364; 687-2370
EDSA cor. Ortigas Avenue, Quezon City Fax: 242-2467 EIB SECURITIES, INC. 261 Office: 687-7955; 687-7956; Fax: 885-7058 to 59
Office: 633-7044 to 46 dgosec@yahoo.com (Corporate Trading Participant) FRANCISCO ORTIGAS SECURITIES, INC. 161 687-7957; 910-6188
Exchange: 891-9880 to 81 DIONISIO E. CARPIO JR. (Corporate Trading Participant) Fax: 910-6189
Fax: 633-7047 DBP-DAIWA CAPITAL MARKET PHILIPPINES, INC. 142 (Nominee Trading Participant) FRANCISCO M. ORTIGAS III info@hdisecurities.com JAKA SECURITIES CORPORATION 125
(Corporate Trading Participant) Nationality: FILIPINO (Nominee Trading Participant) (Corporate Trading Participant)
CITISECURITIES, INC. 133 HIROAKI ARAI Trading Floor: AYALA Nationality: FILIPINO I. ACKERMAN & COMPANY, INC. 179 KATRINA C. PONCE-ENRILE
(Corporate Trading Participant) (Nominee Trading Participant) Status: ACTIVE Trading Floor: TEKTITE (Corporate Trading Participant) (Nominee Trading Participant)
EDWARD K. LEE Nationality: DUTCH Contact Information: Status: ACTIVE MA. LUISA C. ACKERMAN Nationality: FILIPINO
(Nominee Trading Participant) Trading Floor: AYALA 11/F, ExportBank Plaza Chino Roces Avenue Contact Information: (Nominee Trading Participant) Trading Floor: AYALA
Nationality: FILIPINO Status: ACTIVE cor. Sen. Gil Puyat Avenue, Makati City 10th Floor, Ortigas Building, Ortigas Avenue, Pasig City Nationality: FILIPINO Status: ACTIVE
Trading Floor: TEKTITE Contact Information: Office: 878-0775; 878-0790; Office: 631-2674; 631-2733 Trading Floor: AYALA Contact Information:
Status: ACTIVE 18/F, Citibank Tower 8741 Paseo de Roxas, Makati City 886-1801 to 04 Exchange: 634-5149 to 53 Status: ACTIVE 8/F, Tower One & Exchange Plaza
Contact Information: Office: 813-7344; 813-7454 Exchange: 848-5386; 848-5396 Fax: 631-2668 Contact Information: Ayala Avenue cor. Paseo de Roxas, Makati City
27/F, East Tower – PSE Centre Exchange: 891-9109; 891-9119 Fax: 886-1806 7/F, Tower One & Exchange Plaza Office: 848-7122 to 24
Exchange Road, Ortigas Center Pasig City Fax: 848-0105 contact@e-securities.com.ph G.D. TAN & COMPANY, INC. 288 Ayala Avenue cor. Paseo de Roxas, Makati City Exchange: 848-6413 to 15
Office: 635-5735 to 40 admin@dbpdaiwasmbc.com.ph (Corporate Trading Participant) Office: 891-9070 to 72 Fax: 848-7121
Exchange: 634-6976 to 80 EQUITIWORLD SECURITIES, INC. 153 GILBERT TAN Exchange: 891-9070 to 72
Fax: 634-6696 DEUTSCHE REGIS PARTNERS, INC. 209 (Corporate Trading Participant) (Nominee Trading Participant) Fax: 891-9353 JSG SECURITIES, INC. 169
(Corporate Trading Participant) ANTONIO A. LOPA Nationality: FILIPINO i.ackerman@eudoramail.com (Corporate Trading Participant)
CITISECONLINE.COM., INC. 203 EMMANUEL O. BAUTISTA (Nominee Trading Participant) Trading Floor: TEKTITE JORGE S. GO
(Corporate Trading Participant) (Nominee Trading Participant) Nationality: FILIPINO Status: ACTIVE I.B. GIMENEZ SECURITIES, INC. 180 (Nominee Trading Participant)
CONRADO F. BATE Nationality: FILIPINO Trading Floor: AYALA Contact Information: (Corporate Trading Participant) Nationality: FILIPINO
(Nominee Trading Participant) Trading Floor: AYALA Status: ACTIVE 22/F, East Tower – PSE Centre IGNACIO B. GIMENEZ Trading Floor: TEKTITE
Nationality: FILIPINO Status: ACTIVE Contact Information: Exchange Road, Ortigas Center, Pasig City (Nominee Trading Participant) Status: ACTIVE
Trading Floor: AYALA Contact Information: 8/F, Tower One & Exchange Plaza Office: 634-6255; 637-5686 Nationality: FILIPINO Contact Information:
Status: ACTIVE 23/F, Tower One & Exchange Plaza Ayala Avenue cor. Paseo de Roxas, Makati City Exchange: 634-6255; 634-5408; Trading Floor: TEKTITE 4/F, A & T Building, 244 Escolta Street, Binondo, Manila
Contact Information: Ayala Avenue cor. Paseo de Roxas, Makati City Office: 848-5401; 848-5403 to 06 634-6256 Status: ACTIVE Office: 241-0594; 242-9380;
2401B East Tower, PSE Centre, Office: Trunk line 894-6600 President/GM 848-5418 Telefax: 637-6256 Contact Information: 242-9385
Exchange Road, Ortigas Center, Pasig City Research 894-6636 to 47 Exchange: 891-9755 to 58 gdtaninc@yahoo.com No. 42 3/F New Rosario Ortigas Arcade, Exchange: 637-3159 to 61
Office: 636-5411 Sales 894-6651 to 58 Fax: 848-5423 Rosario Ortigas Extn., Pasig Fax: 242-9392
Fax: 634-6958; 645-4632 Operations 894-6618 to 35 eqworld_87@globelines.com.ph Office: 628-0000 local 306
Exchange: 891-9090 Exchange: 634-6260 to 61;
Fax: Sales 894-6605 634-6263 to 65; 634-5168
Research 894-6638 Fax: 642-7299
Operations 894-6622

The Philippine Stock Exchange, Inc. 2010 Annual Report 108 109 Charging to New Highs
KING’S POWER SECURITIES, INC. 389 MARIAN SECURITIES, INC. 201 PAN ASIA SECURITIES CORPORATION 218 PNB SECURITIES, INC. 224 REGINA CAPITAL DEVELOPMENT CORP. 235 SINCERE SECURITIES CORPORATION 129
(Corporate Trading Participant (Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant) MARITA A. LIMLINGAN (Corporate Trading Participant)
CARLOS J. CHING RICHARD L. LEE LUCIO K. TAN, JR. EUGENE S. ACEVEDO (Natural Person Trading Participant) JOHN KENNETH L. OCAMPO
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant) Nationality: FILIPINO (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO Trading Floor: AYALA Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA Trading Floor: AYALA Trading Floor: AYALA Status: ACTIVE Trading Floor: TEKTITE
Status: ACTIVE Status: ACTIVE Status: ACTIVE Status: ACTIVE Contact Information: Status: ACTIVE
Contact Information: Contact Information: Contact Information: Contact Information: 8/F, Tower One & Exchange Plaza Contact Information:
Room 1602, Federal Tower Unit B 26th Flr., Export Bank Plaza, 9/F, Tower One & Exchange Plaza 3/F, PNB Financial Center Roxas Boulevard, Pasay City Ayala Avenue cor. Paseo de Roxas, Makati City 12/F, East Tower – PSE Centre
Dasmariñas Street, Binondo, Manila Chino Roces Avenue corner Gil Puyat Avenue, Makati City Ayala Avenue cor. Paseo de Roxas, Makati City Office: 526-3510; 526-3678; Office: 848-5482 to 84 Exchange Road, Ortigas Center Pasig City
Office: 242-3048 to 49 Office: 887-9067 to 68 Office: 848-5153 to 54 832-5461 / Dealing 526-3478 Exchange: 891-9413; Office: 638-3549 to 50
Exchange: 848-5605 to 07 Exchange: 891-9309; 891-9316 Exchange: 891-9170 to 74 Exchange: 891-9841; 891-9846; 891-9415 to 17 Exchange: 634-6664; 634-6668
Fax: 241-1417 Fax: 814-0502 Fax: 848-5154 891-9849 Fax: 848-5482 to 84 Fax: 638-3549
kings 389@yahoo.com.ph panasec@edsamail.com.ph Fax: 526-3477 rcdc@reginacapital.com
MDR SECURITIES, INC. 208 SOLAR SECURITIES, INC. 286
LARRGO SECURITIES COMPANY, INC. 193 (Corporate Trading Participant) PAPA SECURITIES CORPORATION 219 PREMIUM SECURITIES, INC. 225 RTG & COMPANY, INC. 239 (Corporate Trading Participant)
(Natural Person Trading Participant) MANUEL D. RECTO (Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant) JOHNNY S. YAP
Nationality: FILIPINO (Nominee Trading Participant) MYRON TIMOTHY P. PAPA ANTONIO Y. TEE RAMON T. GARCIA (Nominee Trading Participant)
Trading Floor: AYALA Nationality: FILIPINO (Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant) Nationality: FILIPINO
Status: ACTIVE Trading Floor: AYALA Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO Trading Floor: TEKTITE
Contact Information: Status: ACTIVE Trading Floor: AYALA Trading Floor: AYALA Trading Floor: AYALA Status: ACTIVE
2/F, Rufino Tower Building Contact Information: Status: ACTIVE Status: ACTIVE Status: ACTIVE Contact Information:
6784 Ayala Avenue, Makati City 6th Floor, Unit 617AIC-Burgundy Empire Tower, ADB Avenue Contact Information: Contact Information: Contact Information: 30/F, East Tower – PSE Centre
Office: 810-1183; 810-1353 to 54 corner Garnet & Sapphire Roads, 6/F, S & L Building De la Rosa cor. Esteban Streets, 14/F, Tower One & Exchange Plaza 6/F, Tower One & Exchange Plaza Exchange Road, Ortigas Center Pasig City
810-1440 & 46 Ortigas Center, Pasig City Legaspi Village, Makati City Ayala Avenue cor. Paseo de Roxas, Makati City Ayala Avenue cor. Paseo de Roxas, Makati City Office: Trunk line 636-6302
Exchange: 891-9530 to 33 Office: 706-2131; 706-2169 Office: 817-8433 & 79; 817-8454; Office: 848-5915 to 17 Office: 891-9480 to 84 Direct lines 634-6651; 634-6653
Fax: 817-2486 Exchange: 891-9226 to 28 815-1308 Exchange: 891-9593 to 95 Exchange: 891-9480 to 84 Exchange: 636-6302; 634-6869;
Mobile: 0922-8814788; 0922-8823137; Exchange: 891-9630 to 32 Telefax: 848-5917 Fax: 891-9483 634-6878
LITONJUA SECURITIES, INC. 195 0922-8823136 Fax: 815-1308 Fax: 635-2466
(Corporate Trading Participant) mcpapa@pacific.net.ph QUALITY INVESTMENT & SECURITIES CORP. 230 S. J. ROXAS & COMPANY, INC. 240 solar_sec_inc@yahoo.com
EDUARDO V. LITONJUA JR. MERCANTILE SECURITIES. CORP. 205 (Corporate Trading Participant) (Corporate Trading Participant)
(Nominee Trading Participant) (Corporate Trading Participant) PCCI SECURITIES BROKERS CORP. 282 BENJAMIN Y. CU SIMPLICIO J. ROXAS STANDARD SECURITIES CORPORATION 247
Nationality: FILIPINO ASTRID MELODY LIM (Corporate Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant) DOMINGO HERRERA
Trading Floor: TEKTITE (Nominee Trading Participant) FEDERICO C. GALANG Nationality: FILIPINO Nationality: FILIPINO (Natural Person Trading Participant)
Status: ACTIVE Nationality: FILIPINO (Nominee Trading Participant) Trading Floor: AYALA Trading Floor: AYALA Nationality: FILIPINO
Contact Information: Trading Floor: AYALA Nationality: FILIPINO Status: ACTIVE Status: ACTIVE Trading Floor: AYALA
Room 205 DITZ Building Status: ACTIVE Trading Floor: AYALA Contact Information: Contact Information: Status: ACTIVE
444 T. M. Kalaw Street, Manila Contact Information: Status: ACTIVE Unit 1602 Tytana Plaza 6/F, Tower One & Exchange Plaza Contact Information:
Office: 521-1951 to 57 3/F Goodwill Building 393 Sen. Gil Puyat Avenue, Contact Information: Plaza Lorenzo Ruiz, Binondo, Manila Ayala Avenue cor. Paseo de Roxas, Makati City 34 Jefferson Street, West Greenhills, San Juan, M. Mla.
Exchange: 634-7178; 634-5713 Makati City 4/F, PCCI Corporate Center Office: 241-0072; 241-0486; Office: 848-5065 to 69 Office: 725-3905; 721-5887
Fax: 521-7692 Office: 898-2984; 890-7336; 118 L. P. Leviste Street, Salcedo Village, Makati City 241-0547 Exchange: 891-9708 to 09; Exchange: 891-9760 to 61;
890-6792; 890-1939 Office: 893-3920; 893-3923 to 24; Exchange: 891-9184 to 89 891-9714 to 16; 891-9439 891-9764 to 65
LOPEZ, LOCSIN, LEDESMA & COMPANY, INC. 197 Exchange: 891-9350 to 58 893-4341 Fax: 241-0166 Fax: 891-9447 Fax: 721-5887
(Corporate Trading Participant) 891-9350; 856-2880 Exchange: 891-9952 to 55; qualsec@pldtdsl.net sjroxas@ymail.com
DIONISIO LOPEZ Fax: 895-2376 848-6284 to 85; 840-2991 STRATEGIC EQUITIES CORPORATION 192
(Nominee Trading Participant) Fax: 893-4340 R & L INVESTMENTS, INC. 231 SALISBURY BKT SECURITIES CORPORATION 229 (Corporate Trading Participant)
Nationality: FILIPINO MERIDIAN SECURITIES, INC. 206 pcci.sbc@eastern.com.ph (Corporate Trading Participant) (Corporate Trading Participant) ROBERTO Z. LORAYES
Trading Floor: AYALA (Corporate Trading Participant) RENE R. LEE (NO NOMINEE TRADING PARTICIPANT) (Nominee Trading Participant)
Status: ACTIVE RONALDO S. SALONGA PCIB SECURITIES, INC. 131 (Nominee Trading Participant) Nationality: FILIPINO Nationality: FILIPINO
Contact Information: (Nominee Trading Participant) (Corporate Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Trading Floor: AYALA
Roofdeck, Urban Building 405 Sen. Gil Puyat Avenue Nationality: FILIPINO GABRIEL U. LIM Trading Floor: AYALA Status: ACTIVE Status: ACTIVE
(nr. MRT) EDSA, Makati City Trading Floor: TEKTITE (Nominee Trading Participant) Status: ACTIVE Contact Information: Contact Information:
Office: 895-0624; 895-7310 Status: ACTIVE Nationality: FILIPINO Contact Information: Executive Office: 6/F, Tower One & Exchange Plaza
Exchange: 891-9640 to 41 Contact Information: Trading Floor: AYALA 675 Lee Street, Mandaluyong City 12/F, Tower One & Exchange Plaza Ayala Avenue cor. Paseo de Roxas, Makati City
Fax: 896-0835 27/F, East Tower – PSE Centre Status: ACTIVE Office: 724-5207 Ayala Avenue cor. Paseo de Roxas, Makati City Office: 848-5159
Exchange Road, Ortigas Center, Pasig City Contact Information: Exchange: 891-9201 to 05 Backroom Office: Exchange: 891-9620 to 21
LUCKY SECURITIES, INC. 198 Office: 635-6261 to 64 20th Floor, BDO South Tower, Fax: 724-7210 11/F, Tower One & Exchange Plaza Fax: 848-5164
(Corporate Trading Participant) Exchange: 634-6931 to 36 Makati Ave. cor. H. V. dela Costa St., Makati City Ayala Avenue cor. Paseo de Roxas, Makati City Email: sec@pldtdsl.net
EDDIE T. GOBING Fax: 634-6937 Office: Dealing Room 878-4556; R. COYIUTO SECURITIES, INC. 233 Office: 848-7373 to 76
(Nominee Trading Participant) meridiansec@yahoo.com 878-4558; 878-4562 to 63 (Corporate Trading Participant) Exchange: 891-9490 to 92 SUMMIT SECURITIES, INC. 246
Nationality: FILIPINO Operations 878-4559 to 60 ROBERT COYIUTO JR. Fax: 848-7375 (Corporate Trading Participant)
Trading Floor: TEKTITE MOUNT PEAK SECURITIES, INC. 210 Compliance 878-4564 (Nominee Trading Participant) admin@publicsecuritiescorp.com HARRY G. LIU
Status: ACTIVE (Corporate Trading Participant) Exchange: 891-9008 to 09; Nationality: FILIPINO (Nominee Trading Participant)
Contact Information: WILLIAM GAWECO 891-9045 Trading Floor: TEKTITE SARANGANI SECURITIES, INC. 113 Nationality: FILIPINO
19/F, West Tower – PSE Centre (Nominee Trading Participant) Fax: 840-7175 Status: ACTIVE (Corporate Trading Participant) Trading Floor: TEKTITE
Exchange Road, Ortigas Center, Pasig City Nationality: FILIPINO nilo.sampayo@equitablepcib.com Contact Information: ARTHUR W. ANTONINO Status: ACTIVE
Office: 634-6826; 634-6786; Trading Floor: AYALA carol.santana@equitablepcib.com 5/F, Corinthian Plaza, (Nominee Trading Participant) Contact Information:
634-6747 & 60 Status: ACTIVE Paseo de Roxas, Legaspi Village, Makati City Nationality: FILIPINO 21/F, East Tower – PSE Centre
Exchange: 634-5382 to 83; 634-5411; 634-5707 Contact Information: PHILIPPINE EQUITY PARTNERS, INC. 338 Office: 811-3064 to 67; 811-3201 Trading Floor: AYALA Exchange Road, Ortigas Center Pasig City
Fax: 634-6826 748 C. K. Building, Juan Luna St., Binondo, Manila (Corporate Trading Participant) Exchange: 634-6203 to 07; Status: ACTIVE Office: 631-1032 to 37
Office: 241-7990 & 92; 241-8043; JOSEPH R. MADRID 634-5035; 634-6697 & 69 Contact Information: Exchange: 631-1032 to 37
243-1953 (Nominee Trading Participant) Fax: 811-3073 Unit 2 D1 Vernida I Condominium, Fax: 631-1033
LUY’S SECURITIES COMPANY, INC. 199 Exchange: 891-9601 to 03 Nationality: FILIPINO rcoyiutosec@hotmail.com 120 Amorsolo Street, Legaspi Village, Makati City
ENRIQUE LUY, SR. Fax: 241-8042 Trading Floor: AYALA Office: 817-5806; 840-4504; SUNSECURITIES, INC. 368
(Natural Person Trading Participant) Info@mountpeak.com Status: ACTIVE R. NUBLA SECURITIES, INC. 236 817-5834 (Corporate Trading Participant)
Nationality: FILIPINO www.mountpeak.com Contact Information: RALPH NUBLA JR. Exchange: 891-9176 to 79 JERRY G. YU
Trading Floor: TEKTITE Unit 19C, Citibank Tower (Natural Person Trading Participant) Fax: 817-5815 (Nominee Trading Participant)
Status: ACTIVE NEW WORLD SECURITIES, INC. 211 Citibank Plaza 8741 Paseo de Roxas, Makati City Nationality: FILIPINO sarangani95@yahoo.com Nationality: FILIPINO
Contact Information: (Corporate Trading Participant) Office: 814-5700 Trading Floor: TEKTITE Trading Floor: AYALA
28/F, LKG Tower 6801 Ayala Avenue, Makati City JOAN CHAI CHU Exchange: 891-9162; 891-9222; Status: ACTIVE SB EQUITIES, INC. 115 Status: ACTIVE
Office: 884-1271 to 85 (Nominee Trading Participant) 891-9097 Contact Information: (Corporate Trading Participant) Contact Information:
Exchange: 634-5175 to 76; Nationality: FILIPINO Fax: 814-5793 to 94 Room 300, CNC Investment Bldg. REMY TIGULO 2703 One Corporate Center Meralco Avenue
634-6523 to 24; 634-6850 to 51 Trading Floor: TEKTITE 231 Juan Luna Street, Binondo, Manila (Nominee Trading Participant) cor. Julia Vargas Avenue, Pasig City
Fax: 884-1384 Status: ACTIVE PHIL-PROGRESS SECURITIES CORPORATION 276 Office: 242-1595 to 96; 242-1770 Nationality: FILIPINO Office: 477-6001 to 6005
Contact Information: (Corporate Trading Participant) Exchange: 634-6525 to 29 Trading Floor: AYALA Fax: 621-1018
MACQUARIE CAPITAL Room 202 CNC Investment Bldg. ENRIQUE RAYMOND I. YAP Fax: 242-1666 Status: ACTIVE sunsecuritiesinc@gmail.com
SECURITIES (PHILIPPINES), INC. 121 231 Juan Luna St., Binondo, Manila (Nominee Trading Participant) Contact Information:
(Corporate Trading Participant) Office: 242-1759; 242-1767 Nationality: FILIPINO 18/F, Security Bank Centre SUPREME STOCKBROKER, INC. 249
PAULO C. ROJAS Exchange: 634-5711 to 12; Trading Floor: AYALA R. S. LIM & COMPANY, INC. 238 6776 Ayala Avenue, Makati City (Corporate Trading Participant)
(Nominee Trading Participant) 634-5721 Status: ACTIVE (Corporate Trading Participant) Office: President 891-1092 EDUARDO C. ARROYO JR.
Nationality: CAYMAN ISLANDS Fax: 242-1743 Contact Information: ALEJANDRO T. YU Manager 891-1116 (Nominee Trading Participant)
Trading Floor: AYALA jameschu@info.com.ph G/F, PPL Building, U. N. Avenue (Nominee Trading Participant) Dealing 891-1243/57/58/78 Nationality: FILIPINO
Status: ACTIVE cor. San Marcelino Street, Manila Nationality: FILIPINO Accounting 813-3441 Trading Floor: AYALA
Contact Information: NIEVES SANCHEZ, INC. 213 Office: 526-4207; 526-4208 &10 Trading Floor: AYALA Settlement 891-1031 or 37 Status: ACTIVE
22nd Floor 6750 Ayala Avenue Bldg., (Corporate Trading Participant) Exchange: 891-8579 to 80 Status: ACTIVE Dealing 891-1021 Contact Information:
Ayala Avenue, Makati City TERESITA P. PACHECO Fax: 526-4208 Contact Information: Exchange: 891-9677; 10/F, Tower One & Exchange Plaza
Office: 857-0888; 857-0834 (Nominee Trading Participant) 1509 Galvani Street, Makati City 891-9686 to 87 Ayala Avenue cor. Paseo de Roxas, Makati City
Fax: 857-0910; 857-0912 Nationality: FILIPINO PLATINUM SECURITIES, INC. 223 Office: 843-4313; 844-7235; Fax: 813-3349 Office: 891-9405 to 07
cynthia.severino@asia.ing.com Trading Floor: AYALA (Corporate Trading Participant) 844-2245 SBEquities@securitybank.com.ph Exchange: 891-9401; 891-9403
Status: ACTIVE WILLIAM O. GO Exchange: 891-9660 to 66 Fax: 891-9405
MANDARIN SECURITIES CORPORATION 200 Contact Information: (Nominee Trading Participant) Fax: 844-2245 SECURITIES SPECIALISTS, INC. 242
(Corporate Trading Participant) Unit 2502, 25th Floor The Orient Square Bldg., Nationality: FILIPINO rslim@i-manila.com.ph (Corporate Trading Participant) TANSENGCO & COMPANY, INC. 251
CHARLES H. SHIH F. Ortigas Commercial Complex, Pasig City Trading Floor: AYALA FRANCISCO V. CANCIO (Corporate Trading Participant)
(Nominee Trading Participant) Office: 477-7888; 477-8899 Status: ACTIVE RCBC SECURITIES, INC. 217 (Nominee Trading Participant) FRANCISCO O. TANSENGCO
Nationality: FILIPINO Exchange: 891-9306 to 08 Contact Information: (Corporate Trading Participant) Nationality: FILIPINO (Nominee Trading Participant)
Trading Floor: TEKTITE Fax: 477-7888 8/F, Antel 2000 Corporate Center RAUL M. LEOPANDO Trading Floor: AYALA Nationality: FILIPINO
Status: ACTIVE 121 Valero St., Salcedo Vill., Makati (Nominee Trading Participant) Status: ACTIVE Trading Floor: TEKTITE
Contact Information: OPTIMUM SECURITIES CORPORATION 215 Office: 887-1178 to 79 Nationality: FILIPINO Contact Information: Status: ACTIVE
28/F, LKG Tower (Corporate Trading Participant) Exchange: 891-9301 to 03 Trading Floor: AYALA Rm. 903 National Life Insurance Bldg., Contact Information:
6801 Ayala Avenue, Makati City EDDIE S. JOSE Telefax: 887-1178 Status: ACTIVE Ayala Avenue, Makati City Room 2308 World Trade Exchange Bldg.
Office: 884-1271 to 85 (Nominee Trading Participant) Contact Information: Office: 812-5905 215 Juan Luna Street Binondo, Manila
Exchange: 634-6517 to 20 Nationality: FILIPINO 7/F Yuchengco Tower, RCBC Plaza Exchange: 891-9701 to 03 Office: 241-7155
Fax: 884-1384 Trading Floor: AYALA 6819 Ayala Avenue, Makati City Fax: 813-1682 Exchange: 634-6675 & 85;
Status: ACTIVE Office: Trunk line 889-6931 to 35 securities.specialists@gmail.com 633-1310; 634-8230
Contact Information: Exchange: 845-2641 Fax: 241-7155
No. 11 E. O. Building cor. United & 2nd Streets, Fax: 889-7642
Bo. Kapitolyo, Pasig City www.rcbcsec.com
Office: 631-7831 to 36; 631-3989; sales@rcbcsec.com
633-2629
Exchange: 891-9581 to 85
Fax/Telefax: 631-8834 / 633-2629

The Philippine Stock Exchange, Inc. 2010 Annual Report 110 111 Charging to New Highs
THE FIRST RESOURCES MANAGEMENT UNICAPITAL SECURITIES, INC. 345 WEALTH SECURITIES, INC. 269
& SECURITIES CORPORATION 252 (Corporate Trading Participant) (Corporate Trading Participant)
MA. VIVIAN YUCHENGCO LEONARDO R. ARGUELLES HOSANNA T. AYSON
(Natural Person Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA Trading Floor: TEKTITE
Status: ACTIVE Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information: Contact Information:
8/F, Tower One & Exchange Plaza 4/F, Majalco Building 21/F, East Tower – PSE Centre
Ayala Avenue cor. Paseo de Roxas, Makati City Trasierra cor. Benavidez Streets, Exchange Road, Ortigas Center Pasig City
Office: 848-6311 to 18 Legaspi Village, Makati City Office: 634-5038 to 42;
Exchange: 848-6311 to 18 Office: Dealing/Sales 812-2589 637-3048 to 50
Fax: 848-6272 Operations/Dealing/Sales 892-0991 Exchange: 634-6222;
1stres@philwebinc.com Exchange: 891-9622; 891-9624 634-6225 to 29
Fax: 818-2127 Fax: 634-5043
TOWER SECURITIES, INC. 253 mail@unicapsec.com info@wealthsecuritiesinc.com
(Corporate Trading Participant)
RAYMOND PETER L. UNLAY UOB-KAY HIAN SECURITIES (PHILIPPINES), INC. 260 WESTLINK GLOBAL EQUITIES, INC. 270
(Nominee Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
Nationality: FILIPINO TAN CHEK TECK RAFAEL O. MUÑOZ
Trading Floor: TEKTITE (Nominee Trading Participant) (Nominee Trading Participant)
Status: ACTIVE Nationality: SINGAPOREAN Nationality: FILIPINO
Contact Information: Trading Floor: AYALA Trading Floor: AYALA
18/F, East Tower – PSE Centre Status: ACTIVE Status: ACTIVE
Exchange Road, Ortigas Center Pasig City Contact Information: Contact Information:
Office: 635-4448 to 49; 635-4144; Unit 404 Locsin Building 6/F, Tower One & Exchange Plaza
634-6726 Ayala cor. Makati Avenue, Makati City Ayala Avenue cor. Paseo de Roxas, Makati City
Exchange: 634-5146; 634-5148;
638-3847; 638-3850; 633-9411
Office:
Exchange:
887-7972
891-9526 to 27
Office: Trunkline: 848-6231 to 33
Operations Dept.: 759-4012
CORPORATE INFORMATION
Fax: 635-4145 Fax: 887-7973 Exchange & Marketing: 891-9380 & 82
tower_sec@yahoo.com milasanjose@uobkayhian.com Fax: 848-6229
wgeirsc@yahoo.com
TRANS-ASIA SECURITIES, INC. 254 UPCC SECURITIES CORPORATION 100 wgei_operation@yahoo.com The Annual Stockholders’ Meeting of The
(Corporate Trading Participant)
EUGENE ONG
(Corporate Trading Participant)
WILLIAM C. UY WONG SECURITIES CORPORATION 273
Philippine Stock Exchange, Inc. will be held on
(Nominee Trading Participant) (Nominee Trading Participant) (Corporate Trading Participant) Saturday, 14 May 2011, 8:00 a.m. at the Pavilion
Nationality: FILIPINO Nationality: FILIPINO EDEN WONG
Trading Floor: TEKTITE Trading Floor: AYALA (Nominee Trading Participant) A&B J. William Shaw, Wack Wack Golf and
Status: ACTIVE Status: ACTIVE Nationality: FILIPINO
Contact Information: Contact Information: Trading Floor: TEKTITE Country Club, Wack Wack Road, Shaw Boulevard,
Room 601-S State Centre Building
333 Juan Luna Street, Binondo, Manila
12/F Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas, Makati City
Status:
Contact Information:
ACTIVE Mandaluyong City.
Office: 242-2823; 242-3031; Office & Exchange: 891-8512; 960 Ideal Street, Mandaluyong City
242-1031 891-8514; 891-8519 Office: 727-6317
Exchange: 634-5725 to 27;
634-5752 to 54
Fax:
upcc_mla@i-manila.com
892-0215 Exchange:
Telefax:
634-5735 to 36
718-0887 Corporate Offices:
Fax: 242-3031 wongsecuritiesonline@yahoo.com
VALUE QUEST SECURITIES CORPORATION 190
TRI-STATE SECURITIES, INC.
(Corporate Trading Participant)
257 (Corporate Trading Participant)
GLENN PAUL R. GARCIA
YAO & ZIALCITA, INC.
CARMELITA C. YAO
275 Principal Office
GREGORIO T. CHAN (Nominee Trading Participant) (Natural Person Trading Participant) Philippine Stock Exchange Plaza
(Nominee Trading Participant) Nationality: FILIPINO Nationality: AMERICAN
Nationality: FILIPINO Trading Floor: TEKTITE Trading Floor: TEKTITE Ayala Triangle, Ayala Avenue, Makati City
Trading Floor: AYALA Status: ACTIVE Status: ACTIVE
Status: ACTIVE Contact Information: Contact Information: 1226 Philippines
Contact Information: 1006B West Tower, PSE Centre, 5H Vernida I Condominium 120 Amorsolo Street,
10/F, Tower One & Exchange Plaza Exchange Road, Ortigas Center, Pasig City Legaspi Village, Makati City Tel. No.: (632) 819-4100
Ayala Avenue cor. Paseo de Roxas, Makati City Office: 636-6684; 636-6686 Office: 813-3496; 892-5936;
Office: 848-5044 to 47 Fax: 687-0584 894-0553 to 55 Fax No.: (632) 891-9004/ (632) 864-9046
Exchange: 891-9361 to 64 valuequestsecurities@gmail.com Exchange: 634-6284; 634-6286;
Fax: 848-5047 634-6946

TRITON SECURITIES CORPORATION 136

VENTURE SECURITIES, INC.
EUSEBIO TANCO
263 Fax:
yaozial@boostunlimited.net
813-3496; 818-6739 Philippine Stock Exchange Centre
(Corporate Trading Participant) (Natural Person Trading Participant) Exchange Road, Ortigas Centre, Pasig City
EDWIN L. LUY Nationality: FILIPINO
(Nominee Trading Participant) Trading Floor: AYALA YU & COMPANY, INC. 278 1605 Philippines
Nationality: FILIPINO Status: ACTIVE (Corporate Trading Participant)
Trading Floor: TEKTITE Contact Information: JOHNNY YU Tel. No.: (632) 688-7600
Status: ACTIVE 7th Floor, Phil. First Building (Nominee Trading Participant)
Contact Information: 6764 Ayala Avenue, Makati City Nationality: FILIPINO Website: www.pse.com.ph
26/F, LKG Tower 6801 Ayala Avenue, Makati City Office: 848-6505; 887-8447 Trading Floor: TEKTITE
Office: 884-2081 to 83 Local nos. 7011/7012/7016 Status: ACTIVE
Exchange: 635-5531 to 35 Exchange: 891-9420 to 22 Contact Information:
Fax: 884-2088 Telefax: 848-6503 16/F, East Tower – PSE Centre
tsc136@yahoo.com Exchange Road, Ortigas Center Pasig City
VICSAL SECURITIES & STOCK BROKERAGE, INC.
(Corporate Trading Participant)
266 Office:
Exchange:
634-6611 & 18; 634-7577
634-6248 to 50
External Counsels External Auditor
UBS SECURITIES PHILIPPINES INC. 333 FRANK SY GAISANO Fax: 634-5918 Angara Abello Concepcion Regala & Cruz Law Offices
(Corporate Trading Participant) (Nominee Trading Participant) yunc@sfi.com.ph
ROBRINA L. GO Nationality: FILIPINO 22nd floor, ACCRALAW Tower
(Nominee Trading Participant) Trading Floor: AYALA SyCip Gorres Velayo & Co.
Nationality: SWISS Status: ACTIVE Second Avenue corner 30th street
Trading Floor: AYALA Contact Information: SGV Building
Status: ACTIVE Unit 1009-1011, Tower One & Exchange Plaza, Crescent Park West
Contact Information: Ayala Triangle, Ayala Avenue, Makati City 6760 Ayala Avenue
19/F, Tower One & Exchange Plaza Office: 856-3923 Bonifacio Global City, 0399 Taguig City
Ayala Avenue cor. Paseo de Roxas, Makati City Exchange: 891-9710 to 13
Makati City, Philippines
Office: Trunk Line 784-8888 Fax: 856-3922
Sales 784-8864
Operations 784-8813
Vssb_sec2005@yahoo.com. D.P. Arce Law Office Stock Transfer Agent
Compliance 784-8807 VSEC.COM,INC. 135 Unit 612, 6/F, Tower 1, Cityland Condominium 10
Exchange: 891-8588; 891-8589 (Corporate Trading Participant)
Fax: General 784-8899 SENEN L. MATOTO 6815 Ayala Avenue, Makati City Rizal Commercial Banking Corp.
Equities 848-2382 (Nominee Trading Participant)
Logistics 784-8810 Nationality: FILIPINO Stock Transfer Department
Robby.Go@ubs.com Trading Floor: AYALA
Tet.Achacon-Espallardo@ubs.com Status: ACTIVE Quasha Ancheta Peña & Nolasco G/F West Wing, 211 Grepalife Building
Contact Information:
UCPB SECURITIES, INC. 259 Unit 1009-1011, Tower One & Exchange Plaza, Don Pablo Building, 114 Amorsolo Street Sen. Gil Puyat Ave., Makati City
(Corporate Trading Participant) Ayala Triangle, Ayala Avenue, Makati City 1229 Makati City
VINCENT K. DE LEON Office: 856-5801 to 03
(Nominee Trading Participant) Exchange:
Nationality: FILIPINO Fax: 856-3922
Trading Floor:
Status:
AYALA
ACTIVE
Rodrigo Berenguer & Guno For inquiries, please contact:
Contact Information: Suite 1517, 15th Floor, AIC Burgundy Empire Tower
5/F, UCPB Building Makati Avenue, Makati City
Office: 811-9000 ADB Avenue corners Garnet and Sapphire Roads Public and Investor Relations Section
Office of the President loc. 9545

TanQ Media + Jun Barrameda

Compliance Officer loc. 9793 Ortigas Center, Pasig City Tel. No.: (632) 688-7600
Securities Settlement loc. 9972
Accounting loc. 9970 & 9973 E-mail : pirs@pse.com.ph
Exchange:
Fax:
891-9735 to 37
811-9792
Tan Venturanza Valdez
sccastronuevo@ucpb.com – Compliance 2704 East Tower, Philippine Stock Exchange Centre Social sites:
hbbongon@ucpb.com – Accounting
Exchange Road, Ortigas Center, Pasig City http://twitter.com/PhilStockExchange
http://thephilstockexchange.multiply.com
Zamora Poblador Vasquez & Bretaña Law Offices
5th Floor, Montepino Building Track us on Facebook through
138 Amorsolo St., Legaspi Village, Makati City The Philippine Stock Exchange, Inc.
The Philippine Stock Exchange, Inc. 2010 Annual Report 112
The Philippine Stock Exchange, Inc.
www.pse.com.ph
Public and Investor Relations Section
Tel No. (632) 6887600
email: pirs@pse.com.ph