CONQUERING

FORMIDABLE
FRONTIERS THE PHILIPPINE STOCK EXCHANGE, INC.
2011 ANNUAL REPORT

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 02 Chairman's Message

04 President's Message

06 Stock Market Performance

10 Operational Highlights
The LEVEL UP Agenda

L E V E L

U P

48 PSE Board of Directors & Officers

50 Executive Officers

51 Department & Section Heads, Officers-in-Charge

52 SCCP Board of Directors & Officers

53 CMIC Board of Directors & Officers

54 Information Required by the Securities Regulation Code

56 Report of the Market Integrity Board

57 Report of the Corporate Governance CommitteE

58 Report of the Audit Committee

59 Statement of Management's Responsibility for Financial Statements

Financial Statements
60 Balance Sheets / Statements of Comprehensive Income / Statements of Changes in Equity
Statements of Cash Flows / Notes to the Financial Statements

100 Listed Issues as of Yearend 2011

103 List of Active Trading Participants

 01 Financial Highlights
The Philippine Stock Exchange, Inc. and Subsidiaries

Change
(in thousand pesos) 2011 2010 Amount %

RESULTS OF OPERATIONS:
OPERATING REVENUES 900,764 822,452 78,312 9.52
Listing Fees, Maintenance & Processing Fees 429,289 401,887 27,402 6.82
Trading fees 202,856 176,029 26,827 15.24
Service Fees 254,034 215,604 38,430 17.82
Others 14,584 28,931 (14,347) (49.59)

TOTAL EXPENSES 440,593 407,195 33,398 8.20
COST OF SERVICES 167,795 130,727 37,068 28.36
GENERAL AND ADMINISTRATIVE EXPENSES 272,798 276,468 (3,670) (1.33)

OTHER INCOME 69,187 115,571 (46,384) (40.13)

INCOME BEFORE INCOME TAX 559,422 557,410 2,012 0.36

NET INCOME AFTER TAX 406,192 417,497 (11,305) (2.71)

YEAR-END FINANCIAL CONDITION:

TOTAL ASSETS 2,285,611 2,282,358 3,253 0.14
Cash and cash equivalents 1,041,644 389,145 652,499 167.67
Financial assets at fair value through profit or loss 207,882 - 207,882
Short-term Available-for-Sale Investments 42,343 837,844 (795,501) (94.95)
Long-term Available-for-Sale Investments 167,407 126,783 40,624 32.04
Property and Equipment 520,109 570,317 (50,208) (8.80)

TOTAL LIABILITIES 235,538 261,268 (25,730) (9.85)
Current Liabilities 228,325 255,235 (26,909) (10.54)
Retirement liabilities 7,212 6,033 1,179 19.55

EQUITY 2,050,073 2,021,090 28,983 1.43

“Conquering Formidable Frontiers” captures the direction of the year’s market highlights as the Philippine Stock Exchange (PSE) stayed on course
in implementing significant reforms. The PSE managed to scale record grounds in 2011 amidst the volatilities in the global markets. The hot air
balloon represents the flight of the Exchange across a vast area exposed to sometimes unpredictable environment while employing a multi-pronged
approach in increasing liquidity and market depth and enhancing corporate governance. The Board and Management are likened to pilots, carefully
steering the direction of the PSE to scale and explore new territories towards its vision of becoming a premier exchange.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 he year 2011 may have
been a tempestuous year
for global financial markets,
but it was also a year of
landmark developments for
the Philippine Stock Exchange (PSE).

For the early part, global markets stood

on shaky ground as rising inflation fanned
uncertainties of a global economic recovery. This
sentiment was further compounded by political
unrest in Egypt and the Middle East which
hoisted oil prices significantly. Adding to the
anxiety was China’s move to raise interest rates
in the early part of the year. Market gains were
also tempered as investors feared a meltdown
of global economic juggernauts in Europe as
well as the United States due to debt problems.
In the Philippines, economic growth slipped
to 3.7 percent in 2011, a sharp drop from
the record 7.6 percent growth in 2010 due
to the government’s limited spending on
infrastructure, and declining export performance
which was mainly affected by a slowdown in
various economies overseas. The global turmoil
also prodded the World Bank to downgrade
its growth forecast for the Philippines in 2011
and 2012 to 3.7 percent and 4.2 percent from
4.2 percent and 4.8 percent, respectively. The
weakness in economic growth was reflected
in corporate earnings as the combined net
incomes of listed firms in the first nine
months of 2011 contracted by 10.1 percent

2 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers

Chairman's Message
to P308.86 billion, from P343.59 billion in the
same period last year led by lower net profits
of the Industrial, Services and Holding Firms
Sectors. These sectors were adversely affected
by the global turmoil that jacked up fuel prices
and caused sharp fluctuations in foreign
exchange rates. On the other hand, the increase
in consumption spending brought about by
strong inward remittances continued to boost
certain sectors, particularly the financial and
property sectors which led the growth in the
consolidated revenues of listed firms for the
nine-month period.
The resilience of our listed companies amid
a very challenging external environment has
mirrored investor confidence in the PSE index
which continued to be a top performer in
Asia in 2011. The local stock market’s strong
performance in 2011 was also a testament
to the strategies and initiatives your Board
of Directors undertook in 2011.
Trading activity remained robust with initial
public offerings hitting new levels. Capital
raised at the Philippine stock market reached
a new record at P107.50 billion in 2011, the
highest total amount raised in a single year.
This figure is 26.6 percent higher than the
amount raised in 2010 and breaches by 19.3
percent the previous record posted in 2007.
Total value turnover for 2011 registered a new
record high for the Exchange as it reached
P1.42 trillion, 17.8 percent higher than the P1.21
billion registered in 2010. The market’s strong
performance was also an offshoot of company
initiatives to boost market liquidity. Your
Board of Directors moved to expand trading
hours until 1:00 PM last October, a prelude to
the extension of trading hours to 3:30 PM on
January 2, 2012 to give our investors locally
and worldwide more options and flexibilities
when trading in our market. This direction
is further enhanced by the implementation
of PSEtrade, the PSE’s new trading system
developed by the NYSE Technologies Inc.
launched in 2010, which expanded the
capabilities for trading among our trading
participants.
Merger and acquisition deals, resilient
corporate earnings, record low interest rates
and credit rating upgrades were also the
overtures for the new market highs that
were set in 2011. International credit-rating
agency Fitch Ratings upgraded the Philippines’
long-term foreign currency bond rating in the
first semester, after similar credit upgrades
by Standard & Poor’s and Moody’s Investors
Service. As part of its anti-corruption drive,
the government managed to bring down the
fiscal deficit to P197.75 billion in 2011, well
below the full-year P300 billion program.
The PSE index (PSEi) broke fresh highs
in 2011 for a total of seven (7) times.
Wealth generated in the stock market also
rose significantly as the combined market
capitalization of listed domestic issues in the
PSE at yearend was P7.24 trillion, 5.0 percent
higher than the previous year. Foreign investors
also went into net buying territory in 2011 in
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
“The measures we have
implemented in 2011 have
focused on boosting market
liquidity and enhancing
investor confidence . These
initiatives have allowed
the Exchange to conquer
formidable frontiers and
to set the tone for higher
growth in 2012.
the amount of P56.52 billion, higher than the
net buying figure of P35.62 billlion in 2010
and the highest level achieved since 2006.
In keeping with our thrust to elevate our
standards with best practices and provide
investors a better gauge on the performance
of the market, the PSE updated its policy on
managing the PSE index series. The revision was
done to enhance the quality of the PSE’s indices,
reflect corporate actions in a timely manner, as
well as raise index standards to international
best practices.
The PSE also enhanced its listing and
disclosure requirements for petroleum and
renewable energy companies in partnership
with the Department of Energy and the
Securities and Exchange Commission to improve
access by such firms to the capital markets.
Recognizing the importance of the energy sector
and the capital-raising challenges besetting
such firms, the PSE aligned its policies with best
practices worldwide. The PSE also revived the
listing by way of introduction rules which paved
the way for companies to become listed through
this route such as Philex Petroleum Corporation
last year.
The Exchange recognizes that as it continues
to champion good corporate governance,
reforms towards this direction must begin at
home. The spin-off of our Market Regulation
Division into the self-regulating Capital Markets
Integrity Corporation (CMIC) is a big part of our
corporate governance enhancement efforts.
To further enhance CMIC’s monitoring
capability and strengthen market integrity,
it recently signed an agreement with the
Korea Exchange for the acquisition and
implementation of a surveillance system called
EXTURE Surveillance System. The reinstatement
of the minimum public ownership rule last
year should also help ensure fair pricing and
redistribute wealth to the investing public.
3
 As an offshoot, this rule should also help
encourage more follow-on offerings and
additional listings for our investing public.
Your Exchange is also at the forefront of
improving trading infrastructure and services
to our trading participants. In order to expand
brokers’ reach to investors and boost market
activity using technology, the PSE started the
development of an online service bureau which
aims to offer an online trading platform to allow
trading participants to offer the convenience of
online trading to their investors. This is in step
with our recent initiatives to stimulate market
activity by upgrading trading technology and
tapping into different time zones.
As we continue with our initiatives and
the confidence in our market is solidified,
I
we remain committed to ensuring that the
gains redound also to our shareholders. In 2011,
the Board approved a P12 per share cash
dividend, consisting of a P6.16 regular dividend
and a P5.84 special cash dividend.
The measures we have implemented in 2011
have focused on boosting market liquidity and
enhancing investor confidence. These initiatives
have allowed the Exchange to conquer
formidable frontiers and to set the tone
for higher growth in 2012.
Notably, we are on our final year in 2012
in the implementation of our five-year
strategic agenda under the LEVEL UP program
which 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. As
we reach the tail end implementation of the
LEVEL UP agenda, your Exchange will revisit
the milestones that were created under this
strategic plan to hopefully design enhanced
strategies to carry the stock market forward.
With your support and faith in the Board,
we can now proudly claim that the PSE has
begun to takeoff!
JOSE T. Pardo
CHAIRMAN
4 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
PRESIDENT's Message
am pleased to report that the
Philippine Stock Exchange (PSE) Exchange remained steadfast and resilient
was the best performing
market in Asia and one of the
best in the World in 2011
amid the storms that circled
global financial markets. For 2011,
the World Federation of Exchanges
ranked the PSE among the top
markets in terms of main index
performance, growth in liquidity and
expansion in market capitalization
among a universe of 51 stock
exchanges globally.
The PSE index’s (PSEi) phenomenal record
last year was a reflection of the resiliency
of the country and Philippine companies’
abilities to generate strong valuations.
The benchmark PSEi shattered previous
records to achieve a new record high of 4,550.53
on August 1, 2011. By the end of 2011, the PSEi
managed to post gains of 170.82 points
to close at 4,371.96 or 4.1 percent higher
from its previous close of 4,201.14 in 2010.
The feat becomes more impressive when
measured against the 51 other main global
indices, 46 of which ended in negative territory.
The local bid also remained robust for 2011.
Interestingly enough, even as net foreign buying
amounted to P56.52 billion in 2011, local
investors continued to lead trading activity
as they accounted for 62.2 percent of the total
value turnover for 2011.
From a big-picture perspective, the PSE had
a substantial contribution in helping listed
companies increase their valuations as seen in
the rise of publicly listed firms’ domestic market
capitalization by 5.0 percent to P7.24 trillion
as of end-2011 from the previous year’s P6.89
trillion. With global markets facing a multitude
of uncertainties and difficulties in 2011, the
in its goal of creating additional wealth.
Capital raised at the Philippine stock market
reached P107.50 billion in 2011, the highest
total amount raised in a single year. This figure
is 26.6 percent higher than the amount raised
last year and breaches by 19.3 percent the
previous record posted in 2007. Capital raising
activities totalled 95 transactions, and included
initial public offerings, follow-on offerings, stock
rights and private placements.
The listings on the PSE for 2011 also
represented a diverse roster of companies.
A total of five companies conducted initial
public offerings last year namely: Megawide
Construction Corporation, Puregold Price Club,
Inc., Cirtek Holdings Philippines Corporation,
Calapan Ventures, Inc. and Touch Solutions, Inc. –
raising a total of P9.04 billion from the market.
Another company, Philex Petroleum Corporation,
listed by way of introduction. Capital proceeds
from private placements, stock rights offerings
and follow-on offerings amounted to P42.85
billion, P40.61 billion and P15 billion,
respectively.
Total value turnover for 2011 also registered
a new record high for the Exchange as this
reached P1.42 trillion, 17.8 percent higher
than the P1.21 trillion registered in 2010.
We believe that the fruits of the investments
we have been undertaking in the past years
are now showing. We are highly encouraged
by the increase in trading activity and we hope
we could leverage on this momentum in our
plans to introduce more products and services
in the market.
With higher trading activity and record
capital raising levels, the PSE reported that
operating revenues grew to P900.76 million
in 2011 from P822.45 million the previous year.
 “For several years, the issue
for the PSE has been—do we
just move together with the
tides of the market or do
we position ourselves in a
way that we can rise above
what the global investment
environment presents?
We need to continue with
the thrust to improve our
product offering cycle
despite the odds as we
benchmark ourselves with
our global peers.

Trading-related fees revenues increased by

15.2 percent to P202.86 million from P176.03
million. Service fees generated by the Securities
Clearing Corporation of the Philippines, a
wholly-owned subsidiary of PSE, also increased
by 17.8 percent to P254.03 million from P215.60
million due to higher trading volume. Average
daily trading reached P5.71 billion in 2011,
or 15.5 percent higher than in 2010.
Listing-related income likewise recorded
a 6.8 percent increase to P429.29 million
from 2010.
On the other hand, total costs of services
and general and administrative expenses for
the period were higher by 8.2 percent to P440.59
million. This was largely due to costs incurred
related to the development of new products
and higher depreciation costs attributable
mainly to the newly installed PSEtrade or the
trading engine that replaced the old Maktrade
trading system. Repairs and maintenance, which
similarly includes related costs on the new
trading engine, also went up in 2012.
Meanwhile, other income declined because of
the absence of one-time gains on available for
sale investments registered in 2010 amounting
to P36.95 million, although this was tempered
by gains from the investment management
account which stood at P9.42 million. Interest
income also suffered a net decrease of P18.83
million due to lower interest yields in 2011.
As a result of these factors, net income for
2011 reached P406.19 million, slightly lower
than the P417.50 million in the same period
the previous year.
As we look towards 2012, we will be
tenacious in improving profitability as we also
endeavour to strike a balance with our medium-
term vision of developing new products for the
market. For several years, the issue for the PSE
has been—do we just move together with the
tides of the market or do we position ourselves
in a way that we can rise above what the global
investment environment presents? We need to

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 5
 continue with the thrust to improve
our product offering cycle despite the odds as
we benchmark ourselves with our global peers.
Enhancing Corporate Governance
We continue to implement our five-year
LEVEL UP strategic plan with initiatives to
enhance corporate governance and improving
market liquidity taking significant limelight
in our long list of activities. Improving the
country’s corporate governance image remains
one of the biggest factors to explain the low-
level growth trajectory of “Philippines, Inc.”
despite being one of the oldest bourses in Asia,
and your Exchange is determined to improve
the way investors perceive our market.
In 2011, the PSE implemented the spin-
off of its Market Regulation Division into the
Capital Markets Integrity Corporation which
is a reflection of how serious the PSE is in
identifying and apprehending market violators.
To further enhance CMIC’s monitoring capability
and strengthen market integrity, it recently
signed an agreement with the Korea Exchange
for the acquisition and implementation of
a state-of-the-art surveillance system.
To fortify our trading participants’ abilities
to handle risk, the PSE implemented the
increase in unimpaired paid-up capital
requirement to P30 million for existing broker-
dealers, as well as the P100 million unimpaired
paid-up capital requirement for new entrants.
Like the banking system, this enables individual
firms to weather market volatility and increase
confidence amongst all stakeholders of the
stability of trading participants.
Your Exchange also moved swiftly to delist
five companies from its ranks early in the year.
Considering that the last delisting due
to repeated rule violations occurred seven years
ago in 2004, this move sent a very strong signal
to the market that the new management team
means business and is focused on providing
a transparent, level playing field to all market
participants. Also, for the first time in the
Exchange’s history, officers of an errant broker,
HK Securities, were jailed for syndicated estafa.
In order to improve market liquidity, your
Exchange strongly supported the extension
of trading hours, installed a new trading
system and enhanced the Exchange’s rules
and regulations pertaining to public floats and
listings. The PSE extended its trading hours
to 1:00 PM in October as part of its efforts to
increase liquidity in the market. On January 2,
2012, trading hours were further extended up
to 3:30 PM to capture more market time zones.
To further enhance liquidity from a regulatory
perspective, your Exchange spearheaded the
revival of a crucial continuing listing
requirement—the Rule on Minimum Public
Ownership which is expected to bring about
more follow-on offerings, and even out free
float levels across all listed companies, thus
making more shares available to be bought
and sold by the public. To align the PSE
with global standards, the Exchange also
implemented in September 2011 a change
in the policy on calculating the PSEi.
The stock market has often been
regarded as a barometer of investor
confidence and a good proxy of the
economy. But more than this, the PSE
is a leading indicator for many business
decisions within and outside the country.
Social Responsibility
The PSE remains a valuable partner
in the development of education reforms.
In 2011, your Exchange introduced
a Master of Business Administration
(MBA) specializing in capital markets
in partnership with the Lyceum of the
Philippines University – Manila, and held
the PSE Academe Week, an integrated
campaign to further promote stock market
education among various publics. This
is a strong follow up to our partnerships
with government to aid in long-term

T
he course of global markets in 2011 was mainly
characterized by intermittent advances and
retreats. On one hand, the local market was
propelled by renewed confidence in the
Philippine economy along with expectations
of better corporate earnings. On the other hand, the
persistent uncertainties on the resolution to the US
and Eurozone debt crises and political tensions in
the Middle East and North Africa (MENA) would time
and again weigh down on the advance of the stock
market. But by the end of the year, the local stock
market set another banner year, supported by sound
Stock Market macroeconomic fundamentals and rosier prospects
Performance on emerging markets like the Philippines.

The year 2011 opened to a barrage of negative news beginning

with the uprisings in Tunisia and Egypt because of widespread
unemployment and in protest of the long-ruling regimes prevailing
in many MENA countries. Similar conflicts then spread to neighboring
countries in Libya, Yemen and Bahrain. Stock markets reeled behind
the spate of political unrests, but the impact was heavier on
commodities as the MENA region comprises some of the world’s
biggest oil exporters. The conflicts raised supply disruption concerns
and transit risks of oil to the MENA region’s global trading partners,
bringing about a spike in crude oil prices, albeit only temporary.

6 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 academe-based reforms such as the
integration of a capital markets subject
in the high school curriculum –particularly
the introduction of the capital markets
in the economics subject of fourth year
students. To fully integrate capital markets
into the general education curriculum,
the Exchange is also pursuing the
establishment of a Savings and Investments
subject in the college general education.
I believe that our marketing initiatives
towards raising the profile of the PSE have
in large part contributed to the growth of
investors to-date to 500,000.
Your Exchange has also actively
supported disaster victims by coordinating
the resources of its stakeholders through
the PSE Foundation. In 2011, the PSE
Foundation disbursed donations to victims
of typhoons Sendong, Pedring and Quiel
worth P1.4 million. The PSE is also a faithful
contributor annually to the Philippine
Business for Social Progress or PBSP for
various development projects nationwide.
The PSE Foundation has also supported
various capital market development projects
worth P1.5 million in 2011. Last year alone,
the PSE spent a substantial percentage
or 90 percent of its marketing budget
in the areas of market education and
corporate social responsibility.
The PSE had also begun reducing
its carbon footprint by employing environment-
friendly measures such as increasing soft file
distribution of our published materials like
the the Annual Report and Information
Statements as well as implementing green
procurement initiatives.
Overall, your Management’s commitment
to capital market development and reforms
have boosted the social profile of the PSE,
and have shown that as a regulator and
listed company, the Exchange can serve as an
exemplar for other listed corporations to follow.
The year 2012 will mark our shift to a new
agenda that will serve as a roadmap for the
Exchange’s plans and strategies in the next five
years. With the reforms and initiatives we have
undertaken in the past years and with your
support and contributions, we are confident
that we can set higher standards and goals
for the Exchange in the years to come.
Thank you very much.
HANS B. SICAT
PRESIDENT
and chief executive officer

Another development that contributed to the already fragile global
recovery was the weakening of the US economy. Concerns over
a double-dip recession heightened as the US reached its debt ceiling
of US$14.3 trillion. The approval of a bill raising the debt ceiling
by US$2.1 trillion was delayed by a brief political impasse at the
US Congress, but was passed just in time before the US would have
defaulted. International credit rating agency Standard & Poor’s (S&P),
however, viewed the effort insufficient and, in an unprecedented
move, downgraded the US credit rating to AA- from AAA previously.
The US’ burgeoning fiscal problem was further compounded by a high
unemployment rate and the poor performance of its manufacturing
industry. This prompted the US Federal Reserve (US Fed) to keep
interest rates close to zero until mid-2013 to pump-prime the
economy. The US Fed also revealed its sale of US$400 billion worth
of short-term securities to purchase longer-term holdings in a bid
to calm Treasury yields.
The debt crisis in the Eurozone stretched into 2011 with other
members feared to have been dragged into the mess. In May, the
International Monetary Fund and the European Union approved
a €78 billion (US$116 billion) bailout for Portugal. This triggered
apprehension on whether or not the expanse of the impact of
the crisis has been fully uncovered, and as events would unfold
shortly thereafter, Greece was seeking a second bailout package by
September. Global stock markets took a beating to this news, with our
own PSEi plummeting by 4.2 percent or 164.74 points to 3,721.22
on September 26, its lowest level posted in 2011. Just like the US,
Greece’s call for rescue funding was impeded by politics as shown
in the plan of then Greek Prime Minister George Papandreou to first
conduct a referendum on the bailout which he later abandoned.
Greece nonetheless received in November the second tranche of its
existing bailout package amounting to €8 billion (US$10.7 billion).
Investor sentiment gradually improved after Germany and France’s
pronouncements that they were ready to re-capitalize European banks,
and with Eurozone members agreeing to boost its €440 billion bailout
fund. In November, the US Fed, together with the European Central
Bank and central banks of Canada, Switzerland, Japan and the UK,
surprised financial markets with a reduction in the cost of borrowing
of dollars overnight by half a percentage point to 50 basis points until
February 1, 2013 to avert any liquidity crisis. The six central banks
also established a temporary bilateral swap program among their
respective currencies should market conditions worsen.
In general, these external developments contributed to the
volatility felt not only in the stock market, but also in the commodities
market. At the New York Mercantile Exchange (NYMEX), crude oil went
up to as high as US$113.93 per barrel on April 29 before finishing the
year at US$98.83 per barrel, an 8.2 percent jump from the previous
close of US$91.38 per barrel in 2010. Though the price of crude oil
surged past the US$100 level, it remained 21.6 percent lower than
the all-time record of US$145.29 per barrel set on July 3, 2008.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 7
 2011
Figure 1

BSP increases
interest rates
by another
25 basis points
5,000
IMF and EU provide Moody’s and
USD 116 billion Fitch Ratings
bailout package upgrade
for Portugal Philippine
BSP hikes credit rating
Economy posts interest rates ADB raises GDP GDP expands
highest growth by 25 basis points forecast for the by 4.9% in the
1st quarter Federal Reserve
4,500 in 2010 at 7.6% since July 2009 Philippines to 5.0% is downbeat
on US economy
Oil prices rise Double crisis in
due to conflicts in China moves to
Japan adds to
Tunisia and Egypt combat inflation
worries of weak
global recovery
Civil unrest spreads
to other MENA
countries
4,000

3,500
JAN FEB MAR APR MAY JUN

PSEi vs. Select Asian Indices, 2011 vs. 2010 Table 1 Prices of precious metals also soared. The price of gold
Country/ % Change
Nation Stock Index End-Dec. 2010 End-Dec. 2011 Year-on-Year
Philippines PSE Index 4,201.14 4,371.96 4.1
Indonesia Jakarta Composite Index 3,703.51 3,821.99 3.2
Malaysia Kuala Lumpur Composite Index 1,518.91 1,530.73 0.8
Thailand SET Index 1,032.76 1,025.32 -0.7
South Korea KOSPI Index 2,051.00 1,825.74 -11.0
Singapore Straits Times Index 3,190.04 2,646.35 -17.0
Japan TOPIX Index 898.80 728.61 -18.9
Hong Kong Hang Seng Index 23,035.45 18,434.39 -20.0
Taiwan Taiex Index 8,972.50 7,072.08 -21.2
China Shanghai Composite Index 2,808.08 2,199.42 -21.7
Japan Osaka 300 Common Index 981.06 744.70 -24.1
India NSE S&P CNX Nifty 6,134.50 4,624.30 -24.6
India BSE Sensex 20,509.09 15,454.92 -24.6
Vietnam VN Index 484.66 351.55 -27.5
China Shenzhen Composite Index 1,290.87 866.65 -32.9
traded at the US Commodity Exchange peaked at US$1,888.70
per ounce on August 22 as the precious metal again proved its
value as a safe haven in times of crisis. Gold eventually settled
at US$1,565.80 per ounce, 10.2 percent more than
the US$1,421.10 per ounce closing price in 2010.
Amid all the challenges and turmoil, 2011 would turn out
to be another year filled with significant achievements for
the Philippines and the local stock market. Brushing off global
fears in favor of in-country stability, the benchmark Philippine
Stock Exchange (PSE) index rallied 170.82 points in 2011 to
close at 4,371.96, 4.1 percent higher than its end-2010 level,
making it the best performing index in Asia at yearend. This
was the third consecutive year that the main index gained
since the subprime crisis erupted in late 2008, in addition
to hitting uncharted territory seven times before reaching
its highest mark of 4,550.53 on August 1. The performance
of the PSE index (PSEi) was eclipsed by only a few other indices
including the Dow Jones Industrial Average, which rose by 5.5
percent or 640.05 points to 12,217.56 from the 11,577.51 close
a year ago.

8 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 US Fed reveals
PSEi is the best
plan to buy
performer in Asia,
USD400 billion
ending the year
long-term debt
with a 4.1% gain
PSEi hits new
record at 4,550.53 Greece seeks 2nd
S&P raises outlook
PSEi tops on August 1 bailout package
on Philippine credit 5,000
record six rating to positive
times to end US loses AAA credit Greece
IMF lowers GDP from stable
at 4,507.04 rating from S&P receives nearly
forecast for the
on July 20 USD 11 billion
Philippines to 4.7%
on Greece’s GDP for the EU agrees to boost
efforts to avoid 2nd quarter bailout fund GDP up slightly
PSEi records lowest
default drops by 3.1% by 3.2 % in
level for the year
DBCC revises the 3rd quarter
at 3,721.22 on
growth targets for 4,500
September 26
2011 and 2012

4,000

3,500
JUL AUG SEP OCT NOV DEC

The improvement in the country’s fiscal situation lent some
support to the continued rise of the stock market. For 2011, the
government narrowed its budget gap to P197.75 billion from the
P314.46 billion deficit incurred during the same period in 2010.
This could be attributed to low government expenditures partly
because the governed felt it needed to do housecleaning before
it would go full-throttle on its flagship public-private partnership
program. Recognizing this effort from the fiscal front, credit
rating agencies Moody’s Investors Service (Moody’s) and S&P
upgraded the Philippines to Ba2 and BB+, from Ba3 and BB status,
respectively. Moody’s maintained a stable outlook, while S&P
gave a positive outlook on the Philippine economy.
Inflation was likewise kept at manageable levels after hitting
5.2 percent twice in the year. Headline inflation rate averaged
4.8 percent in 2011, one percentage point more than the 3.8
percent average a year ago, but still within the government’s
3.0 to 5.0 percent target. This inflation level still prompted the
Bangko Sentral ng Pilipinas (BSP) to tweak monetary policy for
the first time since July 2009. The BSP raised its key interest rates
by 50 basis points on March 24 and May 5, sending the overnight
borrowing and lending rates to 4.5 percent and 6.5 percent,
respectively. The BSP also increased the reserve requirement
of banks to 21.0 percent in order to control inflation.
This favorable backdrop allowed the market to discount
the lackluster performance of the local economy that managed
to grow by only 3.7 percent, significantly lower than the 7.6 percent
recorded in election year 2010. The decline in gross domestic product
underscored the impact of the ailing global economy as demand for
exported goods waned. Business activity also slowed as evidenced
by the decline in earnings of listed companies. In the nine months
ending September, the combined net income of listed domestic
companies fell by 10.1 percent to P308.86 billion from P343.59
billion in the same period in 2010. (Data was gathered from the
nine-month financial statements of 235 companies out
of the 248 listed domestic companies.)
Trades at the foreign exchange market remained robust. The
Philippine peso, along with other Asian currencies, gained against
the US dollar owing in part to a weak US economy. However, the peso
finished at P43.93, down slightly by 0.1 percent or four centavos from
the close of P43.89 a year ago. The local currency hit a six-month
high of P42.10 on May 9, driven by the strength of overseas Filipinos’
remittances, which again beat expectations by posting a new record
level of US$20.12 billion, 7.2 percent higher than its 2010 mark.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 9
 The Philippine Stock Exchange, INC. Board of Directors

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

OPERATIONAL
year strategic plan that is focused on
improving its operations and performance

HIGHLIGHTS
to be at par with international best practices.

The LEVEL UP
Strategic Plan
Specifically, the strategic plan highlights the seven
key objectives of the Exchange starting from 2008
until 2012. The Exchange is guided by the
LEVEL UP objectives in achieving its maximum
potential as a preferred venue for raising
capital and also as an institution that
can contribute to the development
of the local economy.

L E V E L
List More Expand & Value & Enforce Enhance Launch New
Companies Educate the Corporate Shareholder Products &
& Securities Investor Base Governance Value Services
Standards

U P
Upgrade Market Partner with
Infrastructure & Government & Other
Human Resources Stakeholders

10 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 List More
L Companies &
Securities

New Listings and Capital Raised

Fund-raising activities in the market brought in a record
P107.50 billion of total capital raised, or 26.6 percent more than
the P84.94 billion total capital generated in 2010. A total of five
companies conducted initial public offerings (IPO) namely: Megawide
Construction Corporation, Puregold Price Club, Inc., Cirtek Holdings
Philippines Corporation, Calapan Ventures, Inc. and Touch Solutions,
Initial Public Offerings and Listing by Way of Introduction, 2011 Table 2
Date Company Name Symbol Type of Board
Offering
Feb 18 Megawide Construction Corporation MWIDE IPO First
Sep 12 Philex Petroleum Corporation PXP LBWI Second
Oct 5 Puregold Price Club, Inc. PGOLD IPO First
Nov 18 Cirtek Holdings Philippines Corporation CHIPS IPO First
Nov 24 Calapan Ventures, Inc. H20 IPO Second
Dec 19 Touch Solutions, Inc. TSI IPO Second
Inc. – raising a total of P9.04 billion from the market. Philex Petroleum
Corporation listed by way of introduction (LBWI). The marketing efforts
of PSE have definitely paid off given the challenging market environment
in 2011. The number of new company listings in the Exchange, which
is the highest since 2008, was made possible due in large part to the
discussions initiated by the PSE to five of the six companies that listed
in 2011.
Meanwhile, capital proceeds from private placements, stock rights
offerings and follow-on offerings amounted to P42.85 billion,
P40.61 billion and P15 billion, respectively.
Trading Transactions
Brisk trading activity pushed the value of trading transactions to a new
record level in 2011, marginally eclipsing the P1.34 trillion level posted
four years ago. Total value turnover for the year expanded by 17.8 percent
to P1.42 trillion from P1.21 trillion. Meanwhile, average daily turnover
rose to P5.71 billion, a 15.5 percent increase from P4.95 billion in 2010.

Select PSE Market Indicators Table 3

2011 vs 2010
MARKET INDICATOR 2007 2008 2009 2010 2011 % Change

PSE Index (PSEi), yearend close 3,621.60 1,872.85 3,052.68 4,201.14 4,371.96 4.07

Total Value Traded (in billion Php) 1,338.25 763.90 994.15 1,207.38 1,422.59 17.82
Average daily value traded (in billion Php) 5.48 3.11 4.11 4.95 5.71 15.46

Foreign buying (in billion Php) 680.33 361.00 329.28 477.38 565.86 18.54
Foreign selling (in billion Php) 624.76 383.17 314.37 441.76 509.35 15.30
Net foreign buying/(selling) (in billion Php) 55.57 (22.16) 14.92 35.62 56.52 58.66
Total Foreign (in billion Php) 1,305.09 744.17 643.65 919.13 1,075.21 16.98
Share of Foreign trading to Total Trading 48.76% 48.71% 32.37% 38.06% 37.79% -0.72

Capital Raised (in billion Php) 90.13 31.55 38.77 84.94 107.50 26.56
Initial Public Offerings (in billion Php) 18.91 1.95 0.02 12.78 9.04 -29.25
Additional Listings (in billion Php) 71.23 29.60 38.75 72.16 98.46 36.44

Market Capitalization, yearend (in billion Php) 7,976.84 4,072.16 6,032.22 8,866.11 8,696.96 -1.91
Domestic firms (in billion Php) 4,266.05 2,476.99 3,995.07 6,892.21 7,238.99 5.03
Foreign firms (in billion Php) 3,710.79 1,595.17 2,037.15 1,973.90 1,457.97 -26.14

No. of Listed Companies, yearend 244 246 248 253 253 0.00
Domestic 242 244 246 251 251 0.00
Foreign 2 2 2 2 2 0.00
No. of Listed Issues, yearend 314 316 318 328 326 -0.61
Domestic 312 314 316 326 324 -0.61
Foreign 2 2 2 2 2 0.00

Total Market
Dividend Yield 2.33 5.42 3.52 2.64 2.91 10.32
Price-Earnings Ratio 14.17 8.95 23.26 21.32 16.54 -22.42

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 11
 Foreign Trading
Foreign investors continued to dominate trading activity in the market
as total transactions netted a buying of P56.52 billion, an increase of
58.7 percent than P35.62 billion the previous year. Total foreign buying
amounted to P565.86 billion, while total foreign selling came in at
P509.35 billion. The share of foreign trading to total trading decreased
by 0.7 percent to 37.8 percent from 38.1 percent. This was significantly
lower than the percentage share recorded in the past four years,
indicating the growing participation of local investors.
Market Capitalization
Total market capitalization contracted by 1.9 percent to P8.70 trillion
from P8.87 trillion the previous year. However, domestic market capitalization,
which excludes foreign firms Sun Life Financial Inc. and Manulife
Financial Corporation, rose by 5.0 percent to a new record high
of P7.24 trillion from P6.89 trillion. The industrial sector accounted
for 34.0 percent of the domestic market capitalization in the amount
of P2.46 trillion.
Performance of Sector Indices
Four of the six PSE sector indices registered positive growth in 2011.
The mining and oil sector was the biggest gainer, with its index surging
by 68.5 percent. This was followed by the holding firms sector, higher by
3.4 percent; services sector, by 1.6 percent; and financials sector, by 0.8
percent. The property and industrial indices fell by 6.4 percent and 2.0
percent, respectively. The broader all-shares index meanwhile inched
up by 1.3 percent to end at 3,045.04 from 3,006.42 a year earlier.

Annual Growth Rate of Indices Table 4 2011 Market Activity (All Issues) Table 5
Index 2010 2011 % Change Sector No. of Issues Actively Traded Gainers Losers Unchanged

All Shares 3,006.42 3,045.04 1.3 Financials 32 26 18 8 0

Financials 961.47 968.91 0.8
Industrial 7,220.61 7,074.65 -2.0
Holding Firms 3,388.74 3,503.61 3.4
Property 1,582.47 1,481.25 -6.4
Services 1,590.40 1,616.32 1.6
Mining and Oil 13,947.58 23,504.75 68.5
Industrial 79 66 33 32 1
Holding Firms 45 43 27 16 0
Property 47 39 20 18 1
Services 90 82 48 31 3
Mining & Oil 31 30 19 10 1
SME 2 2 2 0 0
Total Number of Issues 326 288 167 115 6

Domestic Market Capitalization and Trading Value by Sector (in billion Php) Table 6
Market Capitalization Value Traded
2010 2011 % Change % Share 2010 2011 % Change % Share

Financials Sector 833.62 2,328.38 179.3 32.2 159.90 170.15 6.4 12.0
Banks 783.95 803.47 2.5 11.1 156.00 162.80 4.4 11.5
Other Financial Institutions 50.16 1,524.92 2,940.3 21.1 3.90 7.35 88.4 0.5

Industrial Sector 2,510.47 2,458.48 -2.1 34.0 375.98 374.09 -0.5 26.4
Electricity, Energy, Power & Water 930.45 908.84 -2.3 12.6 276.28 226.51 -18.0 16.0
Food, Beverage & Tobacco 1,292.61 1,317.05 1.9 18.2 89.97 137.57 52.9 9.7
Construction, Infrastructure & Allied Services 169.07 134.28 -20.6 1.9 7.79 7.20 -7.6 0.5
Chemicals 12.32 12.52 1.6 0.2 0.42 1.07 156.0 0.1
Diversified Industrials 106.03 85.78 -19.1 1.2 1.52 1.74 14.6 0.1

Holding Firms Sector 1,277.81 1,364.04 6.7 18.8 231.10 288.73 24.9 20.4

Property Sector 752.50 815.94 8.4 11.3 171.80 150.23 -12.6 10.6

Services Sector 1,116.04 1,222.50 9.5 16.9 192.72 235.89 22.4 16.7
Media 60.86 47.93 -21.2 0.7 8.26 1.94 -76.5 0.1
Telecommunications 691.07 767.50 11.1 10.6 108.71 132.10 21.5 9.3
Information Technology 37.72 35.80 -5.1 0.5 8.46 16.05 89.6 1.1
Transportation Services 258.65 245.30 -5.2 3.4 62.88 56.14 -10.7 4.0
Hotel & Leisure 10.81 18.37 70.0 0.3 1.27 15.39 1,114.2 1.1
Education 14.09 20.42 44.9 0.3 0.16 0.39 150.1 0.0
Diversified Services 42.90 87.17 103.2 1.2 2.99 13.88 364.6 1.0

Mining & Oil Sector 401.23 506.90 26.3 7.0 75.88 203.49 168.2 14.4
Mining 347.39 417.77 20.3 5.8 75.08 199.02 165.1 14.1
Oil 53.83 89.13 65.6 1.2 0.81 4.47 453.7 0.3

SME 0.55 0.71 29.9 0.0 0.12 0.01 -95.4 0.0

Total Domestic Issues 6,892.21 7,238.99 5.0 100.0 1,207.25 1,414.48 17.2 100.0

Domestic Issues 6,892.21 7,238.99 5.0 77.7 1,207.25 1,414.48 17.2 99.43
Foreign Issues 1,973.90 1,457.97 -26.1 22.3 0.14 8.11 5,806.5 0.57
Total Market 8,866.11 8,696.96 -1.9 100.0 1,207.38 1,422.59 17.8 100.0

12 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Summary of 2011 Capital Raising Activities Figure 2
(Total P107.50 billion)

Stock Rights Offerings Private Placements

P9.04 billion
IPO (Primary Shares)
P40.61 P42.85
billion billion
Follow-On (Primary Shares)
P15 billion

PSEi Recomposition Table 7

Results of Recomposition, 2011
as of May 9, 2011 as of September 12, 2011
1 Aboitiz Equity Ventures, Inc. 1 Aboitiz Equity Ventures, Inc.
2 Aboitiz Power Corporation 2 Aboitiz Power Corporation
3 ABS-CBN Corporation 3 Alliance Global Group, Inc.
4 Alliance Global Group, Inc. 4 Ayala Corporation
5 Ayala Corporation 5 Ayala Land, Inc.
6 Ayala Land, Inc. 6 BDO Unibank, Inc.
7 BDO Unibank, Inc. 7 Bank of the Philippine Islands
8 Bank of the Philippine Islands 8 Belle Corporation
9 DMCI Holdings, Inc. 9 Cebu Air, Inc.
10 Energy Development Corporation 10 DMCI Holdings, Inc.
11 Filinvest Land, Inc. 11 Energy Development Corporation
12 First Gen Corporation 12 First Gen Corporation
13 First Philippine Holdings Corporation 13 Globe Telecom, Inc.
14 Globe Telecom, Inc. 14 International Container Terminal Services, Inc.
15 International Container Terminal Services, Inc. 15 JG Summit Holdings, Inc.
16 JG Summit Holdings, Inc. 16 Jollibee Foods Corporation
17 Jollibee Foods Corporation 17 Manila Electric Company
18 Lepanto Consolidated Mining Company 18 Manila Water Company, Inc.
19 Manila Electric Company 19 Megaworld Corporation
20 Manila Water Company, Inc. 20 Metro Pacific Investments Corporation
21 Megaworld Corporation 21 Metropolitan Bank & Trust Company
22 Metro Pacific Investments Corporation 22 Philex Mining Corporation
23 Metropolitan Bank & Trust Company 23 Philippine Long Distance Telephone Company
24 Philex Mining Corporation 24 Robinsons Land Corporation
25 Philippine Long Distance Telephone Company 25 San Miguel Corporation
26 Robinsons Land Corporation 26 Semirara Mining Corporation
27 Security Bank Corporation 27 SM Development 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 25 First Gen Corporation FGEN 17,452,849,850
2011 Top 25 Companies by Value Traded (Regular Market) Table 8
Rank Company Name Code Value Traded
(Regular Market)
1 Philippine Long Distance Telephone Company TEL 77,068,876,939
2 Lepanto Consolidated Mining Company LC 74,809,493,400
3 SM Investments Corporation SM 66,443,801,970
4 Alliance Global Group, Inc. AGI 54,351,834,352
5 Metropolitan Bank & Trust Company MBT 53,546,864,409
6 San Miguel Corporation SMC 49,945,184,254
7 Energy Development Corporation EDC 41,488,048,075
8 Aboitiz Power Corporation AP 39,169,753,120
9 BDO Unibank, Inc. BDO 36,145,671,063
10 Aboitiz Equity Ventures, Inc. AEV 33,115,297,440
11 DMCI Holdings, Inc. DMC 32,620,839,370
12 International Container Terminal Services, Inc. ICT 31,120,823,480
13 Megaworld Corporation MEG 30,180,869,560
14 Ayala Land, Inc. ALI 29,215,551,132
15 Universal Robina Corporation URC 26,271,390,218
16 Philex Mining Corporation PX 25,772,802,147
17 Semirara Mining Corporation SCC 25,190,191,657
18 Metro Pacific Investments Corporation MPI 24,499,270,010
19 Bank of the Philippine Islands BPI 22,729,635,569
20 Manila Electric Company MER 20,631,922,154
21 Ayala Corporation AC 20,418,989,488
22 Cebu Air, Inc. CEB 19,941,439,690
23 SM Prime Holdings, Inc. SMPH 19,239,261,616
24 Manila Mining Corporation MA 18,804,831,730

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 13
 2011 Top 25 Price Gainers (Common Issues) Table 9 2011 Top 25 Price Losers (Common Issues) Table 10
2011 2010 %
Rank Company Name Close Close Change
Code (in Php) (in Php) Code (in Php) (in Php)
1 Globalport 900, Inc. PORT 30.80 1.03 2,890.29
2 Asia Amalgamated Holdings Corporation AAA 3.06 0.27 1,033.33
3 San Miguel Properties, Inc. SMP 585.00 57.75 912.99
4 AGP Industrial Corporation AGP 27.30 3.77 624.96
5 Century Properties Group Inc. CPG 1.94 0.33 496.92
6 Mariwasa Siam Holdings, Inc. MMI 3.20 0.70 357.14
7 Lepanto Consolidated Mining Company “B” LCB 1.79 0.46 293.41
8 Zeus Holdings, Inc. ZHI 0.75 0.19 288.60
9 Wellex Industries, Inc. WIN 0.27 0.07 273.24
10 Lepanto Consolidated Mining Company “A” LC 1.55 0.46 236.96
11 Active Alliance, Inc. AAI 28.70 8.58 234.50
12 PNOC Exploration Corporation “B” PECB 65.00 20.10 223.38
13 Philippine Estates Corporation PHES 0.23 0.08 206.58
14 Manila Broadcasting Company MBC 3.04 1.00 204.00
15 Manila Mining Corporation “A” MA 0.06 0.02 160.87
16 Manila Mining Corporation “B” MAB 0.06 0.02 156.52
17 Imperial Resources, Inc. “B” IMPB 10.00 4.00 150.00
18 Dizon Copper-Silver Mines, Inc. DIZ 11.38 4.70 142.13
19 Leisure & Resorts World Corporation LR 9.09 3.80 139.21
20 Boulevard Holdings, Inc. BHI 0.17 0.07 138.57
21 Synergy Grid & Development Phils., Inc. SGP 510.00 217.40 134.59
22 Benguet Corporation “A” BC 26.50 12.00 120.83
23 Philippine Seven Corporation SEVN 25.90 12.45 108.00
24 Forum Pacific, Inc. FPI 0.20 0.10 100.00
25 Liberty Flour Mills, Inc. LFM 55.00 29.20 88.36
2011 Top 25 Companies by Trading Frequencies (Regular Market) Table 11 2011 Top 25 Companies by Market Capitalization (Common Shares) Table 12
Rank Company Name Code Trading Frequency
1 Lepanto Consolidated Mining Company LC 280,255
2 Alliance Global Group, Inc. AGI 138,576
3 San Miguel Corporation SMC 124,187
4 Megaworld Corporation MEG 114,271
5 Energy Development Corporation EDC 110,480
6 Metropolitan Bank & Trust Company MBT 100,279
7 Metro Pacific Investments Corporation MPI 95,941
8 Manila Mining Corporation MA 95,419
9 Ayala Land, Inc. ALI 86,673
10 Philex Mining Corporation PX 84,740
11 Aboitiz Power Corporation AP 84,328
12 DMCI Holdings, Inc. DMC 83,334
13 Leisure & Resorts World Corporation LR 78,623
14 Boulevard Holdings, Inc. BHI 73,470
15 Manila Electric Company MER 70,431
16 Century Properties Group Inc. CPG 67,200
17 Semirara Mining Corporation SCC 65,854
18 Atlas Consolidated Mining & Development Corporation AT 63,584
19 Oriental Peninsula Resources Group, Inc. ORE 63,298
20 Belle Corporation BEL 63,074
21 Cebu Air, Inc. CEB 62,216
22 NiHAO Mineral Resources International, Inc. NI 62,151
23 Philippine Long Distance Telephone Company TEL 58,910
24 Global-Estate Resorts, Inc. GERI 58,583
25 Bank of the Philippine Islands BPI 56,453
14 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
2011 2010 %
Rank Company Name Close Close Change
1 ATN Holdings, Inc. “B” ATNB 2.69 8.45 -68.17
2 MRC Allied, Inc. MRC 0.28 0.71 -60.56
3 Sta. Lucia Land, Inc. SLI 0.72 1.73 -58.38
4 Polar Property Holdings Corporation PO 2.55 5.50 -53.64
5 Atok-Big Wedge Company, Inc. AB 24.00 42.90 -44.06
6 Alphaland Corporation ALPHA 34.25 60.50 -43.39
7 Cebu Air, Inc. CEB 64.80 113.40 -42.86
8 Bogo-Medellin Milling Company, Inc. BMM 54.00 90.00 -40.00
9 PLDT Communications and Energy Ventures, Inc. PCEV 4.50 7.50 -40.00
10 Holcim Philippines, Inc. HLCM 9.4000 15.5000 -39.35
11 Integrated Micro-Electronics, Inc. IMI 4.99 8.20 -39.15
12 Primex Corporation PRMX 2.1000 3.3300 -36.94
13 Highlands Prime, Inc. HP 1.31 2.00 -34.50
14 LMG Chemicals Corporation LMG 1.21 1.84 -34.24
15 Information Capital Technology Ventures, Inc. ICTV 0.40 0.60 -34.17
16 ABS-CBN Corporation ABS 29.70 45.00 -34.00
17 Petron Corporation PCOR 12.60 18.82 -33.05
18 Swift Foods, Inc. SFI 0.12 0.17 -32.18
18 RFM Corporation RFM 1.19 1.74 -31.61
20 Megaworld Corporation MEG 1.70 2.48 -31.45
21 Manulife Financial Corporation MFC 487.00 710.00 -31.41
22 Transpacific Broadband Group International, Inc. TBGI 3.1000 4.4500 -30.34
23 Philippine Realty & Holdings Corporation RLT 0.51 0.73 -30.14
24 Liberty Telecoms Holdings, Inc. LIB 2.80 3.98 -29.65
25 Splash Corporation SPH 1.90 2.70 -29.63
Rank Company Name Code Market Capitalization
1 Manulife Financial Corporation MFC 873,502,072,224.00
2 Sun Life Financial Inc. SLF 584,470,015,000.00
3 Philippine Long Distance Telephone Company TEL 545,096,916,996.00
4 San Miguel Brewery, Inc. SMB 454,609,129,320.00
5 SM Investments Corporation SM 356,585,549,222.50
6 Manila Electric Company MER 278,629,277,695.20
7 San Miguel Corporation SMC 276,516,199,512.00
8 San Miguel Pure Foods Company, Inc. PF 234,500,604,072.00
9 Aboitiz Equity Ventures, Inc. AEV 221,703,153,613.15
10 Aboitiz Power Corporation AP 220,022,268,779.30
11 Ayala Land, Inc. ALI 197,434,192,085.04
12 Bank of the Philippine Islands BPI 196,310,860,749.60
13 SM Prime Holdings, Inc. SMPH 184,855,942,791.10
14 Ayala Corporation AC 179,526,962,454.00
15 JG Summit Holdings, Inc. JGS 170,949,370,173.55
16 BDO Unibank, Inc. BDO 153,838,836,513.00
17 Globe Telecom, Inc. GLO 149,950,819,909.00
18 Metropolitan Bank & Trust Company MBT 143,468,679,855.15
19 Petron Corporation PCOR 118,126,316,662.20
20 Energy Development Corporation EDC 117,937,500,000.00
21 DMCI Holdings, Inc. DMC 109,671,902,200.00
22 Alliance Global Group, Inc. AGI 106,190,021,302.86
23 International Container Terminal Services, Inc. ICT 102,813,659,080.00
24 Philex Mining Corporation PX 102,785,302,991.55
25 Universal Robina Corporation URC 98,952,092,784.00
 01 02
05
08
11
1 Emerging construction industry leader, Megawide
Construction Corporation debuted as the first initial
public offer for 2011. MWIDE raised over P2 billion
in proceeds.
2 Puregold Price Club, Inc. raised P7.5 billion in total
proceeds and was the biggest initial public offer for
the year.
3 Cirtek Holdings Philippines Corporation, a
complete solutions provider and subcontractor of
semiconductor devices and an electronics industry
player listed on the stock exchange after raising over
P295 million in total proceeds.
4 Calapan Ventures, Inc. or H20, a holding firm whose
subsidiary is the sole water producer and supplier in
the Cities of Calapan and Tabuk in Oriental Mindoro
raised over P105 million in proceeds from its maiden
offering.
03
06
09
12
5 Touch Solutions Inc. raised over P99 million from its
maiden listing. The company’s early entry and focus in its
field of expertise, particularly in the open source and open
systems technologies, has provided it with a “first mover
advantage” which is a big plus, especially in a fast-growing
and increasingly competitive IT sector.
6 San Miguel Pure Foods Company, Inc. raised P15 billion
from an offering of 15 million shares which was well
received by local retail and institutional investors.
7 San Miguel Corporation and majority shareholder
Top Frontier Investment Holdings, Inc. concluded an
international and domestic offer of treasury and secondary
common shares with a bell ringing ceremony. The
secondary offer raised over P16 billion in proceeds.
8 Philex Petroleum Corporation listed P2 billion worth
of shares by way of introduction.This is the first LBI
after the PSE declared the Amended LBI Rules effective
in March 2011.
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
04
07
10
13
9 Metropolitan Bank and Trust Company completed a P10
billion stock rights offering in 2011.
10 Robinsons Land Corp. raised P13.6 billion in proceeds from
its stock rights offer, one of the largest in PSE history. The
funds are to be deployed for land acquisition and mixed
use developments.
11 Manila Jockey Club, Inc. concluded a P287.5 million stock
rights offering in 2011.
12 Trans-Asia Oil and Energy Development Corporation
completed a P1.1 billion stock rights offer.
13 Property developer Belle Corporation concluded its 1:6
stock rights offer last year with proceeds of over P4.5
billion. The funds raised were to partially finance the
construction and development of Belle Grande Manila Bay,
seen to be the country’s leading high-end integrated resort
and gaming complex.
15
 Issuer Regulation
The Exchange continues to enforce the
requirements under the Listing and Disclosure
Rules in line with the Exchange’s principal
objective to provide a fair, orderly, efficient and
transparent market for the trading of securities
and to determine the suitability of securities
for listing for the protection of the public
interest at all times.
In 2011, the Exchange actively pursued
corporate governance initiatives and launched
new rules and regulations to enhance investor
protection features of the Exchanges’ rules,
while encouraging more listings and increasing
market liquidity. The Exchange intensified
its campaign to educate and assist listed
companies to strictly comply with the Disclosure
Rules. The Exchange further supported the
launch of the new rules and regulations with
a series of briefings for the stakeholders and
other market participants.
Amended Rule on Minimum Public
Ownership (MPO)
The Securities and Exchange Commission
(SEC) approved with some modifications on
December 19, the PSE Amended Rule
on Minimum Public Ownership (Amended MPO
Rule) that will give listed companies a grace
period until December 31, 2012 to comply
with the Exchange’s 10 percent MPO
requirement. The SEC declared the Amended
MPO Rule effective starting on January 1, 2012.
The Exchange previously reinstated the
MPO Rule as a continuing listing requirement
on November 30, 2010. This is in line with the
Philippine Capital Market Development Plan,
which aims to provide a fair and efficient facility
for price discovery and to ensure that sufficient
liquidity exists. This is also aligned with the
PSE’s goal to be at par with other exchanges
in the region and to address liquidity issues
in the local capital markets.
With the Amended MPO Rule, the Exchange
aims to balance the interest of all stakeholders
to ensure a more appropriate application
of these rules. So while the Exchange has
extended the compliance deadline to the end
of 2012 for affected listed companies, the
imposition of trading suspension was advanced
to as early as 2013 for companies that still fail
to meet the requirement after the grace period.
Companies which become non-compliant on
or after January 1, 2013 shall be suspended from
trading for a maximum period of six (6) months.
16 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
The company shall be delisted from
the Exchange registry if it remains non-
compliant after the suspension period.
Amended Rules on Listing
By Way of Introduction
The SEC approved on March 3, the Amended
Rules on Listings By Way of Introduction
(Amended LBI Rules), which was subsequently
declared effective starting March 24. The
temporary suspension of the LBI Rules
announced by the Exchange on February 18,
2010 is thus considered lifted subject to the
amendments approved by the SEC. The PSE
previously suspended the LBI Rules to pave
the way for a thorough review of the rules
and address the issues raised, including the
valuation, surrounding the companies that list
by way of introduction.
Under the Amended LBI Rules, a company
applying to list its securities by LBI shall
determine the initial listing price of its
securities on the listing date to be duly
supported by a fairness opinion prepared by
an independent and reputable firm. These
include investment banks, financial advisory
firms, and accounting firms duly registered
or licensed by the SEC and accredited by the
PSE. The Guidelines for Fairness Opinions and
Valuation Reports, one of the key features of
the Amended LBI Rules, is a vital step towards
enhancing investor confidence and protection.
The Amended LBI Rules also specify the
applicable lock-up requirements on the
securities of the applicant company. The lock-up
applies to to the applicant company’s existing
shareholders who own at least 10 percent
of the company’s issued and outstanding capital.
The Amended LBI Rules, likewise, lifts the
trading band on the listing late to allow market
forces to determine the price of the securities
of the applicant company.  After the listing date,
the trading band will be reinstated.
To ensure the compliance with the mandatory
public offering requirement pursuant to section
1(d) and 1(e) of the LBI Rules, the Amended LBI
Rules provide that the Exchange shall impose
any one or a combination of the following
sanctions should the company fail to conduct
the mandatory public offering within one (1)
year from listing:  (i) suspend the trading of the
company’s securities; (ii) sanction the company
by, among others, doubling the annual listing
maintenance fees payable by the company; or
(iii) subject to the provisions of the Corporation
Code and the rules and regulations of the
SEC, require the company to buy-back its
securities within ninety (90) days from the
lapse of the one-year period and delist the
company’s securities.
Lastly, the Amended LBI Rules prohibit
a backdoor listing prior to the conduct of
the mandatory public offering to prevent
any abuse of the rules by availing of its
benefits without a bona fide intention
to carry out the company’s business plans.
Guidelines for Fairness
Opinions and Valuation Reports
In support of the Amended LBI Rules,
the SEC likewise approved the Guidelines
for Fairness Opinions and Valuation Reports
(Guidelines) on March 3 which the Exchange
subsequently declared effective starting
March 24.
The Guidelines are applicable to listing
applications covering listings by way
of introduction, mergers and non-cash
transactions such as swaps, debt-to-equity
conversions, and other similar transactions.
Under the Guidelines, an applicant company
is required to submit a fairness opinion
covering the valuation of the shares subject
of the listing application covering any of
these transactions. The said fairness opinion
must be prepared by an independent PSE-
accredited firm and must be supported
by a valuation report. In addition to the
minimum standards for the fairness opinion
and valuation report, the Guidelines provide
the criteria for the accreditation of the firms
who are qualified to issue fairness opinions.
Since the implementation of the Guidelines,
the Exchange has accredited fourteen (14)
firms for purposes of issuing fairness opinions
and valuation reports (table 13).
Supplemental Listing and
Disclosure Requirements for
Petroleum and Renewable Energy
Companies
The Exchange, in collaboration with
the Department of Energy (DOE) and the
SEC, formulated industry-specific and
viable listing and disclosure requirements
for Petroleum and Renewable Energy
companies. The SEC approved on August 11,
the Supplemental Listing and Disclosure
Requirements for Petroleum and Renewable
Energy Companies (Supplemental
Requirements).
The collaboration on enhanced listing rules for Petroleum and Renewable Energy firms was firmed up with an agreement signing ceremony at the PSE.

Firms Who Are Qualified To Issue Fairness Opinions Table 13 Philippine Mineral Reporting Code
Accredited Firms Validity of PSE Accreditation and its Implementing Rules
and Regulations (PMRC IRR)
CLSA Exchange Capital, Inc. April 19, 2011 to April 19, 2012
The SEC approved the PMRC IRR on
Citicorp Capital Philippines, Inc. April 29, 2011 to April 29, 2012
September 30, 2010. Thereafter, the Exchange
Isla Lipana & Co. May 26, 2011 to May 26, 2012
fully implemented the PMRC IRR. The PMRC
First Metro Investment Corporation May 26, 2011 to May 26, 2012
IRR adopts the PMRC principles of materiality,
Manabat Sanagustin & Co., CPAs June 13, 2011 to June 13, 2012
transparency and competency. The IRR provides
Manabat Delgado Amper & Co. July 14, 2011 to July 14, 2012
listed mining and exploration companies,
Unicapital, Inc. July 28, 2011 to July 28, 2012
and those applying to list on the Exchange,
ATR KimEng Capital Partners, Inc. July 28, 2011 to July 28, 2012
Punongbayan & Araullo August 11, 2011 to August 11, 2012
with implementing guidelines and pro-forma
Multinational Investment Bancorporation August 11, 2011 to August 11, 2012
outlines for complying with the reporting
ING Bank N.V., Manila Branch September 29, 2011 to September 29, 2012 standards provided in the PMRC. It aims
UBS Investments Philippines, Inc. November 24, 2011 to November 24, 2012 to protect the investors by prohibiting the
BPI Capital Corporation January 12, 2012 to January 12, 2013 disclosure of misleading information and by
BDO Capital & Investment Corporation February 9, 2012 to February 9, 2013
requiring, among others, the full disclosure of
material information, including but not limited
to the economic viability of the property and
Thereafter, the Exchange launched the through additional disclosure requirements,
a detailed report on the mining company’s
rules on September 8. With a signing of a provide investors with meaningful and
Environment Protection and Management
Memorandum of Agreement among comprehensive understanding of petroleum
Plan as well as its Community Development
the Exchange, DOE and SEC to reinforce and renewable energy assets, resources and/ Plan. This reporting requirement also allows
their respective commitments to further or reserves to protect the investing public from stakeholders to have access to information on
develop the petroleum and renewable irregular and unregulated reports concerning the practices of listed mining firms with respect
energy industries and at the same time,
declaration of potential, possible or probable to sustainable and responsible mining.
spur more listings and activity in the
petroleum and renewable energy resources and The PMRC sets minimum standards and
local capital market.
reserves. guidelines for Public Reports of Exploration
In crafting the new rules, the Exchange
In general, petroleum and renewable energy Results, Mineral Resources, Ore Reserves, and
noted that petroleum and renewable
companies intending to apply for listing on the Metallurgical assessments and design related
energy firms interested to participate in the to mining in the Philippines. The formulation
exploration and development of Philippine Exchange should be compliant with the general
of the PMRC relied on the international codes
oil and gas resources and renewable energy listing requirements in the Second Board
from Australia, particularly the Joint Ore
technologies were hindered by the rules Listing Rules together with the Supplemental
Reserves Committee (JORC) Code (2004)
of the Exchange in obtaining additional Requirements. Further, applicant petroleum of Australia, South Africa, European Union,
funds from the local capital market for the and renewable companies who fail to meet Canada and the International Reporting
exploration and development the operating history requirement shall be Template (2006) by the Committee for Mineral
of such energy-based resources. deemed compliant with the said requirement Reserves International Reporting Standard.
The Supplemental Requirements relax upon compliance with the Supplemental
the one-year operating history requirement Requirements. These requirements are also Listing and Disclosure Rules Seminars
under the Second Board Listing Rules of the applicable to listed companies which will The Exchange also conducted a series of
Exchange to allow the listing of petroleum undertake capital-raising activities such as, seminars in December 2011 on the Listing and
and renewable energy companies. but not limited to, follow-on offerings or stock Disclosure Rules for the respective Compliance
Further, the Supplemental Requirements, rights offerings. Officers and Corporate Information Officers of

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 17
 listed companies. The seminars highlighted
the new and amended rules and regulations
as well as the frequently violated provisions
of the Disclosure Rules. The Exchange also
stressed the responsibilities of the directors Expand &
and principal officers of listed companies.
These annual seminars form part of the
continuing efforts of the Exchange to encourage
E Educate the
Investor Base
and assist listed companies in establishing good
disclosure and compliance practices to ensure
full compliance with the rules of the Exchange.
The Exchange also conducted briefings
on the Supplemental Listing and Disclosure
Requirements for Petroleum and Renewable
Energy Companies and the Implementing Rules
and Regulations of the Philippine Mineral
Reporting Code (PMRC) attended by the listed
companies, legal counsels, financial advisors
and other market participants.
The DOE and the PMRC Committee, as the
resource speakers for these briefings, effectively
provided clear and valuable guidance for the
stakeholders for these new rules.
MARKET EDUCATION
Delisting of Companies
The PSE remains fully committed to its mission More Focused Market
Pursuant to the Delisting Rules of the
Exchange, the Exchange delisted the following
of increasing Filipinos’ awareness of and Education Campaigns
participation in the local equities market by In order to have a more proactive and
listed companies from its Official Registry
providing a wide range of marketing and market effective market education campaign, the
effective March 10:
education programs to every Filipino who is PSE has profiled its target audience for its
willing to learn and succeed in stock investing. activities. Through marketing workshops
1. Banco Filipino Savings
and Mortgage Bank The PSE, through its market education and market research exercises, the PSE has
2. Mondragon International initiatives, further strengthened its campaigns focused its education activities to what it
Philippines, Inc. in 2011 by launching innovative programs calls “Investor Grade Filipinos.” This specific
that are designed to educate and encourage market is generally composed of Filipinos
3. Sanitary Wares Manufacturing
Corporation Filipinos not only about the benefits of stock 25 years old and above, earning P30,000
investing but also the essential role of the or more. This market is estimated to reach
4. Universal Rightfield Property
Holdings, Inc. equities market in the Philippine economy. about 6.3 million, of which seventy percent
of this number is concentrated in key
5. Wise Holdings, Inc. PSE’s market education initiatives have
Philippine cities like Metro Manila, Cebu,
reached and educated over 75,000 individuals
Davao, Cagayan de Oro (CDO), and the
(Fig. 4) surpassing by 108 percent its feat in
This move was mainly intended to ensure Greater Manila Area.
2010. This exponential growth can be attributed
that the rules of the Exchange are enforced
to the following: The PSE carried out several impact
for the protection of the investing public.
seminars for this specific market segment.
1. An aggressive but more focused PSE launched in 2011 a monthly seminar
marketing and market entitled, “Building Wealth with Stocks,”
education stance; specifically designed for this sector.
2. An institutionalized and expanded Seminars for top corporations, business
reach in the academe sector; clubs, industry associations, and several
3. A more effective use of free media other target organizations were also held
advertising and the internet; in partnership with brokers and interest
4. A marketing presence in Cebu City; and groups. The PSE and its multiplier partners
5. An intensified working collaboration also conducted monthly short courses with
with multiplier partners. participants from various socio-economic

18 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
sectors. These seminars directly reached
over 20,000 participants.
PSE campaigns for this sector paid off
handsomely as data provided by the PSE
Research Department showed that the total
number of actual trading accounts in the
Philippines went up by 6 percent year-on-
year.
InVEST! - PSE Integrated Viral
Education Strategy
The PSE introduced and institutionalized
a marketing campaign, dubbed PSE InVEST!,
or Integrated Viral Education Strategy,
which basically leverages on the growing
popularity of the social media platform.
The PSE has introduced a standalone
market education website and took the
campaign into cyberspace. PSE’s presence in
the Internet, through its corporate website
and social sites like Facebook and Twitter,
is expected to create exponential growth
in the campaign’s visibility and effect.
Blogospheres, webinars, podcasts,
and other free media will also be tapped
as component projects of this campaign.
PSE InVEST! shall become the nucleus
of PSE’s market education initiatives.
The PSE shall devote most of its efforts
and resources for this campaign. Existing
campaigns will also be mobilized to ensure
that goals are met through this strategy.
Market Education Activities vs Number of Individuals Directly Reached Figure 4
500
Number
400
of Market
Education
Activities
300
200
100
0 0
94 95 96 97 98 99 00
Launch of the PSE Academy Website
and Social Media Marketing
In line with PSE InVEST!, The Exchange
launched on September 5 a stand-alone market
education website named, the “PSE Academy”.
This can be accessed through www.pseacademy.
com.ph.
The PSE Academy provides a comprehensive,
interactive, and practical web-based investor
education for market participants, would-be
equity investors, and the public in general.
One of the key features of the website is
the e-Learning section, which allows users to
enhance their knowledge on stock investing and
eventually acquire new trading skills through
accessing downloadable reading materials and
video books for free. Also part of the e-Learning
component are materials that furnish market
practitioners with information on securities
licensure and certification examinations, stock
market courses and trainings.
Aside from these, a key innovation is Market
Talk, an interactive tool that allows users to
gather and participate in discussions concerning
issues related to the capital markets, and to
positively find solutions to various investing
challenges.
Number of
Individuals
Reached
01 02 03 04 05 06 07 08 09 10 11
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Additional features like webinars, podcasts,
and an investment calculator will be integrated
in the website before its full launch in 2012.
As of December 2011, the website had
enjoyed 45,905 page views and 10,891 visitors
from 16 different countries.
Riding on the popularity of social media
in the country today, the PSE also launched
in 2011 its own Facebook and Twitter accounts
where would-be and existing investors can
get updates, announcements, news about
the Exchange, seminar schedules, and other
market education information. These social
media accounts had close to 5,000 friends and
followers, respectively, as of December 2011.
Launch of the PSE Satellite
Office in Cebu
Realizing the need to further propagate stock
investing all over the archipelago, the Exchange
successfully launched in September 2011 its
first satellite office in Cebu City to serve as
the staging ground for various capital market
developmental activities directed in the Visayas
region.
It aims to provide education for prospective
investors by bringing the trading participants
and other market participants closer to the
region. In particular, the Cebu Office has booths
where trading participants may deploy agents
who may undertake marketing and sales
activities jointly with the PSE for prospective
Cebuano and other Visayan investors.
The satellite office is located at the second
floor of the Insular Life Cebu Business Centre,
Mindanao Avenue corner Biliran Road, Cebu
80,000 Business Park, Cebu City.
PSE also intends to increase its presence
70,000
in other key Philippine cities like CDO and
Davao in 2012 and 2013, respectively. The Cebu
60,000
Satellite Office and future sites will be utilized
not only as a trading venue but also as a
50,000 financial and investment learning center where
every Filipino can learn personal finance and
40,000 investment strategies.
30,000 Launch of the PSE-Lyceum
MBA, Major in Capital Markets
20,000 The Exchange collaborated with the Lyceum
of the Philippines University – Manila, Claro
10,000 M. Recto Academy of Advanced Studies, for the
launching of a Master of Business Administration
(MBA) program specializing in Capital Markets.
19
 Market Education by the Numbers Figure 5
450
3,000,000 Market education
Potential viewers worldwide events in 365 Days
of PSE Stock Market Segment
over ABS CBN News Channel
45,905
PSE Academy page
450,000
BSBA students required to take
views from
16 Countries up Capital Markets Subject
75,000
Individuals reached
in 2011, 108% growth
rate year-on-year
This fast-paced 42-unit MBA is conducted
on weekends and may be finished in four
trimesters. The program gives special credits to
market participants with a considerable number
of professional experience in the stock market
and also to graduates of the PSE Certified
Securities Specialist Course (CSSC). In contrast
to the CSSC, this MBA program employs team
teaching and makes full use of actual field work
more than class room instruction. An industry
paper work is likewise required for each student,
which must be functional and useful in actual
practice by any market related institution. The
classes are conducted at the Lyceum campus
situated in Makati City.
The program started in May of 2011 with 32
enrolled students.
This complements the programs of the
Exchange for young Filipinos whom it considers
the future drivers of the Philippine equities
market and the capital markets as a whole.
Launch of the PSE Academe Week
The PSE consolidated most of its promotional
campaigns for the academe through a project
called “The PSE Academe Week,” a multi-faceted
literacy campaign on stock investing
for students and teachers.
The PSE Academe Week 2011 was conducted
from September 5 to 10 in partnership with
PSE Market Education Department’s apprentice
group PSE Blue Chip Club, and national student
organizations, namely, Council of Economics
Students, Junior Philippine Economics Society,
and Bedan Business Spectrum Foundation.
Table 14 shows the components of the
project and the total attendees for each.
20 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Components and Attendees of the PSE Academe Week Table 14
NO. ACTIVITY / EVENT NO. OF ACTUAL PARTICIPANTS
1 Stock Market Seminar for Educators 31 educators
2 Stock Market Seminar for High School 12 students
3 Stock Market Seminar for College – 1st Run 356 students
4 Stock Market Seminar for College – 2nd Run 211 students
5 Listing Seminar and Career Talk 233 students
6 Fundamental and Technical Analysis Seminar 274 students
7 College Economics and Capital Markets Quiz Competition 22 schools
8 High School Economics and Capital Markets Quiz Competition 6 schools
9 Poster Making Contest
10 Digital Photo Contest
29 entries
22 entries
11 Infomercial Making Contest 2 entries
12 Stock Trading Tournament 19 teams
13 Exhibit 100+ visitors
One of the main highlights of the PSE This project enjoyed the support of the
Academe Week was the conduct of the Department of Education, The Philippine
Economics and Capital Markets Quiz Bee Council of Deans and Educators in Business,
for College and High School. The collegiate and the Capital Markets Institute of the
leg was participated by 22 colleges and Philippines.
universities in the Philippines, the most number
of participating schools since its launch in PSE’s Regular Market
2008. On the other hand, the high school Education Programs
quiz competition was joined by six national
Aside from the new programs it launched
secondary educational institutions. (Table 15).
in 2011, the Exchange will continue all
The PSE Academe Week also introduced
other projects it started in the past years.
creative competitions such as photo, poster
The PSE’s market education projects and
making, and video production contests geared
events have been organized into three main
towards tapping students’ appreciation of the
stock market through arts. The finalists for categories enumerated below:
the creative contests were displayed for public 1. SHORT TERM “AWARENESS”
viewing through a week-long exhibit at the PSE CAMPAIGNS or “below-the-line”, non-
Ayala Gallery. traditional marketing activities intended
Seminars on stock investing, listing, and to attract large numbers of participants
careers in the capital markets were conducted who are enticed to join the PSE’s medium
at San Beda College in Manila, University of the and long term market education programs
where the benefits of stock investing are
Philippines Engineering Theatre in Quezon City,
and the PSE Trading Floors in Pasig and Makati. emphasized.
Winners of the Economics and Capital Markets Quiz Bee Table 15
College High School
Champion Champion
San Beda College Junior Financial Executives General Pio del Pilar National High School
Christian Decasa Jessica Cabo
Ariel Gabriel Martin Magsino Lorrie May Ilagan
Francis Lorenz Medina Paul Adrian Ilasin
2nd Prize 2nd Prize
UP Economics Towards Consciousness Rizal High School
Ana Isabel Eslava Ma. Chrislyn Aberin
Rachel Malaluan David John Nolasco
George Douglas Siton Marvin Jay Robin
3rd Prize 3rd Prize
UST Junior Financial Executives Manila Science High School
Lisse Anne Bertumen Marc Kenneth Cagili
Bea Faller Carl Angel De Luna
Justin Notario Luigi Dela Peña
 2. MEDIUM TERM “IMPACT” PROGRAMS
on the other hand are learning events,
which encourage individuals to gain
more knowledge about stock investing.
Participants are mostly reached through the
Short Term “Awareness” events and standard
communication channels.
3. LONG TERM “CORE AND FOUNDATION”
programs are innovative initiatives
designed to yield lasting results. Mostly
academe-based, these programs are aimed
at addressing the rudimentary problem of
a lack of stock market awareness among
Filipinos. This program also provides
continuing education courses for market
participants and serious investors.
01
04 05
09 10
1 A Stock Market Seminar was conducted by the PSE in
partnership with Ephesians Management Corp.
2 The new satellite office of the PSE in Cebu
3 The PSE – Regina Capital Development Corp. stock
market seminar for investors was held at the new PSE
satellite office in Cebu.
4 Thirty-two students were enrolled in PSE-LPU MBA in
Capital Markets Program.
5 San Beda College Junior Financial Executives clinched
the championship during the 4th PSE Economics and
Capital Markets Quiz Bee.
LONG TERM “CORE AND FOUNDATION”
PROGRAM
1. PSE Satellite Office – Cebu
2. Integration of Stock Market topics in High
School Curriculum
3. Integration of “Savings & Investments” The project kicked off with the creation of a
subject in College General Education
4 Implementation of Commission on Higher
Education (CHED) Memorandum Order 39
(CMO 39)
5. Institutionalization of MBA Program biggest public high school in the Philippines,
Specializing in Capital Markets
6. PSE Certified Securities Specialist Course
02
06 07
11
6 General Pio del Pilar National High School wins the
3rd PSE Economics and Capital Markets Quiz Bee
Championship.
7 St. Stephen High School emerged as the winner for the
PSE’s first poster making competition.
8 A photo, entitled, “Plastics, Papers and Stocks,” also
emerged as the winner for the PSE’s first photo
competition; These creative activities were showcased
during the PSE Academe Week (See images 11 and 12).
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Integration of Stock Market Topics
in High School Curriculum
In January 2009, the PSE and the Department
of Education (DepEd) have agreed to jointly
develop a module, which will integrate a stock
market segment in the high school curriculum,
particularly in the senior Economics subject.
composite team of PSE and DepEd curriculum
writers and validators who took on the task of
developing a “Teacher’s Guide”, which was swiftly
completed in September 2009. A successful
pilot testing ensued on November 9, 2009 in the
Rizal High School located in Pasig City.
In 2010 and 2011, the PSE and DepEd have
03
08
12
9 Workshops and quiz bees for high school students were
conducted in preparation for the integration of stock
market topics in secondary education.
10 PSE conducted its nationwide Book Drive and Stock
Market Seminar for the Pasig Catholic College.
11-12 The PSE launched the Academe Week in a ceremony
led by PSE Chairman Jose T. Pardo and Philippine
Council of Deans and Educators in Business (PCDEB)
President Dr. Amado Magsino.
21
 successfully completed nationwide validation
sessions aimed at assessing the effectiveness
of the stock market module and its lesson
guide for teachers. This was done through a
series of roadshows in key cities all over the
Philippines covering more than 700 students
and 30 academic officials from six (6) private
and national public high schools.
During the validation roadshows, the PSE
also took the opportunity to distribute its
investor’s primer entitled, “Building Wealth
with Stocks: A Basic Guide to Investing in the
Philippine Stock Market,” and video CD materials,
which will serve as supplementary educational
materials for the faculty and students.
In the latter part of 2011, several
enhancements were undertaken to the Teacher’s
Guide following a mandate by the government
to implement the Kindergarten+12 (K+12) Basic
Education Program.
The progress of the PSE and the CHEdin
institutionalizing a required “savings and
investments” subject in college general
education will now be integrated along
with the initiatives pursued for high school.
This new strategy is expected to further broaden
PSE’s reach in formalizing stock investing
education to younger Filipinos.
Furthermore, the Teacher’s Guide will
be distributed nationwide while faculty
development seminars will also be conducted
to train educators on how to teach students
about the stock market.
Upon completion of these exercises, the
module should be ready for implementation
in the next school year (2012-2013). The
program is expected to cover a total of 10,066
public (5,359) and private (4,707) high schools
nationwide reaching approximately 6.76 million
(5.42 million public and 1.34 million private)
students and 2,180 higher education campuses
nationwide with an estimated enrollment 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 number 39, Series of 2006
(CMO 39). This program institutionalized an
enhanced business administration curriculum
22 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
that includes among others “capital markets”, in 2011 jointly by the PSE and its partner
a subject required for all financial management schools such as the curriculum review. Its
students. The curriculum contains an improved principal objective was to calibrate course
“basic finance” subject and a stock market modules with the ideal competencies
segment. This standalone course is expected of a successful graduate. Furthermore,
to educate more than 450,000 business classroom learning is complemented with
administration students nationwide. various exposure activities, which include
To further support the components stock market seminars, industry briefings,
of the PSE’s long term core program of seminar and hands-on training on the
institutionalizing stock market subjects in PSEtrade, PSE tour, and stock brokerage
firm visits.
college education under CMO 39, the PSE
partnered with the Philippine Council of Deans The program has already produced a
and Educators in Business for a “Book Drive” total of 197 CSSC title holders out of the
project. The project aimed to endow selected 429 enrollees.
private and public colleges and universities To further enhance the course, the PSE
nationwide with a package of books, videos also pursued continuous expansion of faculty
and other learning materials, which will form pool and partnerships with technology and
a stock market section in their respective information providers Thomson Reuters,
libraries. There were 22 recipient schools Bloomberg, and Technistock. Future plans
in 2011. for the program include inviting experts
from other stock exchanges to form part
of the faculty pool as well as conducting
The PSE Certified Securities Specialist
corporate runs with top private corporations
Course (CSSC)
and government financial institutions and
The PSE CSSC is envisioned to provide provincial runs.
continuing education for market participants.
Launched in December 2006, the PSE CSSC
Capital Markets Institute of the
is a 138-hour certification course on financial
Philippines
market theories, valuation techniques, analysis,
management, ethics, regulations, and market PSE further strengthened its partnership
dynamics. with the Capital Markets Institute of the
Philippines (CMIP) through various projects
The PSE CSSC is comprised of twelve (12)
geared towards wider market education.
modules (with two pre-requisite subjects) and
covers an intensive learning process. Academic The CMIP formally inducted its new set
performance is measured through written of board of directors and officers, led by
examinations. PSE Assistant Vice President and Head for
Capital Markets Development Division Leo G.
PSE completed three (3) runs in 2011.
Below is the breakdown: Quinitio as President, in a ceremony graced
by PSE President and CEO Hans B. Sicat at
1. 5th PSE-Ateneo CCE CSSC with 51 the PSE Ayala Board Room on March 31.
enrollees of which 28 graduated
The PSE and CMIP continue to jointly
with the title “Certified Securities
conduct the successful Capital Markets
Specialist.” Graduation ceremony
Investment Teaching Accreditation Program
conducted on October 14, 2011
(CMITAP). Now on its sixth run, the CMITAP
at the PSE Ayala Trading Floor.
seeks to hone the knowledge and skills of
2. 1st PSE-UST CCPED CSSC with college professors in teaching investments
28 enrollees of which 16 graduated. and capital markets to students. Participants
Commencement exercises held underwent a week-long camp at The Farm
on May 14, 2011 at the PSE Ayala in Cavite and received their certification as
Trading Floor. accredited capital market educators in a
3. 2nd PSE-UST CCPED CSSC with 49 ceremony held on May 27 at the PSE Ayala
enrollees. Graduation ceremony Trading Floor.
to be scheduled in 2012. In partnership with the CMIP, the PSE
Course improvements have been undertaken also conducted a stock market short course
entitled “Earn and Learn Stock Investing
Workshop and Seminar” from October 18
to 21 at the Southville International Schools
and Colleges in Las Piñas. The 4-day learning
session gathered 16 participants from the
academe community.
MEDIUM TERM “IMPACT” PROGRAM
1. Seminars for Target Sectors
• PSE Monthly Seminar “Building
Wealth with Stocks”
• Short Course on Stock Investing
• Joint projects with Trading
Participants & Interest Groups
2. Local Stock Market Roadshows
3. Industry and Economic Briefings
4. The PSE Academe Week
• National Economics
& Capital Markets Quiz Bee
• Stock Trading Tournaments
• Best Thesis Competition
• Infomercial, Photo and Poster Making
Competition
• Stock Investing Workshops with feature articles about stock investing and
for the Teachers and Students
Local Stock Market Roadshows
Most of PSE’s provincial roadshows in
2011 were held in Cebu primarily to promote
its newly established satellite office in the
city. Aside from Cebu, it also conducted
campaigns in Baguio, Cagayan de Oro, Davao,
Laguna, and Iloilo.
The roadshow seminars were attended
by high net worth individuals and
businessmen who may have interest in
listing their companies on the PSE. Trading
participants with branch offices in roadshow
destinations also conducted marketing
activities and consultations sessions with
prospective investors during the roadshows.
Industry and Economic Briefings
These briefings aim to apprise market
practitioners, investing community, and other
stakeholders about the PSE, stock market,
and the economy.
Quarterly industry briefings were also
accomplished by MED covering four different
industries:
• Capital-Raising in the Overseas Market
• Real Estate Investment Trusts
• Commodities
• Singapore Financial Sector
The PSE also served as a major partner
of the Bangko Sentral ng Pilipinas for the
conduct of its semi-annual economic briefings.
• PSE-BSP Year-End Economic Briefing were also launched.
on Feb 9, 2011 at Dusit Thani Hotel
• PSE-BSP Mid-Year Economic Briefing on
September 30, 2011 at the PICC Hall
The economic and industry briefings gathered
over 2,000 participants.
Stock Trading Tournaments
The PSE conducted three national stock
trading tournaments for students and teachers
in partnership with the Absolute Traders, Bank
of the Philippine Islands (BPI) Asset
Management, and First Metro Investment
Corporation (FMIC).
This online trading competition gives
participants a feel of the real stock market
through a dedicated Internet engine where
one can buy and sell shares of stock with other
players employing actual market prices.
The following national competitions were
conducted in 2011, namely:
1. PSE-BPI Clash of the Universities Equity PSE Academy, www.pseacademy.com.ph.
Challenge;
2. 1st PSE-FMIC-Catholic Educators PSE Bull Run: Takbo Para
Association of the Philippines Stock X Sa Ekonomiya 2011
Challenge; and
3. Absolute Traders Online Stock Market
Challenge.
Close to 5,000 participants joined the
nationwide stock trading leagues and these
were complemented by seminar roadshows
conducted in Manila, Baguio, Cebu, and
Davao. Trophies, cash prizes, and PSE course
scholarships were awarded to top winners.
SHORT TERM “AWARENESS” PROGRAM
1. The PSE Academy Website
2. TV, Radio, Print, and Social Media audiovisual presentations. For the year, the PSE
Campaigns
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
3. The PSE Bull Run
4. Expositions and Exhibits
5. Exchange Tours
TV, Radio, Print Campaigns
Apart from PSE’s regular seminars and stock
investing learning sessions, cost effective and
far-reaching multi-media campaigns in 2011
The 10-minute segment within the TV
program “Mornings at ANC, Stock Market 101”
aired over ABS CBN News Channel (ANC) every
Friday from 9:30 to 9:45 AM, featured close
to 60 stock investing topics in 2011.
This segment could reach up to 3 million
viewers globally according to the Business
Development Department of ANC.
The PSE has also endeavored to penetrate
corporate websites and newsletters to reach
more prospective investors. Partnerships with
leading broadsheets such as the Business Mirror,
Business World, and the Manila Times were
also pursued in order to provide their readers
trading tournaments. These media outfits have
an estimated readership of over 1 million.
The PSE also developed various print and
video materials on stock investing and other
investment products. All these materials were
converted into digital format and can be
downloaded free of charge through the
The PSE Bull Run was held at the Bonifacio
Global City last January 9 with about 6,000
registered runners. This year marked the
introduction of a 10-mile or a 16K race category.
The huge turnout of participants, aside from the
thousands of fun runners, accounted for a 20%
increase from the previous year’s Bull Run.
Expositions & Exhibits
The PSE joined several expositions and
trade exhibits by putting up booths and
conducting marketing activities like leafleting,
on-line trading demonstrations, short talks and
was able to participate in the Finance Expo
23
 01
05
1 Graduates of the 5th PSE-Ateneo CCE Certified Securities
Specialist Course numbered 28 in 2011.
2 The CMIP inducted its new set of directors and officers in a
ceremony at the PSE.
of DLSU MaFIA, AIM Stock Market Expo, IDEA
Mid-Year Economic Briefing, Exhibit at the PCCI
Briefing and the Kiddo-preneur Bazaar.
Exchange Tours
Tours and stock market briefings at the
Exchange premises in Tektite and Ayala were
conducted for about 300 groups ranging
from foreign and local colleges, universities,
corporations, institutions and
other organizations.
Marketing Services
The PSE and FTI Consulting, Inc., which
provides corporate finance, restructuring,
forensic accounting, litigation support, and
investigative services, conducted a listing
seminar for new associates and partners on
February 14.
Furthermore, in line with its marketing
efforts, the PSE, ATR-Kim Eng Capital Partners,
the SEC and DOE conducted a symposium
for lawyers and clients of the CVC Law (Cruz,
Villaraza, Marcelo, and Angcangco) entitled
“Riding the Energy Wave” on August 8. The
participants were initiated into the parameters
of new guidelines for listing of petroleum and
24 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
02 03
06 07
3 Team UPD Gurus was awarded the grand prize of the 1st
Stock X Challenge by PSE and First Metro Investment
Corporation.
4 The PSE joined Centro Escolar University (CEU) in a simple
ceremony held last November 15 celebrating the latter’s
25th listing anniversary.
renewable energy companies.
The PSE and the DOE conducted an
afternoon session seminar on November 29
on the supplemental listing and disclosure rules
that govern petroleum and renewable energy
companies.
As a follow up to this discussion group,
the PSE and the Chamber of Mines of the
Philippines conducted a morning session forum
on the implementing rules and regulations
of the Philippine Mineral Reporting Code
also on November 29.
The PSE and the Development Bank of
the Philippines (DBP) conducted a whole day
conference on March 1 entitled, “SME Listing
in the Philippine Stock Exchange,” which
targeted small and medium enterprises,
the backbone of the Philippine economy.
Marketing endeavors were not just restricted
to the National Capital Region (NCR)-based
companies, but also brought to the Visayas
and Mindanao. The recent opening of the Cebu
satellite office and the Memorandum
of Cooperation between the PSE and the Cebu
Chamber of Commerce and Industry, Inc. reflect
that more companies outside of Manila are
becoming major players in their respective
industries and are ripe for enticing to go public.
04
5 Pacifica, Inc (PA) rings loudest and longest on its 50th
Listing Anniversary.
6 RCBC celebrates its silver listing anniversary.
7 Runners at the 7th PSE Bull Run mill at the starting
line for the gunstart. PSE President and CEO Hans Sicat
participated in the 10K race.
Listing Anniversaries
• 50th Listing Anniversary of Pacifica, Inc.
• 25th Listing Anniversary of Centro
Escolar University
• 25th Listing Anniversary of Far Eastern
University
• 25th Listing Anniversary of Rizal
Commercial Banking Corporation
• 5th Listing Anniversary of Metro Pacific
Investments Corporation
• 5th Listing Anniversary of Alliance Select
Foods International, Inc.
• 5th Listing Anniversary of
CitisecOnline.com, Inc.
PSE Publications
The Exchange continues to provide
investors with valuable and up-to-date
market facts and figures through its regular
publications – the weekly and monthly
market reports, and the PSE Fact Book.
The Exchange also provides free
and processed information to guide the
investing public in their decisions through
the PSE Weekly Market Watch and the
PSE Quarterly Top 50, both of which may
be accessed on the PSE website. The PSE
Weekly Market Watch provides information
on the top gainers and losers on a weekly
basis, while the PSE Quarterly Top 50
publishes the top performing companies in
terms of income, revenues, return on assets
and equity, price performance, and other key
corporate financial information.
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 aims
to provide a vivid snapshot of the investing
public as well as to help the Exchange
monitor its progress in attracting investors.
Results of the survey conducted in 2010
showed that there were a total of 498,838
accounts, up by 4.8 percent from 476,194
accounts a year earlier. Of the total number
of accounts, 95.0 percent or 474,002 were
retail accounts, while 5.0 percent or 24,836
were institutional accounts. Local accounts
comprised 98.5 percent of the total
accounts as against the foreign accounts’
1.5 percent share. Active accounts, or those
that traded at least once during the year
under study, increased by 10.8 percent
from 108,310 accounts in 2009.
The number of online accounts
meanwhile increased by 25.8 percent to
35,559 from 28,261 accounts a year earlier,
with retail investors still the key market
for online trading. Active online accounts
amounted to 34,933 or 98.2 percent of
the total online accounts. Local investors
owned majority of the total online
accounts at 96.9 percent, while foreign
investors cornered 3.1 percent.
Profile of Retail Investors by Income Figure 3
(Total 100%)
More than P1 million
36.7%
P500,000 to
P1 million
34.2%
Less than P500,000
29.1%
Results of the study particular to retail
investors revealed that 36.7 percent were
individuals earning more than P1 million yearly.
A little over one-third of retail investors had
an annual income of between P500,000 to
P1 million, while the remaining 29.1 percent
earned less than P500,000 (Fig.3). In terms of
age, 42.7 percent of investors were between 45
to 59 years old, while investors aged 30 to 44
comprised 31.2 percent of retail investors. Most
retail investors were professionals and were
engaged in the services sector, which comprised
18.6 percent and 37.7 percent of retail investors,
respectively. Based on geographical location,
majority or 78.3 percent of the retail investors
reside in Metro Manila. Luzon had a 14.4
percent share of retail investors, while Visayas
and Mindanao had 4.3 percent and 1.8 percent,
respectively.
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. Annual Report 2011 Conquering Formidable Frontiers 25

Enforce
Corporate
Governance
Standards
Corporate Governance,
Risk AND Compliance
The year 2011 saw the Exchange continuing
its Corporate Governance Improvement
Program, 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. As a corporate entity and as
a regulatory body for its constituents, the
Exchange also launched and continued several
projects this year with the goal of promoting
corporate governance in the market.
PSE Manual on Corporate Governance
The PSE revised and updated its Manual
on Corporate Governance (CG Manual). The CG
Manual aims to institutionalize good corporate
governance principles within the PSE. It is
directed towards the PSE’s Board of Directors,
management, employees, and stockholders
for their awareness and compliance with best
practices and principles of good corporate
governance to aid in the attainment of PSE’s
corporate goals.
The CG Manual also embodies the principle
of full, fair and timely disclosure of material
information and contains provisions designed
to allow investors to exercise their rights
as shareholders.
PSE Compliance Plan
The PSE documented and formalized its
regulatory compliance procedures by putting
together an integrated and comprehensive
institution-wide Compliance Plan.
The Compliance Plan covers all submission
and regulatory requirements of the PSE both
26 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Value &
V
as a listed company and as a regulatory body.
It streamlines and makes uniform the reporting
procedures of each PSE department, establishes
compliance accountabilities and provides for a
formal mechanism that will monitor the timely
and accurate filing of all necessary submissions
required under the law.
The PSE Bell Awards
On December 7, the PSE officially launched
the PSE Bell Awards for Corporate Governance
(Bell Awards). The Bell Awards aims to recognize
listed companies and trading participants
for their outstanding corporate governance
practices and rule compliance.
The Bell Awards is divided into two (2) parts:
an award recognizing the top five (5) listed
companies and another for the recognition of
the top three (3) trading participants each under
the large and small categories. The awarding
ceremony will be held in November 2012.
The basis for the evaluation and qualification
of listed companies shall be their observance
of the corporate governance guidelines and
best practices under the “Corporate Governance
Guidelines for Listed Companies on the PSE”
Handbook, issued in 2010, and their compliance
with PSE and the SEC rules, as well as all other
relevant laws, rules and regulations. Trading
participants, on the other hand, shall be
evaluated based on the results of their
regular and spot regulatory audits as well
as compliance with PSE and SEC rules
and other regulations.
All listed companies and trading participants
are eligible for the Awards upon submission
of the annual CG Disclosure self-assessment
for listed companies and completion of the
regulatory audit for trading participants.
The final list of awardees shall be decided
by an independent panel of judges
composed of distinguished corporate
governance advocates and market
representatives.
The Maharlika Board
The Exchange sustained its efforts
to establish the Maharlika Board (MB),
a special listing segment of the PSE which
will distinguish listed companies that
will voluntarily abide by certain corporate
governance standards beyond those already
required by law. The MB is expected to
increase reputational value for issuers,
lower investor perceptions of risk in both
individual listed companies and across
the market as a whole, as well as change
local corporate attitudes towards corporate
governance from a compliance requirement
or cost to an important comparative market
advantage.
In January, the Exchange entered into
a Memorandum of Understanding (MOU)
with the International Finance Corporation
(IFC) under which the IFC, through its
Global Corporate Governance Forum, was
to provide technical assistance to the
Exchange to facilitate the launch and proper
operation of the Maharlika Board. Under
this MOU, and further to the development
of the rules that will govern the listing and
disclosure requirements for the Maharlika
Board (MB Rules), the Exchange formed
a Maharlika Board Working Group, composed
of senior market representatives and
corporate governance advocates, which
met on a regular basis to review the draft

01
1 The Philippine Stock Exchange launched the PSE 2012 Bell Awards for Corporate Governance last December 2011.
2 The PSE Bell Awards Poster
of the MB Rules, help develop marketing
strategies for the promotion of the MB,
and generally provide oversight function
over the Exchange’s MB-related activities.
Under the Working Group’s supervision,
and after extensive consultations with
various stakeholders, including both listed
companies and investors, the MB Rules
underwent several revisions until its current
version was issued for approval by the
Exchange’s Board of Directors.
Concurrent with the review of the MB
Rules, the Exchange also helped organize
various forums on the MB to develop
market interest:
• IFC-ICD-PSE Business Investors
Dialogue, March 22, 2011
• Joint FMAP-TOAP-PSE Forum, processes likewise necessitated the creation of
April 29, 2011
• FINEX Good Governance Committee updating the SOPs in 2011 and is scheduled to
Forum, Sept. 20, 2011
02
The Exchange also conducted one-on-one
meetings with various MB target companies to
address their issues on the MB, clarify MB Rule
provisions and requirements, and encourage
them to list on the MB. The Exchange will
continue with these meetings in 2012.
Update of Standard Operating
Procedures
The process of documenting and updating
the processes and systems of the Exchange
was completed in 2010. However, because of
changes in procedures, upgrades of technical
systems and other internal developments, the
Standard Operating Procedures (SOPs) of some
departments required revisions and updating,
while the introduction of new systems and
new SOPs. The Exchange began the process of
be completed by 2012.
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Market Regulation
Trading Participants Regulation
The PSE completed its annual regulatory
examination of the books and records of
68 active trading participants including 20
branches and agency offices. The PSE also
conducted monthly spot audit of selected
trading participants to verify their compliance
with specific provisions of the Securities
Regulation Code (SRC), its implementing
rules and regulations and the Risk Based
Capital Adequacy (RBCA) rules. The results
of the examinations showed an improvement
in the trading participants’ compliance with
the relevant provisions of 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 in the first
quarter of 2012.
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 8 and a list of
commonly violated rules and recommendations
in 2010 was published on the PSE’s website
on May 31.
Pursuant to a directive from the SEC,
the PSE has mandated the trading participants
to buildup and maintain their Unimpaired
Paid-Up Capital to a minimum of P30 million
effective December 1.
Prosecution and Enforcement
Investigation and resolution
of Investor and Employee Complaints
The PSE resolved all pending investor
complaints (ICs) pending from 2010. In 2011,
twelve (12) ICs and two employee complaints
(ECs) were filed. Both the ECs and nine (9) ICs
were successfully resolved by the end of 2011.
The remaining three (3) ICs have also been
successfully resolved, leaving no pending
ECs and ICs from 2011.
Investigation and resolution
of cases of unusual trading activities
In 2011, there were twenty-nine (29) cases
of unusual trading activities. Of these, twenty-
four (24) were reviewed and resolved by year
end. Only three (3) remain pending. Of the cases
reviewed, seventeen (17) were endorsed to the
SEC for proper disposition, due to jurisdictional
matters.
27
 Appeals Process
The PSE also drafted reply memoranda on
appeal, in defense of the rulings of the PSE, its
Market Integrity Board, and the SEC. In 2011, six
(6) appeals were pending with the SEC and the
Court of Appeals, which required the PSE
to submit its reply memoranda.
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 laws.
In 2010, the DOJ, in collaboration with
the PSE secured warrants of arrest and hold
departure orders against the accused in the
criminal case entitled Rodolfo Cruz, et. al. In
February of 2011, Rodolfo Cruz, Cecilia F. Cruz,
Primalee Christine Cruz Cordero and Abelardo
Cruz were arrested and committed to the Pasig
City Jail, where they remained until December
of the same year. PSE has continued to work
with the DOJ, the SEC, and counsel for the
private complainant to ensure the effective
criminal prosecution of Rodolfo Cruz, et. al.
Settlement of claims against
Failed Trading Participants
The PSE, in coordination with the SEC,
continues to administer the settlement and
distribution of the remaining allocations of
claimants of failed trading participants. In
furtherance of the said settlement, the PSE
continues to process claims of clients of HK
Securities, Inc.
Coordinated entities in the formulation
of rules and regulations in furtherance of
investor protection.
In 2011, the PSE assisted in the drafting
of proposed amendments to the SRC and its
Implementing Rules and Regulations involving
insider trading and market manipulation.
It has also extended assistance to its successor
company, the Capital Markets Integrity
Corporation (CMIC), in the drafting of CMIC
Rules and Standard Operating Procedures.
Market Surveillance
Detection and investigation
of unusual trading activities
The PSE investigated and resolved all pending
cases from 2010. In 2011, ninety-three (93)
unusual trading activities were detected; out
28 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
of which forty-three (43) warranted further
investigation while the others were dismissed due
to lack of sufficient grounds to pursue an in depth
review. Out of these forty-three (43) investigated
cases, forty (40) were already concluded. The
remaining three (3) unresolved cases were
detected in December and are expected to be
concluded in the first quarter of 2012.
In addition to the abovementioned cases, PSE
also detected one hundred twenty-five (125)
instances of securities reaching their static
thresholds within a day. Proper disclosures have
been made by issuers for these instances. In
addition, PSE timely informed the SEC of these
cases and proper review was already conducted
and concluded.
Revised Policy
on Index Management
The PSE revised its policy on managing
the PSE Index Series – consisting of the PSEi,
six sector indices and the All Shares Index –
effective September 2011. The revision was
made to further enhance the quality of PSE’s
indices, reflect corporate actions in a timely
manner, as well as elevate index standards
to international best practices.
Under the amended policy, companies should
meet the revised criteria to qualify for PSEi
inclusion: a) the company’s free float level
should be at least 12 percent, an increase from
the previous 10 percent; b) the company must
rank among the top 25 percent in terms of
median daily value in nine out of the 12-month
period in review, as against the previous P5
million average daily value criterion; and c) the
ranking of qualified top 30 companies should
be based on full market capitalization instead
of float market capitalization. The ranking also
no longer considered sector representation of
companies and shall treat eligible companies
equally.
To be eligible for the sector indices, the
company must rank among the top 50 percent
in terms of median daily value per month in
eight out of the 12-month period in review.
Other notable revisions to the index policy
include the creation of a Reserve List, which
shall be used in the event that one or more
constituents are removed from the PSEi;
stricter rules for insertions and removals, which
provide stability in the index selection process;
and additional provisions to better reflect the
effectiveness of the PSEi as a market indicator.
The PSE also changed the date of
implementation of index recomposition
to March and September yearly from the
previous May and November schedules.
Cash AND STOCK Dividends
The PSE declared a cash dividend of P12 per share to stockholders
as it remains committed to enhancing shareholder value. The cash
payout consisted of a P6.16 regular dividend and a P5.84 special
cash dividend to stockholders of record as of March 24 and payable
on April 11. The PSE also declared a 100 percent stock dividend to
stockholders of record as of May 30. E
Analysts’ Briefing
The PSE successfully concluded two analyst briefings on March
15 and August 15 aimed to provide a more extensive discussion of
its financial results and communicate its initiatives and strategies to
investors. Both analyst briefings gathered close to 50 attendees.
The undertaking forms part of the PSE’s thrust towards
strengthening its own investor relations arm and communicating Enhance
its own achievements and growth prospects to a broader investor
base redounding to more economic activity. The development of an
Shareholder
Investor Relations Webpage to be activated in 2012 has also started. Value
Asia CEO Awards
The PSE and PSE President & Chief Executive Officer Hans B. Sicat
emerged as finalists for the categories BusinessMirror Most Innovative
Company and PLDT ALPHA Enterprise Global Filipino Executive of the
Year, respectively, in the recent Asia CEO Awards held at the Marriott
Hotel in Pasay City.
The Asia CEO Awards, presented by American Express is considered
the grandest alliance of local and international business people to
promote the Philippines and is regarded as one of the largest events
of its kind in the Asia Pacific region.

01

02

1 The PSE conducts its Analyst Briefing at the end of every semester.
2 Asia CEO Awards

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 29
 L

Launch New
Products Market Data Business
& Services Market data revenues continued to surge, reaching another record
high of P45.6 million in 2011. Even amid the general worldwide slump
in markets, revenues posed a notable 18.0 percent increase from P38.6
million in 2010, accompanying the similar growth in trading fees
of 17.8 percent.
The relative stability of market data as a source of revenue as
compared with trading fees is seen in Figure 6. Over the five year
period from 2007–2011, market data revenues steadily increased
with a remarkable growth rate of 162.1 percent, or an average annual
growth rate of 32.4 percent. Trading fees, on the other hand, increased
by only 6.3 percent, or an average annual growth rate of 1.3 percent.
In this respect, market data revenues serve as a good cushion amidst
the volatility in market conditions.
The expansion in market data revenue is a good indicator of
very strong interest by the global community in the stock market. In
particular, the increased interest in the PSEi Index data, predominantly
from our Asian neighbors such as Japan, Hongkong, Thailand and
Trading Fees and Market Data Revenues Figure 6 Singapore was highly noticeable. Use of PSE data on wall / electronic
(in Millions Php) boards likewise is another channel that gained preference in 2011.
In terms of overall interest, the number of client accounts rose
133.8 142.2 by 22.4 percent, increasing from 98 in 2010 to 120 in 2011.
To better respond to clients’ investment decisions, the PSE embarked
on the development of a new product, the Corporate Announcements
120.7
Feed (CAF), which is slated to be launched early 2012. The Corporate
Announcements Feed offers subscribers the ability to immediately
99.4
respond to fundamentals / news by conveniently receiving the
announcements “real-time” through email or File Transfer Protocol
76.4 (FTP) access. The “real-time” feature refers to the delivery of the
announcement to the subscriber immediately after being approved by
Trading Fees (incl block sales) 45.6 the Disclosures Department. The subscriber receives the announcement
38.6 via email and is freed from having to periodically monitor the website
for such announcements. At end-of-day, the subscriber receives a
21.6 summary of all corporate announcements issued during the day. Other
17.4 19.2
data products in the pipeline are: the web mobile applications and
Market Data Revenues SMS-based market data delivery. All these products aim to provide
investors with market data through the most convenient channels
2007 2008 2009 2010 2011 in order to assist in making timely investment decisions.

30 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 01
03
1 The PSE conducted the REIT Governance Forum with CFA Philippines.
2 PSE Bloomberg product seminar series: Ms. Su Leng Wong lectures on REIT structure and performance.
3 PSE Bloomberg product seminar series: Mr. Nitin Jaiswal discusses the workflow and success factors of ETF and the fundamentals and taxation of Options.
4 SBL Roundtable discussion with PSE trading participants.
Business Development
The PSE embarked on a number of new products information
activities intended for financial regulators, prospective issuers and
trading participants. This initiative aims to introduce new products
and facilities available on the PSE to the aforementioned sectors.
A REIT Governance Forum, in cooperation with CFA Philippines, was
held on July 22 for regulators and industry players. Mr. Kha Loon Lee
of the CFA Institute gave participants an overview of REIT regulatory
practices implemented in Singapore, Japan, Hong Kong, and Australia.
He also outlined pertinent regulatory concerns, among which include
the regulatory framework, ownership structure, taxation, disclosure,
fees, and investment restrictions which contribute to the success
of the real estate fund. He also issued recommendations on the
governance and regulation that will have an impact on investor
protection.
In October and December, the PSE partnered with Bloomberg
Philippines in conducting a series of Product Seminars on Exchange
Traded Funds, REIT and Equity Derivatives, Specialists from Bloomberg
Singapore lectured on the fundamentals, regulations, and taxation
02
04
of the above-mentioned new products. The seminar was well attended
by financial regulators, namely, the SEC, the Bureau of Internal Revenue
(BIR), Bangko Sentral ng Pilipinas (BSP), and representatives of trading
participants.
The PSE also spearheaded two (2) Securities Borrowing and Lending
(SBL) workshops to improve collaboration with regulators, as well
as aid participation and augment the SBL Program.
In December, a roundtable discussion was organized with trading
participants on the challenges, issues, and concerns on their involvement
in the SBL Program of the PSE. This exercise was carried out to improve
the initiative by recommending modifications to facilitate effectiveness
of the existing Rules and Regulations.
During the second half of 2011, the PSE conducted a series of activities
started to work on strategic alliances with financial regulators, and local
and foreign industry-related organizations, to cultivate partnership
and cooperation. Together with the target institutions, the PSE will
continue to focus on these kinds of activities in order to realize
a leveled-up organization in terms of successfully introducing
new products and services.
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 31

INFORMATION TECHNOLOGY
The PSE completed the setup and
installation of the command center that
provides a single point of user access to
PSE’s information technology infrastructure.
This is a combination of hardware and
software that will help prevent possible
system and hardware failures, and easily
identifies these failures before occurring.
The network management system displays
real time events of both system and
network, and sends an alert through e-mail
or Short Message Service (SMS) if the
system detects unusual traffic or a sudden
spike in server utilization.
The PSE also upgraded its trading
infrastructure, particularly the data center,
which houses the PSE’s trading engine. Such
upgrades were geared towards enhancing
the performance of the PSEtrade, the
Exchange’s trading system. The Exchange
also completed its database vault project
in the last quarter of 2011. This addresses
the most difficult security problems in
maintaining the central database of the
Exchange. It not only protects against
insider threats or hacking but also meets
the regulatory compliance requirements
of both internal and external auditors.
In support of the CMIC‘s implementation
of the new surveillance sytem that they
acquired from the Korea Stock Exchange
(KRX), the PSE provided assistance in setting
up the network, servers and data storage
for both primary and Disaster Recovery sites
and provided secure real time data feed for
the system.
32 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Upgrade
Market
U Infrastructure
& Human
Resources
Further, the PSE upgraded the Securities
Clearing Corporation of the Philippines’
web server for Central Clearing and Central
Settlement (CCCS) system.
PSEtrade Official Launch
On January 26, the PSE formally launched
PSEtrade, the trademark for its new trading
system. The PSE migrated to the NSC V900
trading platform of NYSE Technologies on July
26, 2010. Now called PSEtrade, the platform
replaced the legacy MakTrade system used since
the 1990s.
PSEtrade aims to enhance the PSE’s product
range, trading performance and volume capacity.
Investors trading on the PSE market will have
direct access in the future to a wider range of
cash, debt, and derivative instruments from one
single platform. The successful migration has
allowed PSE to handle larger trading volumes
or process trades 10 times more than the
previous system. In addition to delivering
exceptional speed and system-wide reliability,
it will provide outstanding value to PSE
customers and set new benchmarks in terms
of scalability, capacity, ultra-low latency, new
functionalities and resiliency.
For 2011, the PSEtrade system’s availability
to its stakeholders, such as data vendors and
trading participants, was 99.90 percent.
Extended Trading Hours
The PSE Board of Directors resolved to
extend the trading hours from the previous
9:30 AM to 12:10 PM schedule. To ensure
trading participants’ readiness, the Exchange
implemented the plan in two phases.
In October, trading was extended by 50
minutes by pushing back the closing of the
market to 1:00 PM. By January 2012, the
Continuous Trading Phase will be extended
for a total of 110 minutes with a Market
Recess at 12 to 1:30 PM, and the close of
market at 3:30 PM.
In preparation for the full
implementation of extended trading
hours, a simultaneous review of the Trading
Rules was conducted by adjusting the
reportorial deadlines/ processing cut-off
time of trading participants. Also, a mid-day
transaction report was made available to
trading participants who may start doing
the backroom processing on those trades
executed in the morning.
Broker System Support
and Certification
In 2011, another ninety (90) trainees
were certified as Poste D’Access Aux Marche
(PAM) Users, bringing the total number
of certified PAM Users to 790. PAM Users
underwent training offered by the PSE to
trading participant personnel who want to
learn about the trading system works and
operations, trading rules and procedures
for the execution of orders and trades.
Meanwhile, of these 90 new PAM Users,
fifty seven (57) were issued PAM accounts
or Trading Accounts which allows them
to post orders and trade at the Exchange,
01 02
raising the number of PAM accounts to 537
from 480 accounts in 2010. PAM accounts
are issued only to SEC licensed traders or
salesmen who have successfully passed
the certification exam of the Exchange.
In addition, fifty nine (59) more PAM
Terminals were deployed or installed at
the trading participant’s trading booths
and at their offsite offices. Since there
was an increase in the number of PAM
03
users, another 161 RSA Security Tokens
were issued. RSA Security Tokens were
implemented last year to further enhance
the security measures to offsite users.
Likewise, the number of CCG (Customer
Common Gateway) subscribers increased
from 15 to 22. The CCG allows the trading
participants to connect their own front-end
order management system (FEOMS) to the
Exchange. Being a CCG subscriber, a Trading
Participant also has the option or could
be allowed to offer online trading facility
to its investors.
This year, PSE strengthened the trading
floor security by implementing electronic 1-2 PSEtrade, the new trading system trademark was launched in 2011 in both trading floors.
3 The PSE information technology command center
access to the Ayala floor with the use of
PSE-issued access cards. The new PSE ID all the trading-related problems/issues and HUMAN RESOURCES
allows the bearer to enter and exit through inquiries received at the trading floor, phone AND ADMINISTRATION
the installed turnstile and electronic and/or e-mail. Issues raised and inquiries filed
doors on the trading floor. can be easily monitored and acted upon by Administration Services
PSE continues to keep the trading the support staff while the summary of active,
The PSE was able to complete its Boardroom
participants, third-party providers and closed and open issues can easily be generated.
audio visual project by completing the multi-
other trading related personnel updated media facilities in the Boardroom that now has
on PSEtrade-related activities via a PSE LIBRARY AND DIGITIZATION
a fixed LCD projector and a wireless conference
dedicated section on the PSE website. To provide the investing public easier access microphone system. To ensure tighter security
PSEtrade-related memos, announcements, to the Exchange’s historical documents, the PSE measures at the Ayala Trading Floor, the PSE
presentations, technical requirements, began digitizing its library in September 2011. was also able to install a Trading Floor Security
documentations, training schedules and A total of 750,000 pages of historical records Access System at the PSE Ayala Office. This
schedule of events are posted on the were scanned and indexed to form part of a restricted entry to and exit from the trading
website for reference. planned digital library. The digital conversion floor only to authorized personnel, addressing
In addition to the centralized email is also expected to preserve old records from the concern of entry of unauthorized personnel
address (helpdesk@pse.com.ph) and hotline deterioration brought about by repeated use. to the trading floor.
(819-4450), the PSE implemented the The library digitization project also marked the The PSE also implemented New
PSE Helpdesk System to further enhance first phase of the PSE’s plan to digitize its office International and National Direct Dialing
its broker service function. The helpdesk records, with the second phase company-wide passcodes and Dialing Procedure to address
system allows the support staff to record digitization estimated to be completed in 2012. concerns on unauthorized phone calls.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 33
 01
1 The PSE Employees’ bowling tournament was held last July 2011.
2 The PSE-SCCP Summer Outing of 2011 was held at Stilts, Calatagan, Batangas.
3 The PSE-SCCP employees, in partnership with GMA Kapuso Foundation, packed relief goods for the victims of typhoon Sendong.
Materials Management
& Procurement Services
The first batch of disposition of vehicles
and office equipment, furniture and fixtures
previously used at the Tektite offices was
completed in August generating revenues
totaling to P1,490,240.00.
Improvements were also instituted in the
materials management/ inventory process
which include the: a.) institutionalization of
the Fixed Asset Loan Agreement (FALA) and
Turnover Accountability Form (TAF) to document
and monitor property and equipment (P & E),
with the inclusion of a Reference No. for each
movement; b.) creation of a master file and
back up file for all Memorandum Receipt of
Accountability (MRA), FALA, TAF, Gate Pass of P
& E, for proper monitoring of asset movement;
c.) conducted a fixed asset listing aimed at
identifying individual employee accountabilities
(previously accounted to groups/ departments/
sections), with the inclusion of Reference
Documents (i.e., Delivery Receipts, Sales
Invoices, Purchase Orders, warranty certificates)
and condition of the assets; and d.) the
enhancement of the fixed asset listing to
include certifications for non-inventorial items
such as software/software licenses as proof that
these licenses are existing and are still in use.
The PSE has also been accepted into the
Philippine Institute for Supply Management
34 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
02
03
(PISM) to widen contacts and networking
capabilities. The move also aims to: a) upgrade
the technical skills of staff through certification
and various training programs and seminars;
and b) secure a forum where purchasing
personnel can meet to network professionally
and in the process discuss, find and share
business solutions among each other.
Employee Services
The PSE coordinated three health and
wellness sessions for employees as well as
seminars conducted by the Exchange’s health
care provider, Intellicare – Asalus Corporation
and Group Life and Accident insurance benefit
provider Philamlife.The PSE also administered
Hepatitis B Vaccine to all employees, and
interested trading participants. A new and
mandated Special Leave Benefit for Women
Employees was also implemented.
Year-round employee relations activities
were also conducted which were aimed at
providing employees an avenue for camaraderie
and fellowship. These include the Basketball
Tournament at the Makati Poblacion Sports
Gym from March 2 until April 13; the Summer
Outing at Stilts Resort in Batangas on May 7 to
8; the 2nd Quarter General Assembly and Town
Hall Meeting on June 6 at the Brokers’ Lounge;
the Bowling Tournament for employees from
June 22 to August 10 at the Coronado Lanes
at EDSA Starmall in Mandaluyong; the PSE
Halloween Party last October 26 at the
Brokers’ Lounge, the Badminton Tournament
on November 5 at the Makati Stock
Exchange Basement Badminton Courts and
the PSE Christmas Party last December 15
at the Enderun Colleges.
The approval of the reorganization of
the PSE was initiated on February 23.The
move was meant to realign PSE work groups
accordingly in the light of simplifying
reporting structures and flattening the
organization.
A New Retirement Plan trustee was also
contracted. Being the new trustee, Banco de
Oro was able to complete the full transfer
of the PSE’s account and its assets from
the previous trustee on October 10.
In line with efforts for continuous
improvement, the PSE completed an audit
and general update of the 201 Files of all
employees and created an automated 201
File Database. Philhealth Members’ Data
Record and TIN registration of all employees
were also updated.
Before the year ended, the Board of
Directors approved a new round of the
Employee Stock Purchase Plan (ESPP) for
three years starting July 2012 and ending
by July 2014.
Philippine Stock Exchange, Inc. Organizational Chart Figure 7

president &
CHIEF EXECUTIVE OFFICER Securities Clearing Corporation
of the Philippines (SCCP)

office of the
Board Secretariat
general counsel
support services operations group
group

Controllership Human Resources Corporate Planning Capital Markets Issuer Trading

Technology Market Operations
& Treasury & Administration & Communications Development Regulation Participants

Budget Infrastructure Corporate Planning Market Trading

Employee Services Listings Operations
& Treasury & System Admin & Research Education

Applications Administrative Public & Investor Marketing Market

Accounting Development Services Disclosure
Services Relations Control

Materials Business Broker System

Database
Management & Development Support &
Administration
Procurement Certification
Services
Market Trading
Data Business Development

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 35

IMPLEMENTING RULES AND
REGULATIONS OF THE REAL
ESTATE INVESTMENT TRUST
(REIT) ACT OF 2009
On April 27, the SEC issued SEC Memorandum
Circular No. 2 which introduced amendments
to the Implementing Rules and Regulations
of the REIT Act of 2009. The amendments
include the following: (i) minimum public
ownership (MPO) requirement of at least 40
percent of the outstanding capital stock at
the initial year, to be increased to 67 percent
within 3 years from listing; (ii) minimum paid-
up capital requirement of P300 Million, no
part of which shall be used to pay prior debts
or encumbrances of its real property; and (iii)
the appointment of an independent Property
Manager.
On July 25, the Bureau of Internal Revenue
(BIR) issued Revenue Regulations No. 13-2011,
which implements the tax provisions of the
REIT Act of 2009.
The PSE is planning to have continuous
dialogues with the BIR to enhance the
provisions of the rules.
Other rules approved by the SEC were:
- Amendments to the Minimum Public of Investments; Mr. Erramon I. Aboitiz, CEO of
Ownership (MPO) Rule of the Exchange
- Memorandum of Agreement on the
Supplemental Listing and Disclosure
Requirements for Petroleum and
Renewable Energy Companies
36 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Partner with
Government
P & Other
Stakeholders
IMPLEMENTING RULES AND
REGULATIONS OF THE PERSONAL
EQUITY AND RETIREMENT ACCOUNT
(PERA) ACT OF 2008
On October 27, the BIR issued Revenue
Regulations No. 17-2011, which implements
the tax provisions of the PERA Act of 2008.
STRATEGIC PARTNERSHIPS
Asiamoney
The PSE in partnership with Asiamoney,
hosted a discussion forum entitled “Philippines
Power and Infrastructure Funding Roundtable”
on August 4 at the New World Hotel, Makati City
to showcase the core investment opportunities,
to highlight specific areas of growth for
investors, and to discuss the role
of the corporate and financial sectors in
bringing the true potential of Philippines,
Inc. The panel was composed of Mr. Hans B.
Sicat, President and CEO of The Philippine
Stock Exchange, Inc.; Mr. Cristino L.
Panlilio, Department of Trade and Industry
Undersecretary and Managing Director, Board
Aboitiz Power Corporation; Mr. Ferdinand K.
Constantino, CFO of San Miguel Corporation; Mr.
Manuel N. Tordesillas, President of ATR KimEng
Capital Partners; and Ms. Josefina Patricia M.
Asirit, Undersecretary of Department of Energy.
Cebu Chamber of Commerce
and Industry, Inc.
The Exchange formally inked its
partnership with the Cebu Chamber
of Commerce and Industry, Inc. (CCCI)
on December 9 at the Marriott Hotel, Cebu
City. A Memorandum of Cooperation will
strengthen PSE and the Chamber’s advocacy
in promoting the equities market as a venue
for raising capital.
Department of Trade and Industry –
Board of Investments
It has always been an initiative of both
the PSE and Department of Trade and
Industry – Board of Investments (DTI-BOI)
to promote Philippines, Inc. as one of the
attractive investment destinations in the
realm of emerging markets. Through the
joint efforts of PSE and DTI-BOI, twenty
(20) members of the delegation of Filipino-
American Businessmen visited the PSE
on September 20 as part of its Trade and
Investment Mission to the Philippines.
Development Bank of the Philippines
The Exchange, in partnership with the
Development Bank of the Philippines (DBP),
spearheaded an awareness campaign
on alternative financing for SMEs. This
endeavor aims to educate SMEs on the
advantages and the challenges of raising
funds through the equities market. A leading
liquefied petroleum gas refilling station
and a renewable energy firm are two (2)
of the companies that have expressed keen
interest in listing on the Exchange vis
this campaign.
Philippine Chamber of Commerce
and Industry, Inc.
In collaboration with the Philippine
Chamber of Commerce and Industry, Inc.
(PCCI), PSE conducted a listing forum for
the members of the Chamber. Mr. Antonio
Tiu, President of AgriNurture, Inc.; Mr.
Roberto Benares, Managing Director of
ATR KimEng Capital Partners, Inc.; and Atty.
Jose Marie Fabella, Managing Partner of
Fabella and Fabella Law Office rendered
time to discuss advantages and challenges
of listing, financial advisory, issue
management, and underwriting services,
and SEC requirements on listing application,
respectively.
Thomson Reuters
As part of its initiatives to promote best
practices in Investor Relations (IR) among
listed companies, the PSE, in partnership
with Thomson Reuters, conducted the PSE-
Thomson Reuters IR Best Practices Forum
on October 7. Key professionals and experts
took part and shared the latest best practice
in the field of investor relations. The event
was recorded and broadcasted via web
stream making it available to the global
The Yellow Team emerged as team champion at the 9th PSE Badminton Tournament.; the PSE kicked off its 2nd PSE Futsal Cup in 2011.
audience. PSE’s collaboration with Thomson
Reuters, a leading global solutions provider,
will provide more opportunities to promote
IR solutions packages to listed companies,
ensuring that listed companies are educated
on the value of IR.
ASEAN EXCHANGES CEOs MEETING
The Exchange continues to be actively
involved in collaborative discussions with
ASEAN Exchanges through the ASEAN CEOs
meetings and the ASEAN Strategy Development
Working Group (SWG). The PSE, which is part
of actively participating exchanges that include
Bursa Malaysia, Indonesia Stock Exchange
and Singapore Exchange, hosted the meetings
in January.
Throughout the year, the ASEAN exchanges
held discussions on the group’s continuing
efforts such as the ASEAN website development,
marketing strategy for ASEAN as an asset class,
research coverage for ASEAN companies, and
creation of an index for the ASEAN Stars, which
include PSE index companies.
SPORTS TOURNAMENTS WITH
TRADING PARTICIPANTS AND LISTED
COMPANIES
9th PSE Badminton Tournament
The PSE held its 9th PSE Badminton
Tournament last November 12 at the
Powersmash Badminton Center in Makati.
The annual sports event was well attended,
and garnered support from various
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
organizations. This competition has become
an annual tradition as it aims to foster
camaraderie and sportsmanship among the
PSE, the broker community, and the media. The
Yellow Team, consisting of representatives from
the PSE, Abacus Securities Corp., Value Quest
Securities Corp., PCCI Securities Brokers Corp.,
CLSA Philippines, Asia Sec Equities, Inc., J. M.
Barcelon & Company, Inc., Wealth Securities,
Inc., VSEC.Com, Inc., and from the Philippine
Star emerged as the team champion.
2nd Futsal Cup
The PSE emerged as the champion in the
2nd PSE Futsal Cup held at the Clubsixfifty
Sports Center in Quezon City, with a 1-0 victory
after it faced off with ATR Kim Eng Securities.
The PSE fielded two teams with PSE Team B
clinching the title. PSE Team B also included
players from I. Ackerman & Company and Manila
Electric Company. In the semi-finals, Petron
Corporation challenged International Container
Terminal Services Inc. with Petron emerging
as the winner and placing second runner up.
The futsal tournament, now on its second
year, featured close to 90 players from various
teams largely composed of stock brokers and
representatives of publicly-listed firms. Teams
consisted of players from the PSE, I. Ackerman
& Company, Manila Electric Co., International
Container Terminal Services Inc., Campos Lanuza
& Co., Petron Corp., ABS-CBN Broadcasting
Corp., Manila Water Co., PLDT-Smart
Communications, ATR Kim Eng Securities, UBS
Securities Philippines, Inc., Sun Life Financial
Inc. and Roxas Holdings, Inc.
37
 01 02 03

Exchange visits
06 07
04 05

06 07

1 The PSE-AsiaMoney Roundtable gathered heavyweights
from the public and private sector including The
Department of Trade and Industry, Aboitiz Power
Corporation, San Miguel Corporation , Department of
Energy and ATR Kim Eng Capital Partners.
2 CEOs of the Asean Exchanges gather
for a brief photo after the meeting.
3 The 14th ASEAN Exchanges CEOs Meeting theme
4 Delegates from the Palau Stock Exchange visit the PSE.
5 The PSE welcomed delegates from the Dhaka Stock
Exchange.
6 Delegates from the Chittagong Stock Exchange
ring the bell at the PSE.
7 Dr. Mark Mobius, Executive Chairman of Templeton
Emerging Markets Group and a guru in emerging
markets fund management rang the closing bell
at the PSE.

38 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers

nce again, the Philippine CIOs on “Mornings with ANC”. The reach of the
Stock Exchange (PSE)
and PSE Foundation
(Foundation) were quick
and generous in
responding to the call for
assistance to the victims of
disastrous typhoons of the year:
Pedring and Quiel in October,
and Sendong in December.
Donations in kind: rice, canned tuna,
bottled water, cup noodles and medicines
worth P1.2 million were coursed through
the two active solicitors for the victims:
ABS-CBN Foundation – Sagip Kapamilya
and GMA Kapuso Foundation. For Typhoon
Sendong, the Foundation donated P200
thousand in cash, also coursed through the
two (2) networks. The PSE also coordinated
sending donations from its employees and
trading participants for Typhoon Sendong
victims through the Corporate Network for
Disaster Response.
Increasing public awareness of the
stock market continued to be promoted
by the Foundation through sponsorships
in the yearly PSE Bull Run in January and
the ceremonial launching of the PSE New
Trading System (NTS) on January 25, and
the broadcast of PSE interstitials/ com-gaps
in the ANC Business Nightly. The quarterly
themes were as follows:
1. Stock Market and the Economy
2. Benefits for Investors
3. Risks and Returns
4. Safeguards
Educating the public on the workings of
the stock market were carried out during
the year through the weekly (Wednesday)
interviews of listed company CEOs, CFPs,
CORPORATE social
responsibility
PSE Market Education Department campaigns
was widened though the development and
launch of the PSE Academy Website (www.
pseacademy.com.ph) in July. The site is both
a library, classroom and information depot
on stock market knowledge and current events.
Likewise, the Foundation continues to
support institutions involved in stock market
education; such as the Capital Market
Development Council, the Ateneo Law School
Continuing Legal Education Center, other high
schools and universities collaborating with PSE
in educating the public. Technology is promoted
through the distribution of used computers
gathered from the PSE trading floors and
trading participants.
Total funds channeled to capital market
development projects amounted to P1.5 million;
while for Corporate Social Responsibility (CSR)
donations was P1.4 million.
PSE signed a donation agreement on April 6 with The PSE
Foundation for the former’s donation of computers to the
latter. The PSE Foundation managed the donation of personal
computers to schools and other institutions.
Reducing Carbon Footprint
Annual Report
The PSE reduced the number of printed
2010 reports by 30 percent by publishing 500
digital copies in CD format. In order to sustain
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
CSR efforts and to participate in the emerging
trend of online reporting, the PSE also initiated
an interactive version of the report. The web-
based format offers flexible opportunities
for information sharing and interaction with
stakeholders.
Energy Conservation
Two notable energy conservation schemes for
offices were also implemented. The old 36-watt
bulbs were replaced with 18-watt fluorescent
lights without compromising the luminance/
brightness. The same energy conservation
scheme has been employed at the Memorabilia
by replacing its 5-watt halogen lights to 4-watt
LED lights. Another cost saving scheme was the
relocation of the unused 5TR air-conditioning
units from previous offices in Tektite to its 4th
Floor Computer Room. This saved electricity cost
by not using the centralized air-conditioning
system for daily operations.
Green Procurement
The practice of “green procurement” was also
adapted with the application of best practices
in terms of procurement process, health and
safety, environmental awareness. This includes
the purchase of the more energy saving LED
monitors instead of LCD monitors.
39
 he year 2011 was another good year for
SECURITIES CLEARING the Securities Clearing Corporation (SCCP),
a wholly-owned subsidiary of the Philippine
CORPORATION OF THE Stock Exchange (PSE). The SCCP ended the
PHILIPPINES year with net income after tax of P160.625
million, a 20 percent increase over the previous
year’s net income of P133.875 million.
The service fees earned by SCCP increased by 17.82 percent
to P254.034 million from P215.604 million in 2010. Despite the
uncertainties in the global market that hounded the country
throughout the year, 2011 still resulted in a 15.46 percent increase
in average daily value turnover of equity investments, from P4.95
billion in 2010 to P5.71 billion in 2011.
On December 14, 2011, the SCCP Board of Directors declared cash
dividends at P148.94 per share or P140.0 million to stockholders of
record as of December 31, 2011 payable on March 7, 2012. Since 2007,
the SCCP has paid its parent company cash dividends totaling P567.6
million.

Clearing and Settlement Operations

Clearing Members continued to maintain a very satisfactory
compliance rate with respect to the 12:00 noon settlement deadline,
achieving a compliance rate of 99.97% and 99.95% for the delivery
of cash and securities obligations, respectively. There were no
overnight settlement fails during the year.
2011 was the first full year since the migration of SCCP’s Central
Clearing and Central Settlement (CCCS) system to its own database
servers. Clearing Members experienced a significant improvement
in the timeliness of the credit of the Due Broker entitlements, both
Cash and Securities, as these were released by SCCP by 12:50 p.m.
on the average. Prior to the migration of CCCS to the new database
servers, the average time for releasing Due Broker entitlements was
at 1:33 p.m. This in turn enables the Clearing Members to release
on a timely basis to their investors their cash and securities
entitlements.
It was likewise the first full year of implementation of the
Collateral Management module of CCCS. During the year 2011, both
the clearinghouse and the Clearing Members experienced significant
productivity gains since SCCP no longer needed to fax some 100
notices to about 100 Clearing Members daily to advise them of
our collateral requirements or collateral refund, and the concerned
Clearing Members receive their Notices at the same time, since these
are now electronically available in CCCS.

Upgrade of the CCCS Web Servers

In line with the objective of improving the accessibility of CCCS to
its Clearing Members, SCCP worked closely with the PSE-Technology
Division (PSE-TD) for the upgrade of the web servers of CCCS. Phase 1
of the project was completed last December 2011 with the purchase
and migration of two (2) servers for the production site. Phase 2 of
the project which will involve the purchase and migration of two
(2) more servers for the Disaster Recovery site is expected to be
completed within the first quarter of 2012.

40 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Depository Project
While waiting for the approval of the
Securities and Exchange Commission (SEC)
of SCCP’s application to be a depository,
the Depository Team started working on
the customization and development work
needed to enhance and improve
the Depository module of CCCS.
In line with the preparations, SCCP
conducted Depository training sessions
from June 27 to June 30 for each of the
four (4) foreign custodian banks and an
institutional investor to give them advance
information and hands-on training on
the CCCS Depository functionalities.The
Participants gave positive feedback on
some of the features of the CCCS Depository
module. SCCP also took the opportunity to
solicit comments and suggestions from the
Participants as to how the system can still
be further improved or enhanced to meet
the unique requirements of the foreign
custodian banks.
PSE’s Amendment System Project
In line with the project of the Exchange
of allowing the Trading Participants to
execute their own requests for amendments,
SCCP is taking active participation in the
series of internal testing facilitated by the
PSE-Market Operation Division to ensure
the integrity and correctness of the trade
file provided to SCCP as affected by the
executed and approved amendments.
Risk Management
Margin Collateral
As part of the enhancements to SCCP’s
Risk Management framework
and in preparation for the implementation
of Margin Collateral requirement from
Clearing Members, which is pending SEC
approval, SCCP and the PSE-TD customized
the clearing and settlement system, CCCS,
to integrate Margin Requirement with the
existing Collateral Management Module
of CCCS handling the daily Mark to Market
Collateral Deposit System.
Mark to Market Collateral Deposit
System (MMCD System)
In view of the extension of trading hours to
3:30PM effective January 2, 2012, and in order
to streamline the mark-to-market process, the
SCCP Board approved the following revisions
to Rule 8.1.9 and Operating Procedure Sections
6.4 and 6.5 covering the Mark to Market
Collateral Deposit (MMCD) System:
1. Notices of Collateral Requirements and
Collateral Refunds are now available in
the CCCS system at 6:00 PM, instead of 2:00
PM, after the uploading of the PSE trades,
closing prices and other data needed for
the completion of the computation process
in the CCCS system.
2. Clearing Members are no longer required
to fax back to SCCP the Notice of Collateral
Requirement with the details of their
collateral if the mode of collateralization
is via Cash or Securities. This requirement
was retained only if the mode of
collateralization is via Early Delivery of
Securities. Cash deposits and/or Securities
submitted as collateral are automatically
credited to the Collateral Accounts of
Clearing Members and are blocked by the
CCCS system and can be viewed by SCCP
via CCCS on-line, real-time.
3. The deadline for notification by Clearing
Members of their intention to do an Early
Delivery of Securities has been changed
from between 2:00 PM and 7:00 PM to
10:00 AM of the day following computation
date. This gives Clearing Members enough
time to notify SCCP since SCCP will be
able to notify Clearing Members of their
Collateral Requirement only by 6:00 PM
with the extension of trading hours.
4. In Operating Procedures Section 6.4,
SCCP added a requirement that Clearing
Members shall be responsible for viewing
their messages in CCCS to ascertain
whether they are required to put up
collateral or are entitled to a refund.
The SEC approved the proposed revisions
to Rule 8.1.9 and Operating Procedures Sections
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
6.4 and 6.5 last 30 January 2012 and the
revisions are now in effect.
Give-up/Take-up Facility
SCCP has submitted to the SEC its request
for approval to implement the Give-up/Take-up
facility of CCCS, along with the proposed Rules
and Operating Procedures governing the facility.
The Give-up/Take-up facility is applicable
to client trades where the Clearing Member
relies on a third party such as another Clearing
Member (in the case of “Done Through” trades),
or a Custodian Bank (in the case of foreign
client transactions) or an institutional investor
to deliver to him cash or securities needed for
settlement before it can deliver same to SCCP.
The Give-up/Take-up facility will allow the
Clearing Member with the settlement obligation
(referred to as the “Assigning Clearing Member”)
to give up the trade to the third party (referred
to as the “Settling Participant”) and the latter
to accept the assigned trade as well as the
corresponding settlement delivery obligation
and entitlement attached to the said trade. The
Settling Participant will deliver the cash or
securities directly to SCCP, thereby eliminating
one leg of the settlement process. This not only
reduces the settlement risks inherent in such
trades, but also reduces the transaction costs
since it does away with the need to perform “off-
exchange trades” and creates efficiency in the
clearing and settlement of equity trades.
In the event, however, that the Settling
Participant is unable to perform the settlement
obligations corresponding to the assigned
trade, the Assigning Clearing Member remains
responsible for the timely settlement of the
trade. This facility is optional and may be
utilized for settlement purposes only, and is
applicable to client trades only.
SCCP’s Contribution to the
Clearing and Trade Guaranty Fund
In order to demonstrate its commitment as
a central counterparty to all PSE trades, SCCP
has appropriated P30 million of its retained
earnings as its contribution to the Clearing
and Trade Guaranty Fund. The use of the funds
will be restricted to the settlement of trade
obligations of defaulting clearing members.
41
 CAPITAL MARKETS he Philippine Stock Exchange (PSE) decided
INTEGRITY to spin-off its existing Market Regulation
Division (MRD) to a self-regulatory
CORPORATION organization known as the Capital Markets
Integrity Corporation (CMIC) to enhance
transparency in the capital markets. CMIC
is composed of five (5) directors, four (4)
of whom are independent.

A wholly-owned subsidiary of the PSE, CMIC shall serve as an

independent surveillance, audit and compliance unit with the authority
to implement rules and regulations and provisions of Securities laws
pertaining to the operations of the trading participants and their
dealings with the investing public. Its incorporation, approved by the
Securities and Exchange Commission (SEC) on March 14, actualizes the
plan of the PSE to enhance the integrity of stock market operations
at par with global standards and best practices.
To fully realize its objectives and in fulfillment with the
requirements of the SEC for a Self-Regulatory Organization (SRO)
license, CMIC has already provided the SEC with the CMIC Rules,
Standard Operating Procedures, Code of Ethics and its Manual for
Corporate Governance.
On May 3, the CMIC acquired the EXTURE, a state of the art
surveillance system of the Korea Exchange (KRX) in line with
CMIC’s vision to raise the standards of regulation in the Philippine
capital market. Both CMIC and KRX have been working together in
customizing the system and making it more responsive to Philippine
stock market conditions. Detection rules and statistic analysis models
are only two of the many features of EXTURE that are expected to
reduce the average time of surveillance operations. The CMIC projects
EXTURE to be fully operational by the second quarter of 2012.
CMIC and KRX sign an agreement for the acquisition of a new surveillance system.

Capital Markets Integrity Corporation, Organizational Chart Figure 8

CMIC BOARD
OF DIRECTORS

Corporate
PRESIDENT & Secretary
CHIEF EXECUTIVE OFFICER

Secretariat

Audit & Compliance Investigation & Surveillance Administrative

Enforcement Services

42 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 MISSION

CORPORATE
VALUES
•
Offer products and services
responsive to the needs
VISION of investors and other
stakeholders

• •
Provide a facility for fair, Professionalism in delivering
accurate, complete and quality service and in
timely information about meeting the highest
listed companies, while standards of excellence
extending market education
and awareness programs •
to investors Integrity, transparency
• and accountability in
A premier exchange with • implementing business
world-class standards Be a preferred venue programs and enforcing
for trading securities for raising capital decisions
and raising capital
• •
that serves as a strong Teamwork in working towards
engine for a robust Practice and promote good
governance within the a common and favorable
economy Exchange and among listed goal for the market
companies and trading
participants •
Mutual respect in relating
• with fellow employees
Operate efficiently to optimize
shareholder value •
Inner strength in prioritizing
• the common good
Adopt world-class systems of the market instead
and global best practices of individual interest
for an efficient, fair and
orderly market •
Corporate responsibility
• in promoting market
Develop a highly motivated growth hand in hand with
and professional workforce, community welfare
committed to serve and excel

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 43
 Listed Companies as of march 15, 2012
Listed Company Website Certification on
Compliance with
Corporate Governance Manual

1. 2GO Group, Inc. (“2GO”) - formerly ATS Consolidated (ATSC), Inc. www.atsc.com.ph ✓
2. A Brown Company, Inc. (“BRN”) www.abrown.ph ✓
3. A. Soriano Corporation (“ANS”) www.anscor.com.ph ✓
4. Abacus Consolidated Resources and Holdings, Inc. (“ABA”) www.abacusconsolidated.com ✓
5. Aboitiz Equity Ventures, Inc. (“AEV”) www.aboitiz.com ✓
6. Aboitiz Power Corporation (“AP”) www.aboitizpower.com ✓
7. Abra Mining and Industrial Corporation (“AR”) ✓
8. ABS-CBN Corporation (“ABS”) http://ir.abs-cbn.com ✓
9. ABS-CBN Holdings Corporation (“ABSP”) abs-cbnpdr.com ✓
10. Acesite (Phils.) Hotel Corporation (“ACE”) www.waterfronthotels.com.ph ✓
11. AGP Industrial Corporation (“AGP”) ✓
12. AgriNurture, Inc. (“ANI”) www.ani.com.ph ✓
13. Alaska Milk Corporation (“AMC”) www.alaskamilk.com.ph ✓
14. Alcorn Gold Resources Corporation (“APM”) www.alcorngold.com ✓
15. Alliance Global Group, Inc. (“AGI”) www.allianceglobalinc.com ✓
16. Alliance Select Foods International, Inc. (“FOOD”) www.allianceselectfoods.com ✓
17. Allied Banking Corporation (“ABC”) www.alliedbank.com.ph ✓
18. Alphaland Corporation (“ALPHA”) www.alphaland.com.ph ✓
19. Alsons Consolidated Resources, Inc. (“ACR”) www.acr.com.ph ✓
20. Anchor Land Holdings, Inc. (“ALHI”) www.anchorlandholdings.com ✓
21. Anglo Philippine Holdings Corporation (“APO”) www.anglophil.com ✓
22. APC Group, Inc. (“APC”) www.apcaragorn.com ✓
23. Apex Mining Co., Inc. (“APX”) www.apexmines.com
24. Araneta Properties, Inc. (“ARA”) www.aranetaproperties.com ✓
25. Arthaland Corporation (“ALCO”) www.arthaland.com ✓
26. Asia Amalgamated Holdings Corporation (“AAA”) ✓
27. Asian Terminals, Inc. (“ATI”) www.asianterminals.com.ph ✓
28. AsiaTrust Development Bank, Inc. (“ASIA”) www.asiatrustbank.com ✓
29. Atlas Consolidated Mining and Development Corporation (“AT”) www.atlasphilippines.com ✓
30. ATN Holdings, Inc. (“ATN”) www.atnholdings.com ✓
31. Atok-Big Wedge Co., Inc. (“AB”) www.atokbigwedge.com ✓
32. Ayala Corporation (“AC”) www.ayala.com.ph ✓
33. Ayala Land, Inc. (“ALI”) www.ayalaland.com.ph ✓
34. Bank of the Philippine Islands (“BPI”) www.bpi.com.ph ✓
35. Bankard, Inc. (“BKD”) www.bankard.com ✓
36. Basic Energy Corporation (“BSC”) www.basicenergy.ph ✓
37. BDO Leasing and Finance, Inc. (“BLFI”) www.leasing.bdo.com.ph ✓
38. BDO Unibank, Inc. (“BDO”) www.bdo.com.ph ✓
39. Belle Corporation (“BEL”) www.bellecorp.com ✓
40. Benguet Corporation (“BC”) www.benguetcorp.com ✓
41. Berjaya Philippines Inc. (“BCOR”) www.pgpi.com.ph ✓
42. BHI Holdings, Inc. (“BH”) www.bhi-holdings.com ✓
43. Bloomberry Resorts Corporation (“BLOOM”) - formerly Active Alliance, Incorporated www.activeallianceinc.com ✓
44. Bogo-Medellin Milling Company, Inc. (“BMM”) ✓
45. Boulevard Holdings, Inc. (“BHI”) www.boulevardholdings.com ✓
46. Calapan Ventures, Inc. (“H2O”) www.h2o.com ✓
47. Cebu Air, Inc. (“CEB”) www.cebupacificair.com ✓
48. Cebu Holdings, Inc. (“CHI”) www.cebuholdings.com ✓
49. Cebu Property Ventures and Development Corporation (“CPV”) www.cpvdc.com ✓
50. Central Azucarera de Tarlac, Inc. (“CAT”) www.cat-luisita.com ✓
51. Centro Escolar University (“CEU”) www.ceu.edu.ph ✓
52. Century Peak Metals Holdings Corporation (“CPM”) www.centurypeakmetals.com ✓
53. Century Properties Group Inc. (“CPG”) www.century-properties.com ✓
54. Chemical Industries of the Philippines, Inc. (“CIP”) www.chemphil.com.ph ✓
55. Chemrez Technologies, Inc. (“COAT”) www.chemrez.com ✓
56. China Banking Corporation (“CHIB”) www.chinabank.ph ✓
57. Cirtek Holdings Philippines Corporation (“CHIPS”) www.cirtekholdings.com ✓
58. City & Land Developers, Incorporated (“LAND”) www.citylandcondo.com ✓
59. Cityland Development Corporation (“CDC”) www.citylandcondo.com ✓
60. Citystate Savings Bank, Inc. (“CSB”) www.citystatesavings.com ✓
61. COL Financial Group, Inc. (“COL”) - formerly CitisecOnline.com, Inc. www.citiseconline.com ✓
62. Concrete Aggregates Corporation (“CA”) www.cac.com.ph ✓
63. Cosmos Bottling Corporation (“CBC”) www.cosmosbottling.com.ph ✓
64. Crown Equities, Inc. (“CEI”) www.crownequitiesinc.com ✓
65. Cyber Bay Corporation (“CYBR”) ✓

44 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Listed Company Website Certification on
Compliance with
Corporate Governance Manual

66. DFNN Inc. (“DFNN”) www.dfnn.com ✓

67. Digital Telecommunications Phils., Inc. (“DGTL”)* www.digitel.ph ✓
68. Dizon Copper-Silver Mines, Inc. (“DIZ”) ✓
69. DMCI Holdings, Inc. (“DMC”) www.dmciholdings.com ✓
70. EasyCall Communications Philippines, Inc. (“ECP”) www.easycall.com.ph ✓
71. EEI Corporation (“EEI”) www.eei.com.ph ✓
72. Empire East Land Holdings, Inc. (“ELI”) www.empire-east.com ✓
73. Energy Development Corporation (“EDC”) www.energy.com.ph ✓
74. Eton Properties Philippines, Inc. (“ETON”) www.eton.com.ph ✓
75. Euro-Med Laboratories Phil., Inc. (“EURO”) www.euromedlab.net ✓
76. Ever-Gotesco Resources and Holdings, Inc. (“EVER”) www.egrhi.com.ph ✓
77. Export and Industry Bank, Inc. (“EIBA”) www.exportbank.com.ph ✓
78. F & J Prince Holdings Corporation (“FJP”) www.fjprince.com ✓
79. Far Eastern University, Incorporated (“FEU”) www.feu.edu.ph ✓
80. Federal Resources Investment Group, Inc. (“FED”) www.federalchemicals.com.ph ✓
81. Fil-Estate Corporation (“FC”) www.fil-estatecorp.com ✓
82. Filinvest Development Corporation (“FDC”) www.filinvestgroup.com ✓
83. Filinvest Land, Inc. (“FLI”) www.filinvestland.com ✓
84. Filipino Fund, Inc. (“FFI”) ✓
85. Filsyn Corporation (“FYN”) www.filsyncorp.com ✓
86. First Abacus Financial Holdings Corporation (“FAF”) www.firstabacusfinancial.com ✓
87. First Gen Corporation (“FGEN”) www.firstgen.com.ph ✓
88. First Metro Investment Corporation (“FMIC”) www.firstmetro.com.ph ✓
89. First Philippine Holdings Corporation (“FPH”) www.fphc.com ✓
90. Forum Pacific, Inc. (“FPI”) ✓
91. GEOGRACE Resources Philippines, Inc. (“GEO”) www.geograce.com ✓
92. Ginebra San Miguel, Inc. (“GSMI”) www.ginebrasanmiguel.com ✓
93. Global-Estate Resorts, Inc. (“GERI”) www.global-estate.ph ✓
94. Globalport 900, Inc. (“PORT”) ✓
95. Globe Telecom, Inc. (“GLO”) www.globe.com.ph ✓
96. GMA Holdings, Inc. (“GMAP”) www.gmanetwork.com ✓
97. GMA Network, Inc. (“GMA7”) www.gmanetwork.com ✓
98. Gotesco Land, Inc. (“GO”) ✓
99. Grand Plaza Hotel Corporation (“GPH”) www.grandplazahotelcorp.com ✓
100. Greenergy Holdings Incorporated (“GREEN”) www.musxcorp.com ✓
101. Highlands Prime, Inc. (“HP”) www.highlandsprime.com ✓
102. Holcim Philippines, Inc. (“HLCM”) www.holcim.com.ph ✓
103. House of Investments, Inc. (“HI”) www.hoi.com.ph ✓
104. Imperial Resources, Inc. (“IMP”) ✓
105. Information Capital Technology Ventures, Inc. (“ICTV”) www.ictv.ph ✓
106. Integrated Micro-Electronics, Inc. (“IMI”) www.imiphil.com ✓
107. International Container Terminal Services, Inc. (“ICT”) www.ictsi.com ✓
108. Ionics, Inc. (“ION”) www.ionicsgroup.com ✓
109. IP Converge Data Center, Inc. (“CLOUD”) www.ip-converge.com ✓
110. IP E-Game Ventures Inc. (“EG”) www.e-games.com.ph ✓
111. iPeople, inc. (“IPO”) www.ipeople.com.ph ✓
112. IPVG Corporation (“IP”) www.ipvg.com ✓
113. IRC Properties, Inc. (“IRC”) - formerly Interport Resources Corporation www.interportresources.com ✓
114. I-Remit, Inc. (“I”) www.myiremit.com ✓
115. iRipple, Inc. (“RPL”) www.iripple.com ✓
116. Island Information & Technology, Inc. (“IS”) www.iiti.ph ✓
117. ISM Communications Corporation (“ISM”) www.ismcomm.com ✓
118. JG Summit Holdings, Inc. (“JGS”) www.jgsummit.com.ph ✓
119. Jollibee Foods Corporation (“JFC”) www.jollibee.com.ph ✓
120. Jolliville Holdings Corporation (“JOH”) www.joh.ph ✓
121. JTH Davies Holdings, Inc. (“JTH”) www.jthdavies.com ✓
122. Keppel Philippines Holdings, Inc. (“KPH”) ✓
123. Keppel Philippines Properties, Inc. (“KEP”) www.keppelland.com.sg ✓
124. Leisure & Resorts World Corporation (“LR”) www.lrwc.com.ph ✓
125. Lepanto Consolidated Mining Company (“LC”) www.lepantomining.com ✓
126. Liberty Flour Mills, Inc. (“LFM”) www.libertygroup.com.ph ✓
127. Liberty Telecoms Holdings, Inc. (“LIB”) www.libertytelecomsholdingsinc.com ✓
128. LMG Chemicals Corp. (“LMG”) www.chemphil.com.ph/main_lmg.htm ✓
129. Lodestar Investment Holdings Corporation (“LIHC”) ✓
130. Lopez Holdings Corporation (“LPZ”) www.lopez-holdings.ph ✓

* Effective March 26, 2012, DGTL shall be delisted from the Official Registry of the Exchange pursuant to the Company’s Petition for Voluntary Delisting.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 45
 Listed Company Website Certification on
Compliance with
Corporate Governance Manual

131. Lorenzo Shipping Corporation (“LSC”) www.lorenzoshipping.com ✓

132. Mabuhay Holdings Corporation (“MHC”) www.mabuhayholdingscorp.com ✓
133. Mabuhay Vinyl Corporation (“MVC”) www.mvc.com.ph ✓
134. MacroAsia Corporation (“MAC”) www.macroasiacorp.com ✓
135. Makati Finance Corporation (“MFIN”) webmail.makatifinance.com.ph ✓
136. Manchester International Holdings Unlimited Corporation (“MIH”) www.pharmaindustries.com ✓
137. Manila Broadcasting Company (“MBC”) www.mbcsales.com.ph ✓
138. Manila Bulletin Publishing Corporation (“MB”) www.mb.com.ph ✓
139. Manila Electric Company (“MER”) www.meralco.com.ph ✓
140. Manila Jockey Club, Inc. (“MJC”) www.manilajockey.com ✓
141. Manila Mining Corporation (“MA”) www.manilamining.com ✓
142. Manila Water Company, Inc. (“MWC”) www.manilawater.com ✓
143. Manulife Financial Corporation (“MFC”) www.manulife.com ✓
144. Marcventures Holdings, Inc. (“MARC”) www.marcventuresholdings.com ✓
145. Mariwasa SIAM Holdings, Inc. (“MMI”) www.mariwasa.com ✓
146. Marsteel Consolidated, Inc. (“MC”)
147. Maybank ATR Kim Eng Financial Corporation (“MAKE”) - formerly ATR KimEng Financial Corporation www.atrkimengfinancial.com ✓
148. MEDCO Holdings, Inc. (“MED”) www.medco.com.ph ✓
149. Megawide Construction Corporation (“MWIDE”) www.megawide.com.ph ✓
150. Megaworld Corporation (“MEG”) www.megaworldcorp.com ✓
151. Metro Alliance Holdings & Equities Corp. (“MAH”) ✓
152. Metro Pacific Investments Corporation (“MPI”) www.mpic.com.ph ✓
153. Metro Pacific Tollways Corporation (“TOL”) ✓
154. Metropolitan Bank & Trust Company (“MBT”) www.metrobank.com.ph ✓
155. Minerales Industrias Corporation (“MIC”) ✓
156. MJC Investments Corporation (“MJIC”) ✓
157. MRC Allied, Inc. (“MRC”) www.mrcallied.com ✓
158. National Reinsurance Corporation of the Philippines (“NRCP”) www.nrcp.com.ph ✓
159. NextStage, Inc. (“NXT”)
160. Nickel Asia Corporation (“NIKL”) www.nickelasia.com ✓
161. NiHAO Mineral Resources International, Inc. (“NI”) www.nihaomining.com ✓
162. Omico Corporation (“OM”) http://203.177.6.3/omico.com.ph/ ✓
163. Oriental Peninsula Resources Group, Inc. (“ORE”) www.orientalpeninsula.com ✓
164. Oriental Petroleum and Minerals Corporation (“OPM”) www.opmc.com.ph ✓
165. Pacific Online Systems Corporation (“LOTO”) www.loto.com.ph ✓
166. Pacifica, Inc. (“PA”) ✓
167. PAL Holdings, Inc. (“PAL”) www.philippineairlines.com ✓
168. Panasonic Manufacturing Philippines Corporation (“PMPC”) www.panasonic.com.ph ✓
169. Pancake House, Inc. (“PCKH”) www.pancakehouse.com.ph ✓
170. Paxys, Inc. (“PAX”) www.paxys.com ✓
171. Pepsi-Cola Products Philippines, Inc. (“PIP”) www.pepsiphilippines.com ✓
172. PetroEnergy Resources Corporation (“PERC”) www.petroenergy.com.ph ✓
173. Petron Corporation (“PCOR”) www.petron.com ✓
174. Philcomsat Holdings Corporation (“PHC”) www.philcomsat.com.ph
175. Philex Mining Corporation (“PX”) www.philexmining.com.ph ✓
176. Philex Petroleum Corporation (“PXP”) ✓
177. Philippine Bank of Communications (“PBC”) www.pbcom.com.ph ✓
178. Philippine Estates Corporation (“PHES”) www.phes.net ✓
179. Philippine Long Distance Telephone Company (“TEL”) www.pldt.com.ph ✓
180. Philippine National Bank (“PNB”) www.pnb.com.ph ✓
181. Philippine National Construction Corporation (“PNC”) www.pncc.com.ph
182. Philippine Racing Club, Inc. (“PRC”) www.santa-ana-park.com ✓
183. Philippine Realty and Holdings Corporation (“RLT”) www.philrlty.com ✓
184. Philippine Savings Bank (“PSB”) www.psbank.com.ph ✓
185. Philippine Seven Corporation (“SEVN”) www.7-eleven.com.ph ✓
186. Philippine Telegraph and Telephone Corporation (“PTT”) www.ptt.net.ph
187. Philippine Tobacco Flue-Curing & Redrying Corporation (“TFC”) www.ptfc-brc.com/info ✓
188. Philippine Trust Company (“PTC”) www.philtrustbank.com ✓
189. PhilWeb Corporation (“WEB”) www.philweb.com.ph ✓
190. Phinma Corporation (“PHN”) www.phinmacorp.com.ph ✓
191. Phoenix Petroleum Philippines, Inc. (“PNX”) www.phoenixphilippines.com ✓
192. PICOP Resources, Inc. (“PCP”) ✓

46 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Listed Company Website Certification on
Compliance with
Corporate Governance Manual

193. PLDT Communications and Energy Ventures, Inc. (“PCEV”) www.piltel.com.ph ✓

194. PNOC Exploration Corporation (“PEC”) www.pnoc-ec.com.ph ✓
195. Polar Property Holdings Corporation (“PO”) www.polar.com.ph ✓
196. Premiere Horizon Alliance Corporation (“PHA”) - formerly Premiere Entertainment Philippines, Inc. www.pepinc.ph ✓
197. Prime Media Holdings, Inc. (“PRIM”) ✓
198. Prime Orion Philippines, Inc. (“POPI”) www.primeorion.com ✓
199. Primetown Property Group, Inc. (“PMT”)
200. Primex Corporation (“PRMX”) www.primexcorporation.com ✓
201. Pryce Corporation (“PPC”) www.prycegardens.com ✓
202. Puregold Price Club, Inc. (“PGOLD”) www.puregold.com.ph ✓
203. Republic Cement Corporation (“RCM”) ✓
204. Republic Glass Holdings Corporation (“REG”) www.repglass.net ✓
205. RFM Corporation (“RFM”) www.rfmfoods.com ✓
206. Rizal Commercial Banking Corporation (“RCB”) www.rcbc.com ✓
207. Robinsons Land Corporation (“RLC”) www.robinsonsland.com ✓
208. Roxas and Company, Inc. (“RCI”) www.roxascompany.com.ph ✓
209. Roxas Holdings, Inc. (“ROX”) www.rhi-cadp.com.ph ✓
210. San Miguel Brewery, Inc. (“SMB”) www.sanmiguelbrewery.com.ph ✓
211. San Miguel Corporation (“SMC”) www.sanmiguel.com.ph ✓
212. San Miguel Properties, Inc. (“SMP”) www.sanmiguelproperties.com.ph ✓
213. San Miguel Pure Foods Company, Inc. (“PF”) www.sanmiguelpurefoods.com ✓
214. Seafront Resources Corporation (“SPM”) www.seafrontresources.com.ph ✓
215. Security Bank Corporation (“SECB”) www.securitybank.com.ph ✓
216. Semirara Mining Corporation (“SCC”) www.semiraramining.com ✓
217. Shang Properties, Inc. (“SHNG”) www.shangproperties.com ✓
218. Sinophil Corporation (“SINO”) ✓
219. SM Development Corporation (“SMDC”) www.smdevelopment.com ✓
220. SM Investments Corporation (“SM”) www.sminvestments.com ✓
221. SM Prime Holdings, Inc. (“SMPH”) www.smprime.com ✓
222. Solid Group, Inc. (“SGI”) www.solidgroup.com.ph ✓
223. South China Resources, Inc. (“SOC”) www.southchinaresourcesinc.com.ph ✓
224. Southeast Asia Cement Holdings, Inc. (“CMT”) ✓
225. SPC Power Corporation (“SPC”) www.salconpower.com ✓
226. Splash Corporation (“SPH”) www.splash.com.ph ✓
227. Sta. Lucia Land, Inc. (“SLI”) www.stalucialand.com.ph ✓
228. Steniel Manufacturing Corporation (“STN”) ✓
229. Sun Life Financial Inc. (“SLF”) www.sunlife.com
230. Suntrust Home Developers, Inc. (“SUN”) www.suntrusthomedevelopers.com ✓
231. Supercity Realty Development Corporation (“SRDC”) www.supercity.com.ph ✓
232. Swift Foods, Inc. (“SFI”) ✓
233. Synergy Grid & Development Phils., Inc. (“SGP”) ✓
234. Tanduay Holdings, Inc. (“TDY”) www.tanduay.com ✓
235. The Philippine Stock Exchange, Inc. (“PSE”) www.pse.com.ph ✓
236. The Philodrill Corporation (“OV”) www.philodrill.com ✓
237. TKC Steel Corporation (“T”) www.tkcsteel.com ✓
238. Touch Solutions, Inc. (“TSI”) www.touchgroup.net
239. Trans-Asia Oil and Energy Development Corporation (“TA”) www.transasia-energy.com ✓
240. Transpacific Broadband Group Int`l. Inc. (“TBGI”) www.tbgi.net.ph ✓
241. Unioil Resources & Holdings Company, Inc. (“UNI”)
242. Union Bank of the Philippines, Inc. (“UBP”) www.unionbankph.com ✓
243. United Paragon Mining Corporation (“UPM”) www.unitedparagon.com ✓
244. Universal Robina Corporation (“URC”) www2.urc.com.ph ✓
245. Uniwide Holdings, Inc. (“UW”) www.uni-wide.com ✓
246. Vantage Equities, Inc. (“V”) www.ivantage.ph ✓
247. Victorias Milling Company, Inc. (“VMC”) www.victoriasmilling.com ✓
248. Vista Land & Lifescapes, Inc. (“VLL”) www.vistaland.com.ph ✓
249. Vitarich Corporation (“VITA”) www.vitarich.com ✓
250. Vivant Corporation (“VVT”) www.vivant.com.ph ✓
251. Vulcan Industrial & Mining Corporation (“VUL”) www.vulcanminingandpetroleum.webs.com ✓
252. Waterfront Philippines, Incorporated (“WPI”) www.waterfronthotels.com.ph ✓
253. Wellex Industries, Incorporated (“WIN”) www.wellex.com.ph ✓
254. Zeus Holdings, Inc. (“ZHI”) www.zeusholdingsinc.com ✓

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 47
 PSE BOARD
OF DIRECTORS
& Officers

ANABELLE Lim - Chua

D I R E CTO R Dakila B. Fonacier
I ndependent D I R E CTO R

David O. Chua
D I R E CTO R
Emmanuel O. Bautista
D I R E CTO R Francis Chua
Hans B. Sicat D I R E CTO R Eddie T. Gobing
P resident& C E O
D irector Jose T. Pardo D I R E CTO R
C hairman
I ndependent D irector

48 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Edgardo G. Lacson Omelita J. Tiangco
D I R E CTO R T reasurer

AMOR C. Iliscupidez Cornelio T. PeraltA Aissa V. Encarnacion

D I R E CTO R I ndependent D I R E CTO R Corporate S ecretary
Robert G. Vergara
D I R E CTO R
Eusebio H. Tanco
D I R E CTO R
Ma. Vivian YuchenGco
D I R E CTO R

Alejandro T. Yu
D I R E CTO R

AUDIT COMMITTEE
1. Cornelio T. P eralta (C hairman)
2. A nabelle L im-C hua
3. Dakila B. F onacier
4. A mor C. I liscupidez
5. A lejandro T. Y u
6. E usebio H. Tanco
capital markets
development committee
1. H ans B. S icat (C hairman)
2. J ose T. Pardo
3. A nabelle L im-C hua
4. Robert G. V ergara
5. E mmanuel O. B autista
6. M a. V ivian Y uchengco
corporate governance
committee
1. J ose T. Pardo (C hairman)
2. E dgardo G. Lacson
3. M a. V ivian Y uchengco
4. A mor C. I liscupidez
5. Cornelio T. P eralta
nominations & electionS Securities Regulation Code
committee amendments committee
1. R emy T. T igulo (C hairman) 1. M a. V ivian Y uchengco (C hairman)
2. Daisy P. A rce 2. David O. C hua
3. Cornelio T. P eralta 3. J ose T. Pardo
4. Dakila B. F onacier 4. F rancis C hua
5. E dgardo G. Lacson 5. E ddie T. G obing
(R esigned as of M arch 20, 2012) 6. H ans B. S icat
6. A I S S A V. E N CA R N AC I O n 7. Daisy P. A rce
( N O N-VOT I N G L E G A L M E M B E R) 8. I smael G. C ruz
9. A ntonio G arcia, J r.
10. Val A ntonio B. S uarez
11. Katherine L. S hih
12. Patricia M argarita R. Yaptinchay

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 49
 EXECUTIVE
OFFICERS

06
02
05
03 07 10
04
09 11
08
01

01 HANS B. SICAT 04 MARIETTA U. TAN 07 LEONARDO G. QUINITIO 10 TRISTAN G. GILLEGO

president and V ice P resident and H ead, A ssistant V ice P resident O fficer-I n-C harge,
chief executive officer controllership and and H ead, Capital markets T echnology D ivision /
treasury division development division H ead, I nfrastructure
and system administration
02 J.V ice
ARGEL G. ASTUDILLO
P resident and H ead, 05 JINKY A. ALORa 08 MARSHA ANGELYN M. RESURRECCION D epartment

11 BUENAVENTURA S. SANGUYO JR.

Corporate G overnance, A ssistant V ice P resident A ssistant V ice P resident
R isk & Compliance and H ead, trading participants and H ead, I ssuer regulation
regulation department / division O fficer-I n-C harge,
O I C, M arket R egulation D ivision O ffice of the general counsel
03 RACHELLE C. BLANCH
09 PRECILLA S. SANDOVAL
06 JOHN BENETTE B. MAMANGUN
V ice P resident and H ead,
M A R K E T O P E RAT I O N s D I V I S I O N A ssistant V ice P resident JOSELITo V. BANAAG
A ssistant V ice P resident and H ead, M arket data business G E N E RA L CO U N S E L
and H ead, Corporate planning department U N T I L 31 D E C E M B E R 2011
and communications department

50 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers

05
03
01
02 04
12
10
11
01 JOSE ANTONIO S. VILAR 06 MARVIN M. REFUERZO
H ead, M arketing services H ead, T rading O perations
department D epartment
02 JO ANN G. BAUTISTA 07 SHERYL J. LOPEZ
H ead, B usiness development A ssistant H ead,
department broker systems support
and certification department
03 JOSE CECILIO G. PENAFLOR 08 SHERYL V. PERILLO
A ssistant H ead, M arket
H ead, T rading D evelopment
education department
D epartment
04 JANET A. ENCARNACION
09 ROEL M. VILLANUEVA
H ead, D isclosure D epartment H ead, M arket Control
D epartment
05 JOSE VALERIANO B. ZUnO III
O fficer-in-charge,
L istings D epartment
10 MARIE GRACE A. SANTOs
Corporate G overnance and
strategy management O fficer
Department
& Section Heads
Officers-in-Charge
06
09
07 08
17
15
14
16
13
11 MARIA ELIZABETH S. LACSON
H ead, P ublic and investor
16 JOSIELYN S. ARELLANO
H ead, M aterials management and
relations section procurement services section
12 MARK FREDERICK V. VISDA 17 SEBASTIAN E. OLAIVAR, JR.
H ead, Corporate planning and H ead, H uman resources and ad-
research section ministration department
13 ELIZA S. RODRIGUEZ RENEE LYNN C. MICIANO
H ead, Accounting D epartment O fficer-I n-C harge, P RO S E C U T I O N
A N D E N F O RC E M E N T D E PA RT M E N T
U N T I L 31 D E C E M B E R 2011
ELISA L. BENAVIDEZ
14 H ead, B udget and T reasury
D epartment NINA A. AGUILAR
O fficer-I n-C harge, M A R K E T
S U RV E I L LA N C E D E PA RT M E N T
15 HERBERT G. VERGARA U N T I L 31 D E C E M B E R 2011
H ead, A dministrative
S ervices S ection
The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 51
 SCCP BOARD OF
DIRECTORS & OFFICERS

Francis Chua Alejandro T. Yu Renee D. Rubio

D I R E CTO R D I R E CTO R C hief O perating
O fficer

Cornelio T. PeraltA Omelita J. TianGco

ANABELLE Lim -Chua I ndependent D I R E CTO R T reasurer
D I R E CTO R Dakila B. Fonacier
D I R E CTO R
Aissa V. Encarnacion
Emmanuel O. Bautista Corporate S ecretary
D I R E CTO R Eddie T. Gobing
D I R E CTO R
Jose Luis S. javier
I ndependent D I R E CTO R

Hans B. Sicat
Jose T. Pardo P resident& C E O
C hairman D irector
I ndependent D irector

AMOR C. Iliscupidez
D I R E CTO R

52 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 CMIC BOARD OF
DIRECTORS & OFFICERS

Maria Ysabel J. Zamora

Alfonso B. Cruz Corporate S ecretary
D irector
Dakila B. Fonacier Cornelio T. PeraltA
D I R E CTO R
D I R E CTO R
Grace M. Calubaquib
Acting T reasurer

Jose Luis S. Javier

C hairman

Antonio Garcia, Jr.

P resident & C E O

* DAISY P. ARCE
L egal O fficer

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 53
 Information
Required by
THE Securities
Regulation Code
General Nature and Scope of Business
of Registrant and its Subsidiaries
The Philippine Stock Exchange, Inc. (PSE) 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, the Company
sold 6,077,505 shares from its unissued stock to five strategic investors
by way of private 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 data feed fees are collected from
data vendors.
Subsidiary and Affiliates
The Securities Clearing Corporation of the Philippines (SCCP) is
a wholly-owned PSE subsidiary organized primarily as a clearance,
settlement and depository 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 through 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 irrevocable
settlement.
The Capital Markets Integrity Corporation (CMIC) is another
wholly-owned PSE subsidiary. It functions as the independent audit,
surveillance and compliance unit of the Company, having taken
over the Market Regulation Division of the Company. CMIC operates
54 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
to ensure the integrity of the capital market and has jurisdiction
to investigate all violations of the Securities Regulation Code and
CMIC Rules by Trading Participants, and investigate trading-related
irregularities and unusual trading activities committed by Issuers.
The Securities and Exchange Commission granted CMIC its authority
to operate as the independent audit, surveillance and compliance unit
of the Company with provisional self-regulatory organization status
on 2 February 2012.
The Company is also a shareholder of the Philippine Dealing
System Holdings Corporation (PDSHC), the holding company of the
Philippine Dealing & Exchange Corporation (PDEX), otherwise known
as the Fixed Income Exchange (FIE), the Philippine Depository & Trust
Corp. (PDTC) and the Philippines Securities Settlement Corporation
(PSSC). As of December 31, 2010, the Company is a stockholder
of record of 1,311,439 shares, or 20.98%, of all of the issued and
outstanding shares.
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 office building in Bonifacio Global City for
the relocation of the Company’s headquarters, 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 on the Philippine Stock
Exchange, Inc.
Stock Prices Dividends
The high and low prices of the Company’s shares in the stock Dividends per Share:
exchange for each quarter of fiscal years 2010 and 2011 are as P8.80 in 2007.
follows:
P20.00 in 2008.

High and Low Prices of the Company’s shares Table 16 P8.00 in 2009.
2010 High Low
Q1 P160.00 P121.00
Q2 P156.25 P130.00
Q3 P250.00 P125.00
Q4 P214.00 P175.00
2011 High Low
Q1 P201.50 P170.00
Q2 P269.75 P187.50
Q3 P264.00 P204.80
Q4 P245.00 P215.00
The high and low prices of the Company’s shares during the year
are P269.75 and P170.00, respectively. The stock price of the Company
closed at P228.00 on 29 December 2011.
P10.00 in 2010.
P12.00 in 2011 broken down as P6.16 regular dividend and P5.84
special cash dividend to stockholders of record as of 24 March 2011
payable on 11 April 2011.
The Company also declared a 100 percent stock dividend to
stockholders of record as of 30 May 2011 payable on 08 June 2011.
Dividend Policy
The Company adopts a policy for the declaration of regular cash
dividend out of the unrestricted retained earnings equivalent to fifty
percent (50%) of the Company’s audited net income. The declaration
of dividends is dependent on the cash flow and financial condition
of the Company.

Holders Recent Sale of Unregistered/Exempt Securities

The number of shareholders of record as of 29 February 2012 is The common shares granted to eligible employees pursuant to the
216. Total shares outstanding as of 29 February 2012 is 61,008,721 Employee Stock Purchase Plan is an exempt transaction under Section
shares with a par value of P1.00. 10.2 of the Securities Regulation Code, as stated under Resolution
The top twenty (20) holders are shown in the table below. No. 179 Series of 2008 of the Securities and Exchange Commission.

Top Twenty Holders (as of 29 February 2012) Table 17

Stockholder Nationality No. of Shares Amount Percentage
1 PCD Nominee Corp. Filipino 41,920,555 41,920,555.00 68.71%
2 San Miguel Corporation Retirement Plan Filipino 6,296,000 6,296,000.00 10.32%
3 PCD Nominee Corp. Other Alien 2,653,490 2,653,490.00 4.35%
4 G.D. Tan & Company, Inc Filipino 201,800 201,800.00 0.33%
5 A.T. De Castro Sec. Corp. Filipino 200,000 200,000.00 0.33%
6 Ansaldo Godinez & Company, Inc. Filipino 200,000 200,000.00 0.33%
7 Apex Phils. Equities Corporation Filipino 200,000 200,000.00 0.33%
8 BDO Securities Corporation Filipino 200,000 200,000.00 0.33%
9 Christfund Securities (Phils.), Inc. Filipino 200,000 200,000.00 0.33%
10 CLSA Philippines, Inc. Filipino 200,000 200,000.00 0.33%
11 DBS Vickers Securities (Phils.), Inc. Filipino 200,000 200,000.00 0.33%
12 Deutsche Regis Partners, Inc. Filipino 200,000 200,000.00 0.33%
13 FEB Stock Brokers, Inc. Filipino 200,000 200,000.00 0.33%
14 G.K. Goh Securities (Phils.) Filipino 200,000 200,000.00 0.33%
15 Goldstar Securities, Inc. Filipino 200,000 200,000.00 0.33%
16 Chan, Vicky L. Filipino 200,000 200,000.00 0.33%
17 Chia Kim Teck Singaporean 200,000 200,000.00 0.33%
18 Chilip, Christopher L. Filipino 200,000 200,000.00 0.33%
19 Chong, Jose Filipino 200,000 200,000.00 0.33%
20 Cruz, Ismael G. Filipino 200,000 200,000.00 0.33%

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 55
 Report of
the Market
Integrity
Board

he Market Integrity Board (MIB) is pleased to report

on the results of its oversight of the Market Regulation Division’s
(MRD) regulatory functions for the calendar year 2011.

Mandate and Composition

The MIB is the entity which exercises control and supervision over the regulatory activities
of the MRD, independent of the Exchange’s own Board of Directors. It is composed of five regular
members, of which three are not affiliated with any trading participant. Of the three, one must
also be an independent director of the Exchange. The remaining two members are trading
participant representatives who are not directors of the Exchange. The regular members of the
MIB have alternates, as allowed by the rules.
The MIB’s oversight function over the MRD gives it the authority to review on appeal
decisions, resolutions and summary actions of the latter and to supervise its other regulatory
activities such as the promulgation of rules relating to audit, compliance and surveillance,
and the implementation of best practices in the governance of Trading Participants. Being
an independent body, its decisions and actions are appealable directly to the Securities and
Exchange Commission (SEC) and not to the Exchange’s Board.

Market Integrity Board: Accomplishments

In 2011, the MIB continued to perform its role in maintaining the integrity of the market
and minimizing the risk of the investing public. Its consistent and fair application of the
Amended Market Regulation Rules and other Rules of the Exchange, through its decisions,
various directives and guidelines, has guided the MRD in the discharge of its regulatory
functions. In the discharge of its power to review decisions and resolutions of the MRD,
the MIB resolved seventeen (17) cases upon appeal by the relevant parties on (a) the
CORNELIO T. PERALTa regulatory audit findings, (b) spot audit findings and (c) complaints of violations
C hairman
of the securities laws by certain trading participants.
The MIB ensured active participation by the Exchange with the SEC and other governmental
agencies on issues involving market regulation. Cases which were outside the Exchange’s
jurisdiction as an SRO were referred to the SEC. The MIB has been steadfast in carrying out
JOSE LUIS S. JAVIER its role to protect the market and the investing public by instructing the MRD to assist the
V ice C hairman
Department of Justice and individual investors in the prosecution of criminal complaints against
ANTONIO GARCIA, J R. erring Trading Participants. This has led to the apprehension and prosecution of officers and
M ember ( I ndependent )
directors of these Trading Participants in cases which are now pending with the Department
OMELITA J. TIANGCO of Justice and in the regular courts.
A lternate M ember ( I ndependent )

JEROME A. TAN Spin-Off of the Regulatory Functions

M ember ( T rading Participant )
MARIA LOURDES B. SISON
A lternate M ember ( T rading Participant )
RAYMOND M. TEMPONGKO
A lternate M ember ( T rading Participant )
The move towards regulatory independence was initiated in 2009, and through its persistent
efforts, with the support of the Exchange, the MIB has successfully seen to fruition the
organization of a separate and independent company, the Capital Markets Integrity Corporation
(CMIC), to take over the regulatory functions of the MRD. With the SEC’s approval of the CMIC’s
SRO status, the MIB’s vision towards regulatory independence has been achieved.

56 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Report of the
corporate
n behalf of the Corporate Governance Committee (the governance
Committee), I am pleased to report to the stockholders of the committee
Exchange the actions taken by the Committee in 2011. The
Committee aims to further strengthen the Philippine Stock
Exchange (PSE) as an institution and promote good governance
as a means to develop the capital markets through well-governed
companies, better protection of shareholder rights and interests, and
increased investor confidence in the market. In the conduct of its
activities, the Committee ensures that it fulfills its goals to improve
efficiency in operations, find the means necessary to increase the
confidence of investors and add value for all its stakeholders through
the promotion of good governance practices.

One important initiative aimed at promoting corporate governance in the local market is the
PSE Bell Awards for Corporate Governance, which was approved by the Committee and launched
in December 2011. The Bell Awards will recognize listed companies adhering to the highest
standards of corporate governance in the country and whose corporate governance practices
are at par with international standards and best practices. It will also acknowledge trading
participants which have demonstrated full or substantial compliance with laws, rules and
regulations while contributing to the performance and development of the stock market. The
Bell Awards will give recognition to the top five (5) listed companies and top three (3) trading
participants under two (2) categories (large and small) and shall be based on an objective
set criteria. Final selection of winners will be conducted by an expert, independent and
distinguished panel of judges. The Awards will be given out during an awarding ceremony to
be held in November 2012. The Bell Awards is envisioned to promote benchmark role models
of corporate governance and is intended to respond to the growing calls for better governance
and more corporate social responsibility for companies and other organizations internationally
and locally.

The Committee also updated the PSE Manual of Corporate Governance to institutionalize
the principles of good corporate governance in the Exchange. The Manual is intended to
create awareness within the organization, from the Board of Directors and Management to
the employees and stockholders of the Exchange, that corporate governance is a necessary
component of what constitutes sound strategic business management. Through the Manual,
the Board of Directors and the Management of the Exchange commit themselves to working
towards the observance and promotion of corporate governance principles and best practices
aimed at the attainment of the Exchange’s corporate goals.

Other activities by the Committee intended to improve the Exchange’s operations and
take care of its employees and other stakeholders include the endorsement or approval
of the following changes and programs:
• New PSE organizational structure
• Special Benefits for Women (as mandated by law)
• Hepatitis B Vaccination Program (as mandated by law which included PSE employees
and trading participants)
• Employee Stock Purchase Plan for 2012 JOSE T. Pardo
CHAIRMAN

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 57
 Report of
the audit
committee

T
he Audit Committee is the body tasked with assisting the Board
of Directors in the performance of its supervision and control
over the Exchange’s financial reporting process, system of
internal controls, audit process, and monitoring of the Exchange’s
compliance with applicable laws, rules and regulations. The Audit
Committee directly exercises oversight authority over the Exchange’s
financial management functions, as well as oversight and direct interface
functions with the Exchange’s internal and external auditors. It is
composed of six (6) members and chaired by an independent director.

In accordance with the mandate of the Audit Committee, the Committee confirms that:
• The Committee had a total of fifteen (15) meetings during the year, in which a majority
of the members were present;
• The Committee recommended to the Board of Directors the reappointment of SGV &
Co. to act as the Exchange’s independent external auditor for the year 2011, after an
evaluation of their qualifications and past performance, and taking into consideration
the recommendation of management;
• The Committee reviewed and approved the audit scope and approach of SGV & Co.,
assessed their performance in relation to their engagement, and approved all audit
services rendered for 2011, including the related fees for such services after concluding
that such services do not impair their independence;
• The Committee discussed and approved the scope, frequency and audit plan of the
Exchange’s Internal Auditor, reviewed the reports and recommendations of the Internal
CORNELIO T. PERALTa Auditor, which were based on a comprehensive and detailed review of the Exchange’s
Committee chairman operations, which included information technology and the new trading system,
PSEtrade, and ensured communication to management for appropriate and timely
corrective action;
• The Committee reviewed and discussed with management and SGV & Co. the annual
anabelle lIM - chua consolidated financial statements of the Exchange, and its subsidiaries, the Securities
M ember
Clearing Corporation of the Philippines and the Capital Markets Integrity Corporation,
as of December 31, 2011, before submission to the Board.
dakila b. fonacier
member These activities were performed in the following context:
• Management retains primary responsibility for the financial statements and reporting
process of the Exchange;
amor c. iliscupidez • SGV & Co. is responsible for expressing an opinion on the conformity of the Exchange’s
M ember
annual audited consolidated financial statements with Philippine Financial Reporting
Standards

eusebio h. tanco
M ember In keeping with the mandate of the Audit Committee, and based on the reviews and
discussions undertaken, the Committee recommended to the Board of Directors of the Exchange
(i) the inclusion of the Exchange‘s audited consolidated financial statements as of December
31, 2011 in the Annual Report to the Stockholders and (ii) the filing of the audited consolidated
alejandro t. yu financial statements with the Securities and Exchange Commission.
M ember

February 15, 2012.

58 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Statement of
Management's
Responsibility for
Financial Statements

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 59
 Independent
AuditorS'
Report

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 Subsidiaries, which comprise the consolidated balance sheets as
at December 31, 2011 and 2010, 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, 2011, 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

60 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
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 Subsidiaries
as at December 31, 2011 and 2010, and their financial performance and their cash flows
for each of the three years in the period ended December 31, 2011 in accordance with
Philippine Financial Reporting Standards.

SYCIP GORRES VELAYO & CO.

Belinda T. Beng Hui

Partner
C PA C ertificate N o. 88823
S E C Accreditation N o. 0943-A ( G roup A ),
M arch 18, 2010, valid until M arch 17, 2013
Tax I dentification N o. 153-978-243
B I R Accreditation N o. 08-001998-78-2009,
S eptember 30, 2009,
valid until S eptember 29, 2012
PT R N o. 3174580, J anuary 2, 2012, M akati C ity

M arch 14, 2012

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 61
 The Philippine Stock Exchange, Inc. and Subsidiaries
Consolodated Balance Sheets

December 31
2011 2010
ASSETS
Current Assets
Cash and cash equivalents (Notes 4, 5 and 6) P1,041,644,459 P389,145,482
Financial assets at fair value through profit or loss (Notes 4, 5 and 7) 207,881,747 –
Short-term available-for-sale investments (Notes 4, 5 and 8) 42,342,741 837,844,003
Receivables (Notes 4, 5 and 9) 72,441,797 87,932,429
Other current assets 33,198,310 25,517,115
Total Current Assets 1,397,509,054 1,340,439,029

Noncurrent Assets
Long-term available-for-sale investments (Notes 4, 5 and 8) 167,407,020 126,782,957
Property and equipment (Note 10) 520,108,725 570,316,797
Investment in an associate (Note 11) 172,745,546 142,681,484
Retirement asset (Note 23) 7,666,168 22,072,357
Deferred tax assets - net (Note 22) 9,149,513 12,988,855
Other noncurrent assets (Notes 4, 5 and 12) 11,025,035 67,076,726
Total Noncurrent Assets 888,102,007 941,919,176

P2,285,611,061 P2,282,358,205

LIABILITIES AND EQUITY

Current Liabilities
Accounts payable and other current liabilities (Notes 4, 5 and 13) P159,547,623 P146,583,228
Income tax payable 45,456,302 53,110,521
Deferred fees and others (Note 14) 23,321,548 55,541,007
Total Current Liabilities 228,325,473 255,234,756

Noncurrent Liability
Retirement liability (Note 23) 7,212,481 6,033,056

EQUITY
Capital stock (Notes 1 and 16) 61,208,733 30,704,370
Additional paid-in capital (Notes 1, 16 and 28) 1,018,810,564 1,018,810,564
Treasury stock (Note 16) (68,000,012) (68,000,007)
Retained earnings:
Unappropriated (Note 16) 574,354,178 564,718,740
Appropriated 71,000,000 71,000,000
Donated capital (Note 15) 387,637,585 387,637,585
Net unrealized gains on available-for-sale investments (Note 8) 5,062,059 16,219,141
Total Equity 2,050,073,107 2,021,090,393

P2,285,611,061 P2,282,358,205

See accompanying Notes to Consolidated Financial Statements.

62 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
The Philippine Stock Exchange, Inc. and Subsidiaries
Consolodated Statements of Comprehensive Income

Years Ended December 31

2011 2010 2009

REVENUES
Listing-related fees:
Listing P234,786,035 P230,624,139 P66,200,050
Listing maintenance 193,553,103 169,422,761 134,812,097
Processing 950,000 1,840,000 1,080,000
Service fees (Note 25) 254,034,164 215,604,239 177,575,563
Trading-related fees (Note 25):
Transaction 120,029,889 97,486,442 66,205,348
Block sales 22,229,243 23,251,314 33,210,297
Data feed 45,600,353 38,633,431 21,624,533
Subscription 14,996,700 16,658,219 18,243,119
Other revenues (Notes 25 and 29) 14,584,415 28,931,365 18,438,700
900,763,902 822,451,910 537,389,707

COST AND EXPENSES

Cost of services (Note 18) 167,795,456 130,727,295 110,763,875
General and administrative expenses (Note 19) 272,797,542 276,467,823 235,798,161
440,592,998 407,195,118 346,562,026

OTHER INCOME (EXPENSES)

Interest income (Note 17) 59,761,719 78,593,045 86,830,346
Equity net income of an associate (Note 11) 30,064,062 26,581,660 3,553,274
Gain on sale of financial assets at fair value through profit or loss (Note 7) 12,339,941 – –
Mark-to-market loss on financial assets at fair value through profit or loss (Note 7) (4,924,795) – –
Dividend income 2,010,485 31,200 30,950
Gain on sale of available-for-sale investments (Note 8) – 36,947,135 49,487
99,251,412 142,153,040 90,464,057

INCOME BEFORE INCOME TAX 559,422,316 557,409,832 281,291,738

PROVISION FOR INCOME TAX (Note 22) 153,230,159 139,912,541 73,548,490

NET INCOME 406,192,157 417,497,291 207,743,248

OTHER COMPREHENSIVE INCOME

Net unrealized gain (loss) on available-for-sale investments (Note 8) (11,157,082) (25,516,750) 25,301,403

TOTAL COMPREHENSIVE INCOME P395,035,075 P391,980,541 P233,044,651

Basic/Diluted Earnings Per Share (Note 24) P6.65 P6.83 P3.40

See accompanying Notes to Consolidated Financial Statements.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 63
64
The Philippine Stock Exchange, Inc. and Subsidiaries
Consolodated Statements of Changes in Equity

Net Unrealized
Gain on
Additional Retained Earnings Available
Paid-in Treasury Donated for-Sale
Capital Stock Capital Stock Unappropriated Appropriated Capital Investments
(Notes 1 and 16) (Notes 1, 16 and 28) (Note 16) (Note 16) (Note 16) (Note 15) (Note 8) Total
Balances at January 1, 2011 P30,704,370 P1,018,810,564 (P68,000,007) P564,718,740 P71,000,000 P387,637,585 P16,219,141 P2,021,090,393
Net income – – – 406,192,157 – – – 406,192,157
Other comprehensive income – – – – – – (11,157,082) (11,157,082)
Total comprehensive income – – – 406,192,157 – – (11,157,082) 395,035,075
Acquisition of treasury stock – – (5) – – – – (5)
Cash dividends – – – (366,052,356) – – – (366,052,356)
Stock dividends 30,504,363 – – (30,504,363) – – – –

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Balances at December 31, 2011 P61,208,733 P1,018,810,564 (P68,000,012) P574,354,178 P71,000,000 P387,637,585 P5,062,059 P2,050,073,107

Balances at January 1, 2010 P30,655,012 P1,000,614,613 (P68,000,007) P451,771,509 P71,000,000 P387,637,585 P41,735,891 P1,915,414,603
Net income – – – 417,497,291 – – – 417,497,291
Other comprehensive income – – – – – – (25,516,750) (25,516,750)
Total comprehensive income – – – 417,497,291 – – (25,516,750) 391,980,541
Share-based payments 49,358 18,195,951 – – – – – 18,245,309
Cash dividends – – – (304,550,060) – – – (304,550,060)
Balances at December 31, 2010 P30,704,370 P1,018,810,564 (P68,000,007) P564,718,740 P71,000,000 P387,637,585 P16,219,141 P2,021,090,393

Balances at January 1, 2009 P30,597,264 P982,167,102 (P68,000,008) P487,206,261 P71,000,000 P387,637,585 P16,434,488 P1,907,042,692
Net income – – – 207,743,248 – – – 207,743,248
Other comprehensive income – – – – – – 25,310,403 25,310,403
Total comprehensive income – – – 207,743,248 – – 25,301,403 233,044,651
Share-based payments 57,748 18,447,511 – – – – – 18,505,259
Reissuance of treasury stock – – 1 – – – – 1
Cash dividends – – – (243,178,000) – – – (243,178,000)
Balances at December 31, 2009 P30,655,012 P1,000,614,613 (P68,000,007) P451,771,509 P71,000,000 P387,637,585 P41,735,891 P1,915,414,603

See accompanying Notes to Consolidated Financial Statements.
The Philippine Stock Exchange, Inc. and Subsidiaries
Consolodated Statements of Cash Flows

Years Ended December 31

2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax P559,422,316 P557,409,832 P281,291,738
Adjustments for:
Depreciation (Notes 10, 18 and 19) 75,117,275 52,998,347 34,011,571
Interest income (Note 17) (59,761,719) (78,593,045) (86,830,346)
Equity in net income of an associate (Note 11) (30,064,062) (26,581,660) (3,553,274)
Retirement expense (Note 23) 16,587,999 10,824,369 12,014,599
Mark-to-market gain on financial assets at fair value through profit or loss (Note 7) (7,415,146) – –
Amortization of computer software (Note 12) 5,108,493 5,085,741 5,290,538
Gain on sale of available-for-sale investments (Note 8) – (36,947,135) (49,487)
Loss (gain) on disposal of property and equipment – 291,688 (207,301)
Loss on asset write-off (Note 12) – 13,692,355 –
Share-based payment expense (Note 28) – 6,463,639 4,368,827
Recovery of impairment losses (Notes 8 and 9) (2,206,760) (9,000) (4,701,263)
Income before working capital changes 556,788,396 504,635,131 241,635,602
Changes in operating assets and liabilities:
Decrease (increase) in:
Receivables 5,597,673 (64,354,370) 10,887,958
Other current assets (12,789,688) (1,763,726) (4,452,814)
Increase (decrease) in accounts payable and other current liabilities (19,255,064) 58,646,175 17,534,183
Cash generated from operations 530,341,317 497,163,210 265,604,929
Interest received 71,861,438 112,974,745 82,142,448
Income taxes paid (159,179,824) (116,244,171) (60,948,627)
Benefits paid (Note 23) (1,002,385) (745,767) –
Cash provided by operating activities 442,020,546 493,148,017 286,798,750
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale/maturities of:
Available-for-sale investments 826,243,352 477,404,381 493,311,295
Property and equipment 12,419,885 4,126,914 2,530,969
Acquisitions of:
Available-for-sale investments (Note 8) (82,523,235) (504,230,452) (185,396,971)
Financial assets at fair value through profit or loss (200,466,601) – –
Property and equipment (Note 10) (37,329,088) (118,549,865) (93,332,764)
Computer software (Note 12) – (13,770,880) –
Decrease (increase) in other noncurrent assets 58,186,479 (34,291,223) 5,941,273
Contribution to plan assets – (22,117,243) (23,938,052)
Net cash provided by (used in) investing activities 576,530,792 (211,428,368) 199,115,750
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share-based payment – 18,245,309 18,505,259
Reissuance (acquisition) of treasury stock (Note 16) (5) – 1
Dividend payments (Note 16) (366,052,356) (304,550,060) (243,178,000)
Net cash used in financing activities (366,052,361) (286,304,751) (224,672,740)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 652,498,977 (4,585,102) 261,241,760

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 389,145,482 393,730,584 132,488,824

CASH AND CASH EQUIVALENTS AT END OF YEAR P1,041,644,459 P389,145,482 P393,730,584

See accompanying Notes to Consolidated Financial Statements.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 65
 The Philippine Stock Exchange, Inc. and Subsidiaries
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 P36.8 million divided into 36.8 million shares with a par value of P1.00 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).
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 P1.00 per share. The remaining balance of the Membership Contributions
account of P277.4 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 16). Gross proceeds from the private placement
offering amounted to P726.3 million, inclusive of additional paid-in capital of P720.2 million representing premium over the par
value of the common stock. Expenses related to the offering amounting to P21.1 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. 
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.”
Capital Markets Integrity Corporation (CMIC), a 100% owned subsidiary of the Exchange, is a stock corporation organized on March 14,
2011 to function as the independent audit, surveillance and compliance unit of the PSE with the authority to adopt, enforce, implement
and interpret rules, guidelines and securities laws applicable to the operations and dealings of trading participants and other market
participants of the Exchange.
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 14, 2012.

2. Basis of Preparation and Consolidation, Changes in Accounting Policies, and Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Parent Company and the subsidiaries (collectively referred to as the
Group) have been prepared in accordance with Philippine Financial Reporting Standard (PFRS). PFRS includes statements named PFRS,
Philippine Accounting Standards (PAS) and Philippine Interpretations of International Financial Reporting Interpretations Committee
(IFRIC) issued by the Financial Reporting Standards Council.
The accompanying consolidated financial statements have been prepared on a historical cost basis, except for financial assets at fair
value through profit or loss (FVPL) and 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.

66 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Parent Company and its wholly-owned subsidiaries,
namely SCCP and CMIC. The subsidiaries are fully consolidated from the date of acquisition, being the date on which the Parent
Company obtains control, and continue to be consolidated until the date that such control ceases. Control is achieved where the
Parent Company has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities.
The financial statements of the subsidiaries 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.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of the following
amended PFRS and Philippine Interpretations which were adopted starting January 1, 2011:
• PAS 24, Related Party Disclosures (Amendment), effective for annual periods beginning on or after January 1, 2011
• PAS 32, Financial Instruments: Presentation – Classification of Rights Issue (Amendment), effective for annual periods
beginning on or after February 1, 2010
• Philippine Interpretation IFRIC 14, Prepayments of a Minimum Funding Requirement (Amendment), effective for annual periods
beginning on or after January 1, 2011
• Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments, effective for annual periods
beginning on or after July 1, 2010
• 2010 Improvements to PFRS, effective in 2011
The adoption of these standards or interpretations did not have a material impact on the consolidated financial statements
of the Group.
Standards Issued but not yet Effective
Standards issued but not yet effective as of the date of the Group’s consolidated financial statements are listed below. The Group
intends to adopt these standards when they become effective, unless otherwise stated.
• PAS 1, Financial Statement Presentation - Presentation of Items of Other Comprehensive Income - The amendments to PAS
1 changed the grouping of items presented in other comprehensive income. Items that could be reclassified (or “recycled”)
to profit or loss at a future point in time (for example, upon derecognition or settlement) would be presented separately from
items that will never be reclassified. The amendment affects presentation only and has therefore no impact on the Group’s
financial position or performance. The amendment becomes effective for annual periods beginning on or after July 1, 2012.
• PAS 12, Income Taxes - Recovery of Underlying Assets - The amendment clarified the determination of deferred tax on
investment property measured at fair value. The amendment introduces a rebuttable presumption that deferred tax on
investment property measured using the fair value model in PAS 40, Investment Property, should be determined on the
basis that its carrying amount will be recovered through sale. Furthermore, it introduces the requirement that deferred tax
on non-depreciable assets that are measured using the revaluation model in PAS 16 always be measured on a sale basis of the
asset. The amendment becomes effective for annual periods beginning on or after January 1, 2012. The Group does not expect
this amendment to have an impact on its consolidated financial statements.
• PAS 19, Employee Benefits (Amendment) - Amendments to PAS 19 range from fundamental changes such as removing
the corridor mechanism and the concept of expected returns on plan assets to simple clarifications and re-wording.
The amendment becomes effective for annual periods beginning on or after January 1, 2013. The Group is currently
assessing the impact of the amendment to PAS 19 on its consolidated financial statements.
• PAS 27, Separate Financial Statements (as revised in 2011) - As a consequence of the new PFRS 10, Consolidated Financial
Statements, and PFRS 12, Disclosure of Interests in Other Entities, what remains of PAS 27 is limited to accounting for
subsidiaries, jointly controlled entities, and associates in separate financial statements. The amendment becomes effective
for annual periods beginning on or after January 1, 2013. The Group is currently assessing the impact of this amendment
on its consolidated financial statements.
• PAS 28, Investments in Associates and Joint Ventures (as revised in 2011) - As a consequence of the new PFRS 11, Joint
Arrangements, and PFRS 12, PAS 28 has been renamed PAS 28, Investments in Associates and Joint Ventures, and describes
the application of the equity method to investments in joint ventures in addition to associates. The amendment becomes
effective for annual periods beginning on or after January 1, 2013. The Group is currently assessing the impact of this
amendment on its consolidated financial statements.
• PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities - These amendments to PAS
32 clarify the meaning of “currently has a legally enforceable right to set-off” and also clarify the application of the PAS

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 67
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

32 offsetting criteria to settlement systems (such as central clearing house systems) which apply gross settlement
mechanisms that are not simultaneous. While the amendment is expected not to have any impact on the net assets
of the Group, any changes in offsetting is expected to impact leverage ratios and regulatory capital requirements.
The amendments to PAS 32 are to be retrospectively applied for annual periods beginning on or after January 1, 2014.
• PFRS 7, Financial Instruments: Disclosures - Enhanced Derecognition Disclosure Requirements - The amendment requires
additional disclosure about financial assets that have been transferred but not derecognized to enable the user of the Group’s
financial statements to understand the relationship with those assets that have not been derecognized and their associated
liabilities. In addition, the amendment requires disclosures about continuing involvement in derecognized assets to enable
the user to evaluate the nature of, and risks associated with, the entity’s continuing involvement in those derecognized assets.
The amendment becomes effective for annual periods beginning on or after July 1, 2011. The amendment affects disclosures
only and has no impact on the Group’s financial position or performance.
• PFRS 7, Financial Instrument: Disclosures - Offsetting Financial Assets and Financial Liabilities - These amendments require
an entity to disclose information about rights of set-off and related arrangements (such as collateral agreements). The new
disclosures are required for all recognized financial instruments that are set off in accordance with PAS 32. These disclosures
also apply to recognized financial instruments that are subject to an enforceable master netting arrangement or ‘similar
agreement’, irrespective of whether they are set-off in accordance with PAS 32. The amendments require entities to disclose,
in a tabular format unless another format is more appropriate, the following minimum quantitative information. This
is presented separately for financial assets and financial liabilities recognized at the end of the reporting period:
a. The gross amounts of those recognized financial assets and recognized financial liabilities
b. The amounts that are set off in accordance with the criteria in PAS 32 when determining the net amounts presented
in the statement of financial position
c. The net amounts presented in the statement of financial position
d. The amounts subject to an enforceable master netting arrangement or similar agreement that are not otherwise included
in (b) above, including:
i. Amounts related to recognized financial instruments that do not meet some or all of the offsetting criteria in PAS 32
ii. Amounts related to financial collateral (including cash collateral)
e. The net amount after deducting the amounts in (d) from the amounts in (c) above
The amendments to PFRS 7 are to be retrospectively applied for annual periods beginning on or after January 1, 2013.
The amendment affects disclosures only and has no impact on the Group’s financial position or performance.
• PFRS 9, Financial Instruments: Classification and Measurement - PFRS 9 as issued reflects the first phase on the replacement
of PAS 39 and applies to classification and measurement of financial assets and financial liabilities as defined in PAS 39.
The standard is effective for annual periods beginning on or after January 1, 2015. In subsequent phases, hedge accounting
and impairment of financial assets will be addressed with the completion of this project expected in 2012. The Group will
quantify the effect in conjunction with the other phases, when issued, to present a comprehensive picture.
• PFRS 10, Consolidated Financial Statements - PFRS 10 replaces the portion of PAS 27, Consolidated and Separate Financial
Statements, that addresses the accounting for consolidated financial statements. It also includes the issues raised in SIC-12,
Consolidation - Special Purpose Entities. PFRS 10 establishes a single control model that applies to all entities including special
purpose entities. The changes introduced by PFRS 10 will require management to exercise significant judgment to determine
which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements
that were in PAS 27. This standard becomes effective for annual periods beginning on or after January 1, 2013. The Group
is currently assessing the impact of this amendment on its consolidated financial statements.
• PFRS 11, Joint Arrangements - PFRS 11 replaces PAS 31, Interests in Joint Ventures, and SIC-13, Jointly-controlled Entities
- Non-monetary Contributions by Venturers. PFRS 11 removes the option to account for jointly controlled entities using
proportionate consolidation. Instead, jointly-controlled entities that meet the definition of a joint venture must be accounted
for using the equity method. This standard becomes effective for annual periods beginning on or after January 1, 2013.
The Group does not expect this amendment to have an impact on its consolidated financial statements.
• PFRS 12, Disclosure of Interests in Other Entities - PFRS 12 includes all of the disclosures that were previously in PAS 27
related to consolidated financial statements, as well as all of the disclosures that were previously included in PAS 31 and PAS 28.
These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number
of new disclosures are also required. This standard becomes effective for annual periods beginning on or after January 1, 2013.
The standard affects disclosure only and has no impact on the Group’s financial position and results of operation.
• PFRS 13, Fair Value Measurement - PFRS 13 establishes a single source of guidance under PFRS for all fair value measurements.
PFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value
under PFRS when fair value is required or permitted. This standard becomes effective for annual periods beginning on or after

68 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 January 1, 2013. The Group is currently assessing the impact of this standard on its consolidated financial statements.
• Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate - 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. The SEC and the Financial Reporting Standards Council (FRSC)
have deferred the effectivity of this interpretation until the final Revenue standard is issued by International Accounting Standards
Board (IASB) and an evaluation of the requirements of the final Revenue standard against the practices of the Philippine real
estate industry is completed. The Group does not expect this amendment to have an impact on its consolidated financial
statements.
• Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine - This interpretation applies to
waste removal costs that are incurred in surface mining activity during the production phase of the mine (“production stripping
costs”) and provides guidance on the recognition of production stripping costs as an asset and measurement of the stripping
activity asset. This interpretation becomes effective for annual periods beginning on or after January 1, 2013. The Group does
not expect this amendment to have an impact on its consolidated financial statements.
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 purchase and sale of financial
assets, recognition and derecognition, as applicable, are done using settlement date accounting. Regular way purchases and sales are
purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention
in the market place.
Initial Recognition and Measurement. 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 FVPL, includes transaction costs.
Financial assets are classified into the following categories: financial assets 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 classification depends on the purpose for which the instruments are acquired or incurred 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 HTM investments and financial liabilities at FVPL as at December 31, 2011 and 2010.
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 consolidated statements 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.
Subsequent Measurement. The subsequent measurement of financial assets depends on their classification as described below:
Financial Assets at FVPL. Financial assets at FVPL include financial assets held for trading and financial assets designated upon initial
recognition as at FVPL.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 69
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives, including
any separated derivatives, are also classified under financial assets at FVPL, unless these are designated as hedging instruments in
an effective hedge or financial guarantee contracts. Gains or losses on investments held for trading are included in the consolidated
statements of comprehensive income. Interest income on investments held for trading is included in the consolidated statements of
comprehensive income. Instruments under this category are classified as current assets if these are held primarily for the purpose of
trading or expected to be realized/settled within 12 months from balance sheet date. Otherwise, these are classified as noncurrent
assets.
Financial assets may be designated by management at initial recognition as at FVPL when any of the following criteria is met:
• the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring
the assets or recognizing gains or losses on a different basis; or
• the assets are part of a group of financial assets, financial liabilities or both which are managed and their performance are
evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or
• the financial instrument contains an embedded derivative, unless the embedded derivative does not significantly modify the
cash flows or it is clear, with little or no analysis, that it would not be separately recorded.
Included under this category of financial assets at FVPL is the Group’s investment in management account which is designated
at FVPL and it is being managed on a fair value basis.
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 financial assets or financial assets at FVPL. After initial measurement, such assets are subsequently measured at
amortized cost in the consolidated balance sheets using the effective interest method, less allowance for impairment. Amortized cost
is calculated by taking into account any discount or premium on acquisition and fees that are an integral part of the effective interest
rate. Gains and losses are recognized in the profit or loss when the loans and receivables are derecognized and impaired, as well as
through the amortization process. 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.
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 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. 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. Interest earned while holding AFS investments is reported
as interest income using the effective interest rate method. AFS investments are classified as current assets if maturity is within 12
months from the balance sheet date. Otherwise, these are classified as noncurrent assets.
Included under this category are the Group’s investments in government securities, corporate bonds, and 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.
Included under this category are the Group’s accounts payable and other current liabilities (excluding payable to government
agencies).
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.

70 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheets 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 sheets.
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 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 future cash flows is discounted at the financial asset’s original effective interest rate (i.e., the
effective interest rate computed at initial recognition).
The carrying amount of the impaired 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 statements 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, which 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 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 statements 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 statements of comprehensive income, the impairment loss is reversed through the statements 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.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 71
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

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 statements 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 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 using 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
The residual values, useful lives and methods of depreciation are reviewed at each financial year-end, and adjusted prospectively,
if appropriate.
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 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.t
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 statements 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 statements
of comprehensive income.
Upon loss of significant influence over the associate, the Group measures and recognizes any retained 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 retained
investment and proceeds from disposal is recognized in the profit or loss.
Impairment of Nonfinancial Assets
The carrying values of property and equipment, computer software, and investment 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 recoverable

72 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 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 the 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 collected but not yet earned as at 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 to determine if it is acting as principal or agent. The Group has concluded that it is acting as
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.
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.
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.
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 Parent Company and SCCP’s
retirement cost is actuarially determined 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.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 73
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Past-service costs are recognized immediately in the consolidated statements 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.
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 subsidiaries.
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.
Value-added Tax (VAT). Revenue, expenses and assets are recognized, net of the amount of VAT. The net amount of VAT recoverable
from, or payable to, the taxation authority is included as part of “Other current assets“ or “Accounts payable and other current
liabilitites“ accounts in the balance sheets.
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 at 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 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 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.

74 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Earnings Per Share (EPS)
Basic EPS is calculated by dividing the net income for the year by the weighted average number of shares outstanding during the year.
Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding during the year, adjusted
for the effects of dilutive stock options. Stock options are deemed to have been converted into shares on the date when the options
were granted.
Operating Segments
For purposes of segment reporting, the Group does not have other reportable segments.
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 financial position at the end of the reporting period
(adjusting events) are reflected in the consolidated financial statements. Post-year-end events that are not adjusting events,
are disclosed in the notes to the consolidated financial statements when material.

3. Significant Accounting Judgments, Estimates and Assumptions

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.
Functional Currency. The functional currency of the Group is the currency of the primary economic environment in which the Group
operates. It is the currency that mainly influences the revenue from and cost of rendering services. Based on the economic substance
of the relevant underlying circumstances, the functional and presentation currency of the Group is the Philippine peso.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at reporting 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. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
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 at December 31, 2011 and 2010, allowance for impairment losses on AFS equity investments amounted to P2.9 million.
The carrying value of AFS equity investments amounted to P209.7 million and P964.6 million as at December 31, 2011 and 2010,
respectively (see Note 8).
Impairment of Receivables. The Group annually reviews its receivables that are individually significant to assess impairment.
If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, it collectively
assesses them for impairment. In determining whether an impairment loss should be recorded in the consolidated statements of
comprehensive income, the Group makes judgment as to whether there is any observable data indicating that there is a measurable

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 75
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

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 at December 31, 2011 and 2010, allowance for impairment losses on receivables amounted to P2.6 million and P4.8 million,
respectively. As at December 31, 2011 and 2010, the carrying values of receivables amounted to P72.4 million and P87.9 million,
respectively (see Note 9).
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 subsidiaries 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.
The carrying value of the investment in an associate amounted to P172.7 million and P142.7 million as at December 31, 2011
and 2010, respectively (see Note 11).
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 at December 31, 2011 and 2010, the aggregate carrying value of property and equipment and computer software amounted to
P520.3 million and P575.6 million, respectively (see Notes 10 and 12).
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 at December 31, 2011 and 2010, the Group recognized deferred tax asset amounting to P13.6 million and P19.6 million,
respectively. Unrecognized deferred tax asset amounted to P10.7 million and P9.0 million as at December 31, 2011 and 2010 (see
Note 22).
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 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 at December 31, 2011 and 2010, the present value of the defined benefit obligation amounted to P93.2 million and P69.2 million,
respectively, for the Parent Company and P10.8 million and P9.2 million, respectively, for SCCP (see Note 23).

76 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
4. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments consist of cash and cash equivalents, financial assets at FVPL, AFS investments, receivables
and accounts payable, accrued expenses and other current liabilities (excluding payable to government agencies). The main purpose
of these financial instruments is to raise finances for the Group’s operations. The Group has other financial assets or liabilities such
as receivables and accounts payable and other current liabilities which arise directly from its operations. It is the Group’s policy
not to directly 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.
The Parent Company’s BOD, management and the Corporate Governance Office review and agree on the policies of managing each
of these risks as summarized below.
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 also 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.
The tables below summarize the maturity profile of the Group’s financial assets held for liquidity purposes and financial liabilities
based on remaining contractual undiscounted payments.

As at December 31, 2011

Within a Year 1–2 Years More than 2 Years No Maturity Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P1,041,644,459 P– P– P– P1,041,644,459
Receivables:
Receivables from:
Trading participants 56,494,988 – – – 56,494,988
Listed companies 4,353,073 – – – 4,353,073
Data vendors 4,686,260 – – – 4,686,260
Accrued interest receivable 3,149,142 – – – 3,149,142
Advances to offices and employee 4,688,196 – – – 4,688,196
Others 1,647,084 – – – 1,647,084
Other noncurrent assets -
deposits in banks – – 326,961 – 326,961
Financial assets at FVPL – – 207,881,747 – 207,881,747
AFS investments:
Government debt securities:
Short-term 42,342,741 – – – 42,342,741
Long-term – – 135,154,591 – 135,154,591
Corporate bonds – – 31,716,429 – 31,716,429
Equity securities – – – 536,000 536,000
P1,159,032,943 P– P375,079,728 P536,000 P1,534,648,671

Financial Liabilities
Other financial liabilities:
Due to SEC P76,077,971 P– P– P– P76,077,971
Trade payables 41,130,159 – – – 41,130,159
Accrued expenses 27,966,242 – – – 27,966,242
Others 5,412,860 – – – 5,412,860
P150,587,232 P– P– P– P150,587,232

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 77
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

As at December 31, 2010

Within a Year 1–2 Years More than 2 Years No Maturity Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P389,145,482 P– P– P– P389,145,482
Receivables:
Receivables from:
Trading participants 45,008,470 – – – 45,008,470
Listed companies 19,125,112 – – – 19,125,112
Data vendors 4,639,676 – – – 4,639,676
Accrued interest receivable 15,248,861 – – – 15,248,861
Advances to offices and employees 5,956,957 – – – 5,956,957
Others 2,737,059 – – – 2,737,059
Other noncurrent assets - deposits in banks – – 321,879 – 321,879
AFS investments:
Government debt securities:
Short-term 837,844,003 – – – 837,844,003
Long-term – 20,879,105 53,603,964 – 74,483,069
Corporate bonds – 22,008,888 30,000,000 – 52,008,888
Equity securities – – – 291,000 291,000
P1,319,732,620 P42,887,993 P83,925,843 P291,000 P1,446,837,456

Financial Liabilities
Other financial liabilities:
Due to SEC P69,408,451 P– P– P– P69,408,451
Trade payables 28,888,681 – – – 28,888,681
Accrued expenses 24,593,724 – – – 24,593,724
Others 4,081,865 – – – 4,081,865
P126,972,721 P– P– P– P126,972,721

Credit Risk
Credit risk refers to the potential loss arising from failure by the Group’s counterparties to fulfill their contractual obligations,
as and when they fall due. The Group’s credit risk exposure arises mainly from receivables from trading participants on clearing
related services for securities transactions, membership fees and other fees, receivable from listed companies on listing maintenance
fees and receivable from market data vendors for data feed charges. To minimize credit risk, the Group monitors the financial health
of clearing participants and takes note of participants with potential default.
The credit risk of the Group’s other financial assets, which comprise cash and cash equivalents and AFS investments, arises from
default of the counterparty with a maximum exposure equal to their carrying the amounts of these instruments. The fair values
of these financial instruments are disclosed in Note 5.

78 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 The tables below show the aging analysis of the Company’s financial assets as at December 31, 2011 and 2010:

2011
Past Due but not Impaired
Neither Past Over 180 Days Past Due
Due nor 30 to 60 60 to 120 120 to 180 but Less than And
Impaired Days Days Days 360 Days Impaired Total
Financial assets
Loans and receivables:
Cash and cash equivalents* P1,041,515,911 P– P– P– P– P– P1,041,515,911
Receivables:
Receivables from:
Trading participants 56,119,529 272,791 – – – 102,668 P56,494,988
Listed companies 575,862 – – – 1,302,933 2,474,278 4,353,073
Data vendors 4,660,232 – – – 26,028 – 4,686,260
Accrued interest receivable 3,149,142 – – – – – 3,149,142
Advances to officers
and employees 4,450,196 98,000 – 98,000 42,000 – 4,688,196
Others 1,257,468 30,000 320,616 39,000 – 27,000 1,674,084
Other noncurrent assets -
deposits in banks 326,961 – – – – – 326,961
Financial assets at FVPL 207,881,747 – – – – – 207,881,747
AFS investments:
Government debt securities:
Short-term 42,342,741 – – – – – 42,342,741
Long-term 135,154,591 – – – – – 135,154,591
Corporate bonds 31,716,429 – – – – – 31,716,429
Equity securities 536,000 – – – – – 536,000
P1,529,686,809 P400,791 P320,616 P137,000 P1,370,961 P2,603,946 P1,534,520,123
*Excluding cash on hand amounting to P0.1 million.

2010
Past Due but not Impaired
Neither Past Over 180 Days Past Due
Due nor 30 to 60 60 to 120 120 to 180 but Less than And
Impaired Days Days Days 360 Days Impaired Total
Financial assets
Loans and receivables:
Cash and cash equivalents* P389,044,969 P– P– P– P– P– P389,044,969
Receivables:
Receivables from:
Trading participants 44,576,242 349,440 – – 15,000 67,788 45,008,470
Listed companies 206,960 686,500 256,000 6,564,000 6,695,734 4,715,918 19,125,112
Data vendors 3,020,326 – 1,619,350 – – 4,639,676
Accrued interest receivable 15,248,861 – – – – –15,248,861
Advances to officers
and employees 3,553,225 825,982 – – 1,577,750 – 5,956,957
Others 2,344,207 252,852 – 140,000 – 27,000 2,764,059
Other noncurrent assets -
deposits in banks 321,879 – – – – – 321,879
Financial assets at FVPL – – – – – – –
AFS investments:
Government debt securities:
Short-term 837,844,003 – – – – – 837,844,003
Long-term 74,483,069 – – – – – 74,483,069
Corporate bonds 52,008,888 – – – – – 52,008,888
Equity securities 291,000 – – – – – 291,000
P1,422,943,629 P2,114,774 P1,875,350 P6,704,000 P8,288,484 P4,810,706 P1,446,736,943
*Excluding cash on hand amounting to P0.1 million.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 79
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

The following tables provide information regarding the credit risk exposure of the Group by classifying financial assets according to
credit ratings of the counterparties:

2011
Neither Past Due nor Impaired Past Due
High Grade Medium Grade Low Grade Total but not Impaired Total
Loans and Receivables
Cash and cash equivalents P1,041,515,911 P– P– P1,041,515,911 P– P1,041,515,911
(excluding cash on hand)
Receivables
Receivables from:
Trading participants 56,119,529 – – 56,119,529 272,791 56,392,320
Listed companies 575,862 – – 575,862 1,302,933 1,878,795
Data vendors 4,660,232 – – 4,660,232 26,028 4,686,260
Accrued interest receivable 3,149,142 – – 3,149,142 – 3,149,142
Other receivables 5,707,664 – – 5,707,664 627,616 6,335,280
Other assets - deposits in banks 326,961 – – 326,961 – 326,961
Financial Assets at FVPL 207,881,747 – – 207,881,747 – 207,881,747
AFS Investments
Government debt securities:
Short-term 42,342,741 – – 42,342,741 – 42,342,741
Long-term 135,154,591 – – 135,154,591 – 135,154,591
Corporate bonds 31,716,429 – – 31,716,429 – 31,716,429
Equity securities 536,000 – – 536,000 – 536,000
Total Financial Assets P1,529,686,809 P– P– P1,529,686,809 P2,229,368 P1,531,916,177
*Excluding cash on hand amounting to P0.1 million.

2010
Neither Past Due nor Impaired Past Due
High Grade Medium Grade Low Grade Total but not Impaired Total
Loans and Receivables
Cash and cash equivalents P389,044,969 P– P– P389,044,969 P– P389,044,969
(excluding cash on hand)
Receivables
Receivables from:
Trading participants 44,576,242 – – 44,576,242 364,440 44,940,682
Listed companies 206,960 – – 206,960 14,202,234 14,409,194
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
Other receivables 5,897,432 – – 5,897,432 2,796,584 8,694,016
Other assets - deposits in banks 321,879 – – 321,879 – 321,879
AFS Investments
Government debt securities:
Short-term 825,476,739 12,367,264 – 837,844,003 – 837,844,003
Long-term 74,483,069 – – 74,483,069 – 74,483,069
Corporate bonds 52,008,888 – – 52,008,888 – 52,008,888
Equity securities 291,000 – – 291,000 – 291,000
Total Financial Assets P1,410,576,365 P12,367,264 P– P1,422,943,629 P18,982,608 PP1,441,926,237
*Excluding cash on hand amounting to P0.1 million.

80 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 The credit quality of the financial assets was determined as follows:
Cash and cash equivalents - based on the nature of the counterparty. High grade pertains to cash and cash equivalents deposited
or invested in top local banks.
Financial assets at FVPL - based on the nature of the counterparty. High grade pertains to investments in fund management account
through Investment Management Account deposited or invested in top local banks.
AFS investments – investments in debt securities are based on the nature of the counterparty. High grade debt securities pertain
to bonds and notes issued by the Philippine government, except for dollar-denominated government bonds which are considered
medium grade due to sovereign and foreign currency risk considerations.
Receivables - high grade pertains to receivables with no default in payment by the borrower; medium grade pertains to receivables
with up to 3 defaults in payment by the borrower and low grade pertains to receivables with more than 3 defaults in payment by the
borrower.
The Group does not have any significant exposure to any individual customer or counterparty nor does it have any major concentration
of credit risk related to any financial instrument.
In the selection of investment, capital preservation is the primary consideration of the Group. With this objective, funds are basically
invested in government bonds and securities and duly registered with the Registry of Scripless Securities under the name of the Group.
For US dollar-denominated placements, the Group maintains a third party custodian bank.
The Treasury Manager is responsible for the identification of investments that provide a relatively stable rate of return and submit
these identified investments to the Vice President for Finance and Investments Division who endorses it to the Treasurer or President
for approval. The Exchange is guided by a BOD approved investment policy guidelines. Any exemption to the set policy is subject
to the approval of the BOD. In addition, on a monthly basis, the Treasurer reports the investment portfolio performance and
management’s performance associated with the investment portfolio to the BOD.
Market Risk
The Group’s market risk (the risk of loss to future earnings, to fair values or to future cash flows that may result from changes in market
variables) originates from its holdings of debt securities. The value of a financial instrument may change as a result of changes in
interest rates, foreign currency exchanges rates and other market changes.
Equity Price Risk. Equity price risk is the risk to earnings or capital arising from changes in stock exchange indices. The Group’s
exposure to equity price risk relates primarily to its quoted AFS financial assets.
The Group’s policy is to maintain the risk to an acceptable level by monitoring regularly the movement of share prices to determine the
impact on its financial position.
As at December 31, 2011 and 2010, the Group’s exposure to equity price risk is minimal.
Fair Value Interest Rate Risk. The Group follows a prudent policy on managing its assets and liabilities so as to ensure that exposure to
fluctuations in interest rates are kept within acceptable limits. There are no floating rate financial assets and financial liabilities. Term
deposits with banks and debt securities carry fixed rates throughout the period of deposit or placement.
The table below sets forth the sensitivity to a reasonable possible change in interest rates with all other variables held constant, of
the Group’s equity (through the impact on unrealized gain/loss on AFS fixed rate debt securities). The impact on the Group’s equity
already excludes the impact on transactions affecting the statements of comprehensive income.

Effect on Equity
2011 2010
(In Millions)
Changes in interest rates:
+70 basis points (P5.4) (P3.8)
-70 basis points 5.6 3.8

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 81
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

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 Exchange’s exposure to foreign currency risks arise primarily from US
dollar transactions, mostly from cash and cash equivalents and investments in debt securities.
The Group’s policy is to maintain foreign currency exposure within acceptable limits. The Group believes that its profile of foreign
currency exposure on its assets and liabilities is within conservative limits.
  The following table summarizes the exposure to foreign currency exchange risk as at December 31, 2011 and 2010:

2011 2010
In USD In P In USD In P
Financial assets:
Cash and cash equivalents $692,963 P30,379,498 $300,444 P13,171,463
Long-term AFS investments – – 280,703 12,306,026
Receivables 98,519 4,319,073 118,278 5,185,314
$791,482 P34,698,571 $699,425 P30,662,803

In translating the foreign currency-denominated monetary assets and liabilities into Philippine Peso amounts, the exchange rate used
was P43.84 to US$1.00, the Philippine Peso to U.S. Dollar exchange rate as at December 31, 2011 and 2010.
The table below indicates the effect of increase or decrease in US dollar exchange rate on income before income tax to which the
Group has substantial exposures on its financial assets. The result calculates the effect of a reasonably possible change in the spot
rates, when all other variables are held constant. Negative values in the table reflect a potential reduction in income while a positive
amount reflects a potential increase.
2011 2010
USD Effect on Income USD Effect on Income
Strengthens/ Before tax Strengthens/ Before Tax
(Weakens) (in millions) (Weakens) (in millions)

5% P1.7 5% P1.5
(5%) (1.7) (5%) (1.5)

The increase in P rate as against US$ rate demonstrates weaker functional currency while the decrease represents stronger Philippine
Peso value.
There is no other impact on the equity other than those already affecting the consolidated statement of comprehensive income.

82 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
5. Fair Value Measurement and Fair Value Hierarchy
The table below presents a comparison of the carrying amounts and estimated fair values by category and by class of the Group’s
financial instruments:

2011 2010
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Loans and receivables:
Cash and cash equivalents P1,041,644,459 P1,041,644,459 P389,145,482 P389,145,482
Receivables
Receivables from:
Trading participants 56,392,320 56,392,320 44,940,682 44,940,682
Listed companies 1,878,795 1,878,795 14,409,194 14,409,194
Data vendors 4,686,260 4,686,260 4,639,676 4,639,676
Accrued interest receivable 3,149,142 3,149,142 15,248,861 15,248,861
Advances to officers and employees 4,688,196 4,688,196 5,956,957 5,956,957
Others 1,647,084 1,647,084 2,737,059 2,737,059
Other assets - deposits in banks 326,961 326,961 321,879 321,879
Financial assets at FVPL 207,881,747 207,881,747 – –
AFS investments:
Government debt securities
Short-term 42,342,741 42,342,741 837,844,003 837,844,003
Long-term 135,154,591 135,154,591 74,483,069 74,483,069
Corporate bonds 31,716,429 31,716,429 52,008,888 52,008,888
Equity securities 536,000 536,000 291,000 291,000
P1,532,044,725 P1,532,044,725 P1,442,026,750 P1,442,026,750

Financial Liabilities
Other financial liabilities:
Accounts payable and other current liabilities:
Due to SEC P76,077,971 P76,077,971 P69,408,451 P69,408,451
Trade payables 41,130,159 41,130,159 28,888,681 28,888,681
Accrued expenses 27,966,242 27,966,242 24,593,724 24,593,724
Others 5,412,860 5,412,860 4,081,865 4,081,865
P150,587,232 P150,587,232 P126,972,721 P126,972,721

The methods and assumptions used by the Group in estimating the fair value of the financial instruments are:
Cash and Cash Equivalents, Receivables and Accounts Payable and Other Current Liabilities
The carrying amounts approximate the fair values due to the short-term maturities of these financial instruments.
Financial Assets at FVPL and 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 by valuation techniques:
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.
As at December 31, 2011 and 2010, the Group’s financial assets at FVPL and AFS investments, which are measured at fair value, are
categorized under level 1 of the fair value hierarchy. During the years ended December 31, 2011 and 2010, there were no transfer
between level 1 and level 2 fair value measurements. There are no financial instruments classified under levels 2 and 3.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 83
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

6. Cash and Cash Equivalents

This account consists of:
2011 2010
Cash on hand and in banks P55,962,131 P44,322,715
Time deposits 985,682,328 344,822,767
P1,041,644,459 P389,145,482

Cash in banks earn interest at the respective bank deposit rates. Time deposits are made for varying periods with original maturity
of three months or less from dates of placement and earn interest rates ranging from 4.56% to 4.69%, 3.00% to 4.06% and 4.06% to
4.25% in 2011, 2010 and 2009, respectively (see Note 17).
Interest income earned from cash and cash equivalents amounted to P33.4 million, P10.9 million and P11.3 million in 2011, 2010 and
2009, respectively (see Note 17).

7. Financial Assets at FVPL

In 2011, the Group invested in shares of stock which are quoted in the market and is being managed by third party banks under an
investment management agreement. The fair value of the investment as at December 31, 2011 amounted to P207.9 million.
In 2011, mark-to-market loss and gain on sale of financial assets at FVPL amounted to P4.9 million and P12.3 million, respectively,
which are included under “Other income (expenses)” in the consolidated statement of comprehensive income.
Interest income earned from financial assets at FVPL amounted to P0.8 million for the year ended December 31, 2011 (see Note 17).
The Group has no financial assets at FVPL in 2010.

8. Available-for-sale Investments
This account consists of:

2011 2010
Short-term government debt securities P42,342,741 P837,844,003
Long-term:
Government debt securities 135,154,591 74,483,069
Corporate bonds 31,716,429 52,008,888
166,871,020 126,491,957
Equity securities 3,414,000 3,169,000
Less allowance for impairment losses 2,878,000 2,878,000
536,000 291,000
Total long-term available-for-sale investments 167,407,020 126,782,957
P209,749,761 P964,626,960

The short-term government debt securities earn annual interest rates ranging from 4.25% to 11.00%, 4.07% to 11.00% and 4.25% to
11.20% in 2011, 2010 and 2009, respectively.
Peso-denominated long-term government debt securities earn annual interest rates ranging from 5.75% to 6.00%, 5.25% to 11.00%
and 4.25% to 11.20% in 2011, 2010 and 2009, respectively, while US dollar-denominated debt securities earn annual interest rates
ranging from 8.25% to 8.38% and 6.34% to 9.20% in 2010 and 2009, respectively (see Note 17).
Interest income earned from AFS investments amounted to P25.6 million, P67.7 million and P75.4 million in 2011, 2010 and 2009,
respectively (see Note 17).

84 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 As at December 31, 2011 and 2010, movements of net unrealized gain on AFS investments are as follows:
2011 2010
Balance at beginning of year P16,219,141 P41,735,891
Net unrealized gains (losses) on AFS investments for the year (11,157,082) 11,430,385
Realized gain transferred to statements of comprehensive income – (36,947,135)
Net change in fair value (11,157,082) (25,516,750)
Balance at end of year P5,062,059 P16,219,141

The rollforward analysis of the Group’s AFS investments as follows:

2011 2010
Balance at beginning of year P964,626,960 P926,370,504
Acquisitions 82,523,235 504,230,452
Maturities (826,243,352) (322,187,697)
Disposals – (118,269,549)
Net change in fair value (11,157,082) (25,516,750)
P209,749,761 P964,626,960

9. Receivables
This account consists of:
2011 2010
Receivables from:
Trading participants (Note 25) P56,494,988 P45,008,470
Listed companies 4,353,073 19,125,112
Data vendors 4,686,260 4,639,676
Accrued interest receivable 3,149,142 15,248,861
Advances to officers and employees 4,688,196 5,956,957
Others 1,674,084 2,764,059
75,045,743 92,743,135
Less allowance for impairment losses 2,603,946 4,810,706
P72,441,797 P87,932,429

Receivables generally have terms of 30 days, except for the receivables from data vendors which are normally collected within 45 days.
As at December 31, 2011 and 2010, receivables from trading participants and listed companies with total carrying value of P2.6 million
and P4.8 million, respectively, which were specifically identified to be impaired, were fully provided with allowance.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 85
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

The movements in the allowance for impairment losses follow:

2011
Trading Listed
Participants Companies Others Total
Balance at beginning of year P67,788 P4,715,918 P27,000 P4,810,706
Provision for impairment loss 34,880 480,000 – 514,880
Recoveries – (2,721,640) – (2,721,640)
Balance at end of year P102,668 P2,474,278 P27,000 P2,603,946

2010
Brokers Listed
Companies Others Total
Balance at beginning of year P861,658 P5,642,118 P27,000 P6,530,776
Write-off (784,870) (926,200) – (1,711,070)
Recoveries (9,000) – – (9,000)
Balance at end of year P67,788 P4,715,918 P27,000 P4,810,706

10. Property and Equipment

The composition of and movements in property and equipment are as follows:

December 31, 2011

Office Furniture,
Fixtures,
Trading Computer Communication
System Building Hardware Equipment Transportation
Land Buildings Equipment Improvements and Peripherals and Others Equipment Total
Cost
At beginning of year P155,690,154 P224,895,034 P447,398,401 P151,269,826 P170,766,432 P77,123,568 P14,411,995 P1,241,555,410
Additions – – 66,964 6,902,981 20,744,076 6,457,746 3,157,321 37,329,088
Disposals – – – (3,232,696) (5,050,583) (4,125,479) (4,969,231) (17,377,989)
At end of year – 224,895,034 447,465,365 154,940,111 186,459,925 79,455,835 12,600,085 1,261,506,509
Accumulated Depreciation
At beginning of year – 143,981,656 195,554,242 123,380,386 140,206,805 62,757,533 5,357,991 671,238,613
Depreciation – 8,995,801 39,290,144 6,595,119 13,961,610 4,127,657 2,146,944 75,117,275
Disposals – – – – (135,252) (2,767,491) (2,055,361) (4,958,104)
At end of year – 152,977,457 234,844,386 129,975,505 154,033,163 64,117,699 5,449,574 741,330,815
Net Book Value P155,690,154 P71,917,577 P212,620,979 P24,964,606 P32,426,762 P15,338,136 P7,150,511 P520,108,725

December 31, 2010

Office Furniture,
Fixtures,
Trading Computer Communication
System Building Hardware Equipment Transportation
Land Buildings Equipment Improvements and Peripherals and Others Equipment Total
Cost
At beginning of year P155,690,154 P224,895,034 P376,534,034 P127,179,374 P163,667,471 P72,122,965 P15,964,190 P1,136,053,222
Additions – – 70,864,367 24,090,452 12,852,107 5,029,712 5,713,227 118,549,865
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 77,123,568 14,411,995 1,241,555,410
Accumulated Depreciation
At beginning of year – 134,985,854 174,562,243 119,941,517 132,255,638 59,290,683 5,833,406 626,869,341
Depreciation – 8,995,802 20,991,999 3,438,869 13,692,801 3,495,958 2,382,918 52,998,347
Disposals – – – – (5,741,634) (29,108) (2,858,333) (8,629,075)
At end of year – 143,981,656 195,554,242 123,380,386 140,206,805 62,757,533 5,357,991 671,238,613
Net Book Value P155,690,154 P80,913,378 P251,844,159 P27,889,440 P30,559,627 P14,366,035 P9,054,004 P570,316,797

86 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 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.
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 Exchange Plaza Condominium for the purpose of holding title to the parcel
of land where the Exchange Plaza is located and other common areas of the condominium. The PSE’s share in the parcel of land
where the condominium is located and the common areas of the condominium is classified under Land. The donation is divided into
two tranches consisting of 120 and 176 shares, each valued at P63,117,630 and P92,572,524, respectively. Such shares were received
by the Exchange on December 29, 1994 for the 120 shares and on January 15, 1995 for the 176 shares and were valued at fair market
value of the land at the time of donation.
Trading System Equipment. This represents software and hardware costs. Software costs can not be separately classified as an
intangible asset as this is an integral part of the related hardware.

11. Investment in an Associate

This account represents the 20.98% interest in Philippine Dealing System (PDS) Holdings:

2011 2010
Acquisition cost P137,050,657 P137,050,657
Accumulated income (loss) of investee:
Balance at beginning of year 26,120,245 (461,415)
Share in net income of investee 30,064,062 26,581,660
Balance at end of year 56,184,307 26,120,245
Impairment losses at beginning and end of year (20,489,418) (20,489,418)
P172,745,546 P142,681,484

Summarized financial information of PDS Holdings is as follows (amounts in millions):

2011 2010
Total assets P915.1 P790.0
Total liabilities 90.1 111.5
Revenue 601.3 568.6
Net income 143.3 126.7

12. Other Noncurrent Assets

This account consists of:
2011 2010
Other investments (Note 15) P10,480,181 P10,480,181
Deposits in banks 326,961 321,879
Computer software - net 153,858 5,262,351
Deposit for future subscription – 50,000,000
Prepaid tax – 958,208
Others 64,035 54,107
P11,025,035 P67,076,726

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 87
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

Deposit for Future Subscription. This represents the Group’s capital infusion for the incorporation of the Exchange’s wholly owned and
self regulatory company, CMIC, in 2010 (see Note 1).
Deposits in Banks. These represent the balance of P0.3 million in deposits in bank posted by the Parent Company in favor of National
Labor Relations Commission (NLRC) in connection with 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 at December 31, 2010, certain labor
cases under NLRC have been finalized in favor of the Exchange. Thus, the previously restricted security deposits for the surety bonds
amounting to P15.1 million were withdrawn and transferred to cash equivalents accordingly.
Other Investments. These pertain to the donation of Fort Bonifacio Development Corporation (FBDC) in favor of the Parent Company of
10,480,181 shares of Crescent West Development Corporation (CWDC) (see Note 15).
Computer Software. The movements in this account follows:

2011 2010
Cost:
Balance at beginning of year P36,547,566 P36,469,041
Additions – 13,770,880
Write-off – (13,692,355)
Balance at end of year 36,547,566 36,547,566
Accumulated amortization:
Balance at beginning of year 31,285,215 26,199,474
Additions (Note 18) 5,108,493 5,085,741
Balance at end of year 36,393,708 31,285,215
Net book value P153,858 P5,262,351

In October 2010, the Parent’s BOD authorized the termination of the letter of intent with New 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 upon termination, this was reported as a loss on asset write-off amounting to P=13.7 million. As at December 31, 2010,
no depreciation expense was recorded since the asset was never used.

13. Accounts Payable and Other Current Liabilities

This account consists of:

2011 2010
Due to SEC P76,077,971 P69,408,451
Trade payables 41,130,159 28,888,681
Accrued expenses:
Compensation and other related staff costs 12,768,090 10,739,580
Repairs and maintenance 3,768,390 2,085,174
Occupancy costs 3,270,303 3,324,981
Professional fees 2,379,121 2,628,681
Travel and transportation 790,027 638,212
Telecommunication 219,961 1,100,677
Penalties 182,500 2,144,943
Other accrued expenses 4,587,850 1,931,476
Payable to government agencies 8,960,391 19,610,507
Others 5,412,860 4,081,865
P159,547,623 P146,583,228

Due to SEC represents the amount payable for license fees to operate an exchange imposed under Section 35 of the SRC entitled
“Additional Fees of Exchanges”, which are subsequently billed and collected from active trading participants.
Trade payables, accrued expenses, payable to government agencies and others are noninterest-bearing and are normally settled within
the next financial year.

88 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
14. Deferred Fees and Others
This account consists of:

2011 2010
Listing fees P10,534,202 P26,333,610
Fines and penalties 1,525,001 12,397,665
Data feed income 7,553,813 6,698,183
Deferred output tax 1,865,382 5,176,621
Listing maintenance fees – 4,180,000
Other fees 1,843,150 754,928
P23,321,548 P55,541,007

15. Donated Capital

As at December 31, 2011 and 2010, this account consists of donations from:

ALI (Note 10) P235,690,154

PRHC (Note 10) 139,542,000
FBDC (Note 12) 10,480,181
United States Agency International Development 1,925,250
P387,637,585
On November 12, 2002, the Parent Company and FBDC 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 unified trading
operations in equity securities for the National Capital Region (NCR) to the Bonifacio Global City; (ii) CWDC shall be the corporate
vehicle to which FBDC shall contribute the land as additional capital and the shares of which shall eventually be donated to the
Parent Company; and (iii) the FBDC and the Parent Company agree to develop the land and construct the 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.
Based on such agreement, all outstanding shares of stocks of CWDC shall be donated by FBDC to the Parent Company on the following
dates:

Date of Donation %/Number of Shares to be Donated

January 7, 2005 14.32% or 5,247,419 shares
January 7, 2006 14.28% or 5,232,762 shares
January 7, 2007 14.28% or 5,232,762 shares
January 7, 2008 14.28% or 5,232,762 shares
January 7, 2009 14.28% or 5,232,762 shares
January 7, 2010 14.28% or 5,232,762 shares
January 7, 2011 14.28% or 5,232,762 shares

Following the Definitive Agreement, on January 7, 2006 and 2005, FBDC executed a Deed of 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 classified as Other assets (see Note 12).
In June 2007, the donation of all remaining CWDC shares was deferred pending negotiations 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
Global City for the relocation of the Parent Company’s headquarters, majority of its management offices and unified trading operations
in equities securities for the NCR to the Bonifacio Global City.
As at March 14, 2012, negotiations among the Parent Company, FBDC and ALI are still ongoing.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 89
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

16.
Equity
This account consists of:

2011 2010
Capital stock - P1.00 par value
Authorized - 97,800,000 shares
Issued - 61,208,733 shares in 2011 and 30,687,594 shares in 2010 P61,208,733 P30,687,594
Subscribed (Note 27) – 16,776
Additional paid-in capital 1,018,810,564 1,018,810,564
Treasury stock (200,012 shares and 200,007 shares in 2011 and 2010) (68,000,012) (68,000,007)
P1,012,019,285 P981,514,927
The following summarizes the information on the Company’s registration of securities under the Securities Regulation Code:

Date of SEC Approval Authorized Shares No. of Shares issued Issue/Offer Price
August 8, 2001 36,800,000 9,200,008 P31.16
January 28, 2004 – 6,077,505 120.50
September 12, 2008 61,000,000 – –

Shares Amount
2011 2010 2011 2010
Balance at beginning of year 30,704,370 30,655,012 P30,704,370 P30,655,012
Issuance of stock dividends during the year 30,504,363 – 30,504,363 –
Issuance of capital stock (Note 28) – 32,582 – 32,582
Subscribed (Note 28) – 16,776 – 16,776
Balance at end of year 61,208,733 30,704,370 P61,208,733 P30,704,370

On April 13, 2011, the Parent Company’s BOD approved the issuance of the 100% stock dividend declared by the Exchange to
stockholders of record as at May 30, 2011.

Parent Company’s Cash Dividends

Dividend
Date of Declaration Per Share Total Amount Record Date Payment Date
March 9, 2011 P12.00 P366,052,356 March 24, 2011 April 11, 2011
March 10, 2010 10.00 304,550,060 March 25, 2010 April 21, 2010
February 25, 2009 8.00 243,178,000 March 12, 2009 March 25, 2009

The balance of retained earnings includes the accumulated equity in net income of an associate and subsidiaries amounting to P150.2
million and P120.1 million as at December 31, 2011 and 2010, respectively. The amount is not available for dividend distribution until
such time that the Parent Company receives dividends from the respective associate.

90 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Ownership in the Exchange
The SRC provides that no industry or business group may beneficially own or control, directly or indirectly, more than 20% of the voting
rights of the Exchange. On August 13, 2007, the SEC imposed on the Exchange a penalty of P101,100 plus a daily fine of P100 for every
day of delay of compliance because the total broker ownership in the Exchange exceeds the allowable limit. 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
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 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.
The Group considers all the components of its total equity as capital.
The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure and shareholder returns,
taking into consideration the future capital requirements of the Group and capital efficiency, prevailing and projected profitability,
projected operating cash flows, projected capital expenditures and projected strategic investment opportunities. No changes were
made in the objectives, policies or processes as at December 31, 2011 and 2010.
The Group adopts a practice of providing shareholders with regular dividends.

17. Interest Income

This account consists of interest income from:

2011 2010 2009

AFS investments P25,571,279 P67,658,893 P75,435,240
Time deposits 33,251,480 10,244,544 10,723,504
Financial assets at FVPL 770,165 – –
Cash in banks 168,795 655,138 618,252
Car loan – 34,470 53,350
P59,761,719 P78,593,045 P86,830,346

18. Cost of Services

This account consists of:

2011 2010 2009

Compensation and other related staff costs (Note 20) P69,827,303 P64,345,064 P66,567,647
Depreciation (Note 10) 52,331,528 34,385,066 17,396,397
Repairs and maintenance 30,386,397 15,933,361 10,539,415
Communication 9,405,923 10,158,731 9,998,131
Amortization of computer software (Note 12) 5,108,493 5,085,741 5,290,538
Office supplies 648,655 693,661 902,413
Insurance 87,157 125,671 69,334
P167,795,456 P130,727,295 P110,763,875

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 91
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

19. General and Administrative Expenses

This account consists of:

2011 2010 2009

Compensation and other related staff costs (Note 20) P104,497,867 P114,341,836 P100,239,687
Professional fees 56,236,423 29,988,040 38,647,028
Occupancy costs (Note 21) 38,053,955 40,684,406 41,080,545
Depreciation (Note 10) 22,785,747 18,613,281 16,615,174
Taxes and licenses 7,820,350 5,897,397 5,397,000
Membership development 7,403,478 6,129,895 5,801,651
Travel and transportation 6,202,745 5,637,096 4,647,912
Market development 4,351,725 1,642,992 1,072,638
Office supplies 3,318,840 3,757,482 3,199,837
Recovery of impairment losses - net (Note 9) (2,206,760) (9,000) (4,701,263)
Repairs and maintenance 2,120,810 8,779,059 2,324,945
Communication 2,073,941 1,521,648 2,099,173
Donations and contributions 1,000,864 608,775 1,200,000
Foreign exchange loss 438,224 8,794,848 3,565,395
Loss on asset write-off – 13,692,355 –
Other expenses 18,699,333 16,387,713 14,608,429
P272,797,542 P276,467,823 P235,798,151

20. Compensation and Other Related Staff Costs

This account consists of:
2011 2010 2009
Salaries and wages (Note 25) P127,642,972 P110,810,887 P115,530,597
Retirement and separation cost (Notes 23 and 25) 16,587,999 10,824,369 12,014,599
Other employee benefits (Note 28) 30,014,698 57,051,644 39,262,138
P174,325,170 P178,686,900 P166,807,334
Other employee benefits include the share-based payment expense amounting to P6.4 million and P4.4 million in 2010 and 2009,
respectively (see Note 28). There were no expenses related to share-based payment in 2011.

21.
Occupancy Costs
This account consists of:

2011 2010 2009

Utilities P18,872,606 P21,911,980 P21,832,797
Condominium dues 10,518,690 9,821,697 9,947,577
Security and janitorial services 8,662,659 8,950,729 9,300,171
P38,053,955 P40,684,406 P41,080,545

92 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 22. Income Taxes
The provision for income tax consists of:

2011 2010 2009

RCIT P139,802,622 P125,002,938 P65,091,891
Final 11,722,983 14,976,414 15,854,903
Deferred 1,704,554 (66,811) (7,398,304)
P153,230,159 P139,912,541 P73,548,490

As at December 31, 2011 and 2010, the Group did not recognize the deferred tax assets on the following temporary differences since
management believes that these deductible temporary differences may not be realized in the future:

2011 2010
Allowance for impairment losses P23,367,418 P23,956,651
Retirement liability 7,212,481 6,033,056
Mark-to-market loss on financial assets at FVPL 4,924,795 –
P35,504,694 P29,989,707

The components of the net deferred tax assets are as follows:

2011 2010
Deferred tax assets:
Unamortized past service costs P6,746,594 P7,737,415
Accrued expenses 3,436,152 6,961,607
NOLCO 2,572,576 –
Allowance for impairment losses 781,184 2,470,850
Unrealized foreign exchange losses 47,645 2,440,690
13,584,151 19,610,562
Deferred tax liability:
Retirement asset (2,299,850) (6,621,707)
Net unrealized gains on available-for-sale investments (2,134,788) –
(4,434,638) (6,621,707)
P9,149,513 P12,988,855

The reconciliation between the statutory tax rates and the Group’s effective tax rates on income before income tax is as follows:

2011 2010 2009

Provision for income tax at
statutory income tax rate 30.00% 30.00% 30.00%
Adjustments for:
Interest income subjected to final tax (3.51%) (1.54%) (3.62%)
Equity in net income of an associate (1.61%) (1.43%) (0.38%)
Change in unrecognized deferred tax assets 0.51% 0.06% 0.15%
Nondeductible expenses (0.10%) (1.99%) –
Effective income tax rate 25.29% 25.10% 26.15%

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 93
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

23.
Retirement Plan
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.
The Parent Company’s retirement fund is being managed by a local bank.
The principal actuarial assumptions used in determining retirement liabilities as at January 1, 2011 and 2010 are shown below:

Parent Company SCCP

2011 2010 2011 2010
Discount rate 6.29% 8.25% 6.43% 7.88%
Expected rate of return on assets 6.00% 6.00% – –
Future salary increases 10.00% 10.00% 10.00% 10.00%

The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date applicable to the
period over which the obligation is to be settled.
The latest actuarial valuation studies of the retirement plan of the Parent Company and SCCP were made on December 31, 2011.
The retirement expense included under Compensation and other related staff costs in the consolidated statements of comprehensive
income are as follows:

2011 2010 2009

Current service cost P12,649,348 P9,212,561 P7,597,285
Interest cost 6,431,468 5,653,195 4,679,359
Expected return on plan assets (3,493,927) (2,705,002) (870,545)
Net actuarial loss recognized 1,001,110 553,615 608,500
Reversal of retirement benefits – (1,890,000) –
P16,587,999 P10,824,369 P12,014,599

The Parent Company’s retirement asset included in the consolidated balance sheets as at December 31, 2011 and 2010 are as follows:

2011 2010
Present value of the obligation P93,247,257 P69,204,250
Fair value of plan assets (57,388,509) (61,457,726)
35,858,748 7,746,524
Unrecognized actuarial losses (43,524,916) (29,818,881)
Retirement asset P7,666,168 P22,072,357

The net unfunded retirement obligation of SCCP recognized in the consolidated balance sheets as at December 31, 2011 and 2010
are as follows:

2011 2010
Present value of the obligation P10,829,810 P9,163,915
Unrecognized actuarial losses (3,617,329) (3,130,859)
Retirement liability P7,212,481 P6,033,056

94 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Changes in the present value of the defined benefit obligation are as follows:
Parent Company SCCP
2011 2010 2011 2010
Balance at beginning of year P69,204,250 P45,201,713 P9,163,915 P7,221,418
Actuarial losses 13,510,032 11,924,200 571,642 867,606
Current service cost 11,274,827 8,054,829 1,374,521 1,157,732
Actual benefits paid (6,451,203) (966,761) (1,002,385) (745,767)
Interest cost on benefit obligation 5,709,351 4,990,269 722,117 662,926
Balance at end of year P93,247,257 P69,204,250 P10,829,810 P9,163,915

The movements in the fair value of plan assets recognized by the Parent Company follow:

2011 2010
Balance at beginning of year P61,457,726 P38,741,708
Actual benefits paid (6,451,203) (966,761)
Expected return on plan assets 3,493,927 2,705,002
Actuarial loss (1,111,941) (1,139,466)
Contributions – 22,117,243
Balance at end of year P57,388,509 P61,457,726

The actual return on the plan assets of the Parent Company amounted to P2.4 million, P1.6 million and P2.0 million in 2011, 2010 and
2009, respectively.
The major categories of the Parent Company’s plan assets as a percentage of the fair value of total plan assets as at December 31,
2011 and 2010 are as follows:

2011 2010
Investment in government debt securities 65.22% 63.91%
Investment in private debt securities 33.72% 35.86%
Other assets 1.06% 0.23%

Amounts for the current and previous years are as follows:

Parent Company
2011 2010 2009 2008 2007
Present value of the obligation P93,247,257 P69,204,250 P45,201,713 P35,623,584 P20,849,048
Fair value of plan assets (57,388,509) (61,457,726) (38,741,708) (14,509,085) (16,009,167)
Deficit 35,858,748 7,746,524 6,460,005 21,114,499 4,839,881
Experience adjustment on plan liabilities (737,088) (2,570,263) (1,918,317) 19,205,036 (614,703)
Experience adjustment on plan assets (1,111,941) (1,139,466) 100,965 (813,601) (35,825)

 
SCCP
2011 2010 2009 2008 2007
Present value of the obligation P10,829,810 P9,163,915 P7,221,418 P4,097,548 P3,172,776
Deficit 10,829,810 9,163,915 7,221,418 4,097,548 3,172,776
Experience adjustment on plan liabilities (300,777) 170,224 157,451 229,566 733,041

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 95
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

24. Basic/Diluted Earnings Per Share

Basic earnings per share are calculated by dividing the net income for the year by the weighted average number of common shares
outstanding as at balance sheet date.
The basic and diluted earnings per share are the same as the dilutive effect of potential common shares from share-based payments
have no impact.

2011 2010 2009

Net income (a) P406,192,157 P417,497,291 P207,743,248
Weighted average number of outstanding common shares (b) 61,039,839 61,123,022* 61,014,615*
Basic/diluted earnings per share (a/b) P6.65 P6.83 P3.40
*Restated for the effect of the 100% stock dividends declared in 2011.

25. Related Party Transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are
subject to common control or common significant influence. Related parties may be individuals or corporate entities. Related parties
include trading participants that are stockholders of the Group. The Group, in its normal course of business, has transactions with
related parties.
The year-end balances in respect of brokers (stockholders of the Exchange) included in the balance sheets are as follows:
2011 2010
Receivables from trading participants - net of allowance for impairment losses of
P102,688 and P67,788 in 2011 and 2010, respectively P56,392,300 P44,940,682

The income in respect of the brokers included in the consolidated statements of comprehensive income follows:

2011 2010 2009

Trading-related fees:
Transaction P120,029,889 P97,486,442 P66,205,348
Block sales 22,229,243 23,251,314 33,210,297
Subscription 17,636,700 16,658,219 18,243,119
Service fees 254,034,164 215,604,239 177,575,563
Other revenues 843,643 3,622,976 5,206,946

Other revenues include recoveries from printing of data transaction report, penalty on trading floor, cancellation of matched orders,
and other fees.
Compensation of key management personnel (covering officer positions starting from Assistant Vice President and up) included under
“Compensation and other related staff costs” in the profit or loss as follows:

2011 2010 2009

Short-term employee benefits P45,741,163 P39,171,278 P54,210,714
Share-based payments (Note 28) – 6,463,639 2,082,815
Post-employment pension and medical benefits (Note 23) 817,129 701,982 887,173
P46,558,291 P46,336,899 P57,180,702
Short-term employee benefits include salaries, paid annual leave, vacation and sick leave, profit sharing and bonuses,
and non-monetary benefits.

96 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
26. Operating Segment
The Group has one reportable business segment which is the equity securities market. The equity 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.
The management monitors the operating results of its business segment for the purpose of making decisions about resource
allocation and performance assessment. The segment performance is evaluated based on operating profit or loss and is measured
consistently with the income before income tax in the consolidated financial statements.

27. Contingencies
In 2007, the Parent Company’s BOD appropriated a portion of its retained earnings amounting to P3.0 million to cover potential
liability cases filed against the Parent Company, its directors and/or officers. As at March 14, 2012, the said cases are still pending
before the courts and quasi-judicial agencies. The amount of the appropriation which is based on available relevant information
as at December 31, 2010, will be reassessed periodically to reflect material developments made known to the Parent Company.
The SCCP, as the central counterparty to stock exchange transactions, has contingent liabilities pertaining to outstanding trades as at
December 31, 2011 and 2010. Details of stock exchange transactions outstanding as at balance sheet dates are as follows:

2011 2010
Value of shares not yet delivered (net selling) P6,439,651,225 P8,935,410,286
Amount of purchases unpaid (due clearing) 2,310,668,164 2,941,139,487
P8,750,319,389 P11,876,549,773

The settlement of trades of Manila Electric Company (MER) shares executed on December 12, 15 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 balances due to a dispute over 42,002,750 MER shares in the name of Land Bank of the 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 delivery of MER shares which did not form part of the disputed MER shares.
As at December 31, 2011 and 2010, all transactions outstanding as at balance sheet date were settled. Accordingly, no failed trades
occurred from these transactions.

28. Share-based Payments

On March 26, 2008, the BOD of the Exchange approved the ESPP for its employees and SCCP’s employees, with the following terms
and condition:
a. number of shares allotted for the offering is 150,000 shares or about 1% of the outstanding capital stock of the Exchange.
Each offering consists of 50,000 shares;
b. all regular employees in good standing of the Exchange and SCCP with at least 1 year of continuous service as at the offer
date is eligible;
c. offer date is annual for a period of 3 years exercisable from July to December of each year;
d. offer price is fixed based on Volume Weighted Average Price of PSE shares of the month preceding the offer date;
e. discount of 10% from the offer price; and
f. cash payment is required during the exercise period.
The rollforward analysis of number of shares on ESPP is as follows:

2011 2010
Outstanding at beginning of year 654 12
Granted during the year – 50,000
Exercised during the year – (49,358)
Expired during the year (654) –
Outstanding at end of year – 654

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 97
 The Philippine Stock Exchange, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

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. Subscription period was from July to December 2010 with an exercise
price of P237.46 per share while the average fair value at grant date was P326.62, which is based on quoted market price.
Out of the 49,358 shares of the Exchange that were availed of and fully paid by the participants under the ESPP, 44,058 shares
and 5,300 shares were availed by the Exchange’s and SCCP’s employees, respectively.
Total additional paid-in capital arising from share-based payments amounted to nil, P18.2 million and P18.4 million in 2011, 2010 and
2009, respectively. Total expense arising from share-based payments amounted to nil, P6.4 million and P4.3 million in 2011, 2010 and
2009, respectively (see Note 20).

29. Clearing and Trade Guaranty Fund

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.
Starting in 2010, the CTGF was presented off balance sheet and is not included within the noncurrent assets and noncurrent liabilities in
the consolidated balance sheets. The revised presentation is to better reflect the trading participants’ contribution as trust monies and
does not result in a change in net assets of the Group.
The CTGF consists of:
2011 2010
Principal contributions from:
Trading participants
Balance at beginning of year P235,686,735 P203,891,434
Contributions 53,546,380 31,795,301
Balance at end of year 289,233,115 235,686,735
The Exchange 80,000,000 80,000,000
369,233,115 315,686,735
Accumulated income:
Balance at beginning of year 189,675,565 172,323,947
Interest income - net of management fee of
P0.6 million and P0.5 million in 2011 and 2010, respectively 18,796,588 17,351,618
Balance at end of year 208,472,153 189,675,565
Net unrealized gains on AFS investments 7,279,677 6,961,287
215,751,830 196,636,852
P584,984,945 P512,323,587

Contributions
In order for the SCCP to effectively implement its Fails Management function, the CTGF must be adequate to cover any unsettled trade
by any member on any settlement day. Fails Management aims to settle a failed trade due to nonpayment of cash and/or nondelivery of
securities by clearing members. In this regard, the Group continuously builds up the CTGF through the monthly contributions collected
from the clearing participants and collection of initial contributions from new and returning trading participants.
On January 28, 2003, the SCCP’s BOD approved the amendment of its rules on CTGF providing for the non-recourse of all CTGF
contributions to members. In July 2007, the SCCP’s BOD 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 the SEC.

98 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
 Assets of CTGF
The assets of the CTGF consist of:

2011 2010
Cash in bank P22,169,787 P29,738,829
Accounts receivable 3,528,098 2,751,684
Accrued interest receivable 3,537,774 2,453,323
AFS investments - debt securities:
Principal amount 541,333,000 471,734,000
Net unamortized premium (discount) 7,722,180 (802,700)
Net unrealized gains on AFS investments 7,279,677 6,961,287
585,570,516 512,836,423
Less accrued management fees 585,571 512,836
P584,984,945 P512,323,587
The CTGF invested on the following:
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 liquidity requirements of the clearing
fund.
As at December 31, 2011 and 2010, AFS investments with principal amounts of P378.7 million and P173.9 million, respectively, will
mature within one year from balance sheet date.
Net unrealized gains (losses) from CTGF investments held as AFS follows:
2011 2010
Balance at beginning of year P6,961,287 (P819,567)
Change in fair value 318,390 7,780,854
Balance at end of year P7,279,677 P6,961,287

For the management and administration of CTGF, the SCCP is entitled to a management fee computed at 0.1% of CTGF fund level as at
the close of year. Management fee amounting to P0.6 million and P0.5 million in 2011 and 2010, 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.

30. Reclassification of Accounts

The comparative information has been reclassified from the consolidated financial statements previously presented to conform
to the presentation of the statement of comprehensive income for the periods ended December 31, 2011, 2010 and 2009.

31. Events after the Reporting Date

On March 14, 2012, the BOD approved the declaration of regular cash dividends of P2.95 per share and special cash dividends of P4.05
per share out of the unappropriated retained earnings of the Parent Company as at December 31, 2011 in favor of stockholders of
record as at March 29, 2012. The cash dividends will be paid on April 18, 2012.

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 99
 Listed Issues as of Yearend 2011

Issue Code Par Value (Php) Issue Code Par Value (Php)

Financials Sector
Ginebra San Miguel, Inc. GSMI 1.00
Banks Jollibee Foods Corporation JFC 1.00
Asiatrust Development Bank, Inc. ASIA 10.00 Liberty Flour Mills, Inc. LFM 10.00
BDO Unibank, Inc. BDO 10.00 Pancake House, Inc. PCKH 1.00
Bank of the Philippine Islands BPI 10.00 San Miguel Pure Foods Company, Inc. PF 10.00
China Banking Corporation CHIB 100.00 Pepsi-Cola Products Philippines, Inc. PIP 0.15
Chinatrust (Philippines) Commercial Bank Corporation CHTR 10.00 Roxas and Company, Inc. RCI 1.00
Citystate Savings Bank, Inc. CSB 10.00 RFM Corporation RFM 1.00
Export and Industry Bank, Inc. “A” EIBA 0.25 Roxas Holdings, Inc. ROX 1.00
Export and Industry Bank, Inc. “B” EIBB 0.25 Swift Foods, Inc. SFI 1.00
Metropolitan Bank & Trust Company MBT 20.00 San Miguel Brewery, Inc. SMB 1.00
Philippine Bank of Communications PBC 100.00 San Miguel Corporation SMC 5.00
Philippine National Bank PNB 40.00 Tanduay Holdings, Inc. TDY 1.00
Philippine Savings Bank PSB 10.00 Philippine Tobacco Flue-Curing and Redrying Corporation TFC 1.00
Philippine Trust Company PTC 10.00 Universal Robina Corporation URC 1.00
Rizal Commercial Banking Corporation RCB 10.00 Vitarich Corporation VITA 1.00
Security Bank Corporation SECB 10.00 Victorias Milling Company, Inc. VMC 10.00
Union Bank of the Philippines, Inc. UBP 10.00 Construction, Infrastructure & Allied Services
Other Financial Institutions AGP Industrial Corporation AGP 1.00
ATR KimEng Financial Corporation ATRK 1.00 Concrete Aggregates Corporation “A” CA 10.00
Bankard, Inc. BKD 1.00 Concrete Aggregates Corporation “B” CAB 10.00
BDO Leasing and Finance, Inc. BLFI 1.00 Southeast Asia Cement Holdings, Inc. CMT 0.35
CitisecOnline.com, Inc. COL 1.00 EEI Corporation EEI 1.00
First Abacus Financial Holdings Corporation FAF 1.00 Federal Resources Investment Group, Inc. FED 1.00
Filipino Fund, Inc. FFI 1.00 Holcim Philippines, Inc. HLCM 1.00
First Metro Investment Corporation FMIC 10.00 Mariwasa Siam Holdings, Inc. MMI 1.00
I-Remit, Inc. I 1.00 Megawide Construction Corporation MWIDE 1.00
Medco Holdings, Inc. MED 1.00 Phinma Corporation PHN 10.00
Manulife Financial Corporation MFC - Philippine National Construction Corporation PNC 10.00
National Reinsurance Corporation of the Philippines NRCP 1.00 Republic Cement Corporation RCM 1.00
The Philippine Stock Exchange, Inc. PSE 1.00 Supercity Realty Development Corporation SRDC 1.00
Sun Life Financial Inc. SLF - TKC Steel Corporation T 1.00
Vantage Equities, Inc. V 1.00 Vulcan Industrial & Mining Corporation VUL 1.00
Chemicals
Industrial Sector Chemical Industries of the Philippines, Inc. CIP 10.00
Chemrez Technologies, Inc. COAT 1.00
Electricity, Energy, Power & Water Euro-Med Laboratories Philippines, Inc. EURO 1.00
Alsons Consolidated Resources, Inc. ACR 1.00 LMG Chemicals Corporation LMG 1.00
Aboitiz Power Corporation AP 1.00 Metro Alliance Holdings & Equities Corporation “A” MAH 1.00
Energy Development Corporation EDC 1.00 Metro Alliance Holdings & Equities Corporation “B” MAHB 1.00
First Gen Corporation FGEN 1.00 Manchester International Holdings Unlimited Corporation “A” MIH 1.00
First Philippine Holdings Corporation FPH 10.00 Manchester International Holdings Unlimited Corporation “B” MIHB 1.00
Calapan Ventures, Inc. H2O 1.00 Mabuhay Vinyl Corporation MVC 1.00
Manila Electric Company MER 10.00 Pryce Corporation PPC 1.00
Manila Water Company, Inc. MWC 1.00 Diversified Industrials
Petron Corporation PCOR 1.00 Active Alliance, Inc. AAI 1.00
Phoenix Petroleum Philippines, Inc. PNX 1.00 Alphaland Corporation ALPHA 1.00
SPC Power Corporation SPC 1.00 Cirtek Holdings Philippines Corporation CHIPS 1.00
Trans-Asia Oil and Energy Development Corporation TA 1.00 Filsyn Corporation “A” FYN 5.00
Vivant Corporation VVT 1.00 Filsyn Corporation “B” FYNB 5.00
Food, Beverage & Tobacco Greenergy Holdings Incorporated GREEN 0.01
Alaska Milk Corporation AMC 1.00 Integrated Micro-Electronics, Inc. IMI 1.00
AgriNurture, Inc. ANI 1.00 Ionics, Inc. ION 1.00
Bogo-Medellin Milling Company BMM 10.00 Picop Resources, Inc. PCP 1.00
Central Azucarera de Tarlac, Inc. CAT 10.00 Panasonic Manufacturing Philippines Corporation PMPC 1.00
Cosmos Bottling Corporation CBC 1.00 Splash Corporation SPH 1.00
Alliance Select Foods International, Inc. FOOD 1.00 Steniel Manufacturing Corporation STN 1.00

100 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Issue Code Par Value (Php) Issue Code Par Value (Php)

Holding Firms Sector Highlands Prime, Inc. HP 1.00

Asia Amalgamated Holdings Corporation AAA 1.00 Interport Resources Corporation “A” IRC 1.00
Abacus Consolidated Resources and Holdings, Inc. ABA 1.00 Interport Resources Corporation “B” IRCB 1.00
Ayala Corporation AC 50.00 Keppel Philippines Properties, Inc. KEP 1.00
Aboitiz Equity Ventures, Inc. AEV 1.00 City & Land Developers, Inc. LAND 1.00
Alliance Global Group, Inc. AGI 1.00 Marsteel Consolidated, Inc. “A” MC 0.01
A. Soriano Corporation ANS 1.00 Marsteel Consolidated, Inc. “B” MCB 0.01
Alcorn Gold Resources Corporation APM 0.01 Megaworld Corporation MEG 1.00
Anglo Philippine Holdings Corporation APO 1.00 MRC Allied, Inc. MRC 0.20
ATN Holdings, Inc. “A” ATN 1.00 Philippine Estates Corporation PHES 1.00
ATN Holdings, Inc. “B” ATNB 1.00 Primetown Property Group, Inc. PMT 1.00
BHI Holdings, Inc. BH 100.00 Polar Property Holdings Corporation PO 1.00
DMCI Holdings, Inc. DMC 1.00 Primex Corporation PRMX 1.00
Fil-Estate Corporation FC 1.00 Robinsons Land Corporation RLC 1.00
Filinvest Development Corporation FDC 1.00 Philippine Realty and Holdings Corporation RLT 1.00
F & J Prince Holdings Corporation “A” FJP 1.00 Shang Properties, Inc. SHNG 1.00
F & J Prince Holdings Corporation “B” FJPB 1.00 Sta. Lucia Land, Inc. SLI 1.00
Forum Pacific, Inc. FPI 1.00 SM Development Corporation SMDC 1.00
House of Investments, Inc. HI 1.50 San Miguel Properties, Inc. SMP 10.00
JG Summit Holdings, Inc. JGS 1.00 SM Prime Holdings, Inc. SMPH 1.00
Jolliville Holdings Corporation JOH 1.00 Suntrust Home Developers, Inc. SUN 1.00
Keppel Philippines Holdings, Inc. “A” KPH 1.00 Uniwide Holdings, Inc. UW 1.00
Keppel Philippines Holdings, Inc. “B” KPHB 1.00 Vista Land & Lifescapes, Inc. VLL 1.00
Lodestar Investment Holdings Corporation LIHC 0.10
Lopez Holdings Corporation LPZ 1.00 Services Sector
Marcventures Holdings, Inc. MARC 1.00
Mabuhay Holdings Corporation MHC 1.00 Media
Minerales Industrias Corporation MIC 1.00 ABS-CBN Corporation ABS 1.00
MJC Investments Corporation MJIC 1.00 GMA Network, Inc. GMA7 1.00
Metro Pacific Investments Corporation MPI 1.00 Manila Bulletin Publishing Corporation MB 1.00
Pacifica, Inc. PA 0.01 Manila Broadcasting Company MBC 1.00
Prime Orion Philippines, Inc. POPI 1.00 Telecommunications
Prime Media Holdings, Inc. PRIM 1.00 Digital Telecommunications Phils., Inc. DGTL 1.00
Republic Glass Holdings Corporation REG 1.00 Globe Telecom, Inc. GLO 50.00
Solid Group, Inc. SGI 1.00 Liberty Telecoms Holdings, Inc. LIB 1.00
Synergy Grid & Development Phils., Inc. SGP 1.00 PLDT Communications and Energy Ventures, Inc. PCEV 1.00
Sinophil Corporation SINO 1.00 Philippine Telegraph and Telephone Corporation PTT 1.00
SM Investments Corporation SM 10.00 Philippine Long Distance Telephone Company TEL 5.00
South China Resources, Inc. SOC 1.00 Information Technology
Seafront Resources Corporation SPM 1.00 Boulevard Holdings, Inc. BHI 0.10
Unioil Resources & Holdings Company, Inc. UNI 1.00 IP Converge Data Center, Inc. CLOUD 1.00
Wellex Industries, Inc. WIN 1.00 DFNN, Inc. DFNN 1.00
Zeus Holdings, Inc. ZHI 1.00 Imperial Resources, Inc. “A” IMP 5.00
Imperial Resources, Inc. “B” IMPB 5.00
Property Sector IP E-Game Ventures, Inc. EG 1.00
IPVG Corporation IP 1.00
Arthaland Corporation ALCO 0.18 Island Information & Technology, Inc. IS 0.01
Anchor Land Holdings, Inc. ALHI 1.00 ISM Communications Corporation ISM 1.00
Ayala Land, Inc. ALI 1.00 Nextstage, Inc. NXT 1.00
Araneta Properties, Inc. ARA 1.00 Transpacific Broadband Group International, Inc. TBGI 1.00
Belle Corporation BEL 1.00 Touch Solutions, Inc. TSI 1.00
A Brown Company, Inc. BRN 1.00 PhilWeb Corporation WEB 1.00
Cityland Development Corporation CDC 1.00 Transportation Services
Crown Equities, Inc. CEI 0.10 Asian Terminals, Inc. ATI 1.00
Cebu Holdings, Inc. CHI 1.00 ATS Consolidated (ATSC), Inc. ATS 1.00
Century Properties Group Inc. CPG 0.53 Cebu Air, Inc. CEB 1.00
Cebu Property Venture & Development “A” CPV 1.00 International Container Terminal Services, Inc. ICT 1.00
Cebu Property Venture & Development “B” CPVB 1.00 Lorenzo Shipping Corporation LSC 1.00
Cyber Bay Corporation CYBR 1.00 MacroAsia Corporation MAC 1.00
Empire East Land Holdings, Inc. ELI 1.00 PAL Holdings, Inc. PAL 1.00
Eton Properties Philippines, Inc. ETON 1.00 Metro Pacific Tollways Corporation TOL 1.00
Ever-Gotesco Resources & Holdings, Inc. EVER 1.00 Hotel & Leisure
Filinvest Land, Inc. FLI 1.00 Acesite (Philippines) Hotel Corporation ACE 1.00
Global-Estate Resorts, Inc. GERI 1.00 Grand Plaza Hotel Corporation GPH 10.00
Gotesco Land, Inc. “A” GO 1.00 Leisure & Resorts World Corporation LR 1.00
Gotesco Land, Inc. “B” GOB 1.00 Manila Jockey Club, Inc. MJC 1.00

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 101
 Issue Code Par Value (Php) Issue Code Par Value (Php)

Premiere Entertainment Philippines, Inc. PEP 1.00 Benguet Corporation - 8% Cumulative Convertible Pref. A BCP 3.44
Philippine Racing Club, Inc. PRC 1.00 DMCI Holdings, Inc. - Cumulative Convertible Preferred DMCP 1.00
Waterfront Philippines, Inc. WPI 1.00 First Gen Corporation - Preferred FGENF 1.00
Education First Philippine Holdings Corporation - Preferred FPHP 100.00
Centro Escolar University CEU 1.00 Globe Telecom, Inc. - Preferred A GLOPA 5.00
Far Eastern University, Inc. FEU 100.00 Petron Corporation - Preferred PPREF 1.00
iPeople, Inc. IPO 1.00 Philippine Bank of Communications - Preferred PBCP 25.00
Diversified Services San Miguel Pure Foods Company, Inc. - Preferred PFP 10.00
APC Group, Inc. APC 1.00 Swift Foods, Inc. Convertible Preferred SFIP 1.00
Berjaya Philippines, Inc. BCOR 1.00 San Miguel Corporation - Preferred Series “1” SMCP1 5.00
EasyCall Communications Philippines, Inc. ECP 1.00 PLDT 10% Cumulative Convertible Pref. Series A TELA 10.00
Information Capital Technology Ventures, Inc. ICTV 1.00 PLDT 10% Cumulative Convertible Pref. Series B TELB 10.00
JTH Davies Holdings, Inc. JTH 0.50 PLDT 10% Cumulative Convertible Pref. Series C TELC 10.00
Pacific Online Systems Corporation LOTO 1.00 PLDT 10% Cumulative Convertible Pref. Series D TELD 10.00
Paxys, Inc. PAX 1.00 PLDT 10% Cumulative Convertible Pref. Series E TELE 10.00
Puregold Price Club, Inc. PGOLD 1.00 PLDT 10% Cumulative Convertible Pref. Series F TELF 10.00
Philcomsat Holdings Corporation PHC 1.00 PLDT 10% Cumulative Convertible Pref. Series G TELG 10.00
Globalport 900, Inc. PORT 1.00 PLDT 10% Cumulative Convertible Pref. Series H TELH 10.00
Philippine Seven Corporation SEVN 1.00 PLDT 10% Cumulative Convertible Pref. Series I TELI 10.00
PLDT 10% Cumulative Convertible Pref. Series J TELJ 10.00
Mining & Oil Sector PLDT 10% Cumulative Convertible Pref. Series K TELK 10.00
PLDT 10% Cumulative Convertible Pref. Series L TELL 10.00
Mining PLDT 10% Cumulative Convertible Pref. Series M TELM 10.00
Atok-Big Wedge Company, Inc. AB 1.00 PLDT 10% Cumulative Convertible Pref. Series N TELN 10.00
Apex Mining Company, Inc. “A” APX 1.00 PLDT 10% Cumulative Convertible Pref. Series O TELO 10.00
Apex Mining Company, Inc. “B” APXB 1.00 PLDT 10% Cumulative Convertible Pref. Series P TELP 10.00
Abra Mining and Industrial Corporation AR 0.01 PLDT 10% Cumulative Convertible Pref. Series Q TELQ 10.00
Atlas Consolidated Mining & Development Corporation AT 10.00 PLDT 10% Cumulative Convertible Pref. Series R TELR 10.00
Benguet Corporation “A” BC 3.00 PLDT 10% Cumulative Convertible Pref. Series S TELS 10.00
Benguet Corporation “B” BCB 3.00 PLDT 10% Cumulative Convertible Pref. Series T TELT 10.00
Century Peak Metals Holdings Corporation CPM 1.00 PLDT 10% Cumulative Convertible Pref. Series U TELU 10.00
Dizon Copper-Silver Mines, Inc. DIZ 1.00 PLDT 10% Cumulative Convertible Pref. Series V TELV 10.00
GEOGRACE Resources Philippines, Inc. GEO 1.00 PLDT 10% Cumulative Convertible Pref. Series W TELW 10.00
Lepanto Consolidated Mining Company “A” LC 0.10 PLDT 10% Cumulative Convertible Pref. Series X TELX 10.00
Lepanto Consolidated Mining Company “B” LCB 0.10 PLDT 10% Cumulative Convertible Pref. Series Y TELY 10.00
Manila Mining Corporation “A” MA 0.01 PLDT 10% Cumulative Convertible Pref. Series Z TELZ 10.00
Manila Mining Corporation “B” MAB 0.01 PLDT 10% Cumulative Convertible Pref. Series AA TLAA 10.00
NiHAO Mineral Resources International, Inc. NI 1.00 PLDT 10% Cumulative Convertible Pref. Series BB TLBB 10.00
Nickel Asia Corporation NIKL 0.50 PLDT 10% Cumulative Convertible Pref. Series CC TLCC 10.00
Omico Corporation OM 1.00 PLDT 10% Cumulative Convertible Pref. Series DD TLDD 10.00
Oriental Peninsula Resources Group, Inc. ORE 1.00 PLDT 10% Cumulative Convertible Pref. Series EE TLEE 10.00
Philex Mining Corporation PX 1.00 PLDT 10% Cumulative Convertible Pref. Series FF TLFF 10.00
Semirara Mining Corporation SCC 1.00 PLDT 10% Cumulative Convertible Pref. Series GG TLGG 10.00
United Paragon Mining Corporation UPM 0.01 PLDT 10% Cumulative Convertible Pref. Series HH TLHH 10.00
Oil
Basic Energy Corporation BSC 0.25 Warrants, Philippine Deposit Receipts, Etc.
Oriental Petroleum and Minerals Corporation “A” OPM 0.01
Oriental Petroleum and Minerals Corporation “B” OPMB 0.01 ABS-CBN Holdings Corporation - Philippine Deposit Receipts ABSP -
The Philodrill Corporation OV 0.01 GMA Holdings, Inc. - Philippine Deposit Receipts GMAP -
PNOC Exploration Corporation “A” PEC 1.00 Interport Resources - Warrants “A” IRWA -
PNOC Exploration Corporation “B” PECB 1.00 Interport Resources - Warrants “B” IRWB -
PetroEnergy Resources Corporation PERC 1.00 Megaworld Corporation - Warrants1 MEGW1 -
Philex Petroleum Corporation PXP 1.00 Megaworld Corporation - Warrants2 MEGW2 -
Omico Corporation - Warrants OMW2 -
Preferred
Small & Medium Enterprises
Allied Banking Corporation - 15% Cum. Convertible Pref. A ABC 1,000.00
Ayala Corporation Preferred Class “A” Shares ACPA 100.00 Makati Finance Corporation MFIN 1.00
Ayala Corporation Preferred Class “B” Shares ACPR 100.00 iRipple, Inc. RPL 1.00
ATS Consolidated (ATSC), Inc. - Preferred ATSP 1.00

102 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
List of Active Trading Participants

A & A SECURITIES, INC. 101 ALPHA SECURITIES CORPORATION 106 ASTRA SECURITIES CORP. 119
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
SHIRLEY Y. BANGAYAN JONATHAN JOSEPH S. KUI BENITO B. H. ANG
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: TEKTITE Trading Floor: AYALA
Status: ACTIVE Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information:
Contact Information:
Unit 3003, One Corporate Centre Julia Vargas Street 12/F, Tower One & Exchange Plaza
1906 Ayala Avenue Condominium, 6776 Ayala Avenue, Makati City
cor. Meralco Ave. Ortigas Center, Pasig City Ayala Avenue cor. Paseo de Roxas, Makati City
Office: 891-1008 to 10 Office: 848-6421 to 27
Exchange: 891-1008 to 10 Office: 654-6806 & 07; 477-9959;
Exchange: 891-9126 to 27
Telefax: 891-1010 477-9279; 470-8356 Fax: 848-6428
Email: aasec@pldtdsl.net Exchange: 638-6692 to 93; Email: astrasecurities@gmail.com
638-6689
A. T. DE CASTRO SECURITIES CORPORATION 104 Fax: 654-6799 ATC SECURITIES, INC. 120
(Corporate Trading Participant) Email: alphasec@pldtdsl.com.ph (Corporate Trading Participant)
ALEJANDRO T. DE CASTRO ANSELMO TRINIDAD JR.
(Nominee Trading Participant) ANGPING & ASSOCIATES SECURITIES, INC. 110 (Nominee Trading Participant)
Nationality: FILIPINO (Corporate Trading Participant) Nationality: FILIPINO
Trading Floor: AYALA WILMA C. CRISOSTOMO Trading Floor: AYALA
Status: ACTIVE (Nominee Trading Participant) Status: ACTIVE
Contact Information: Nationality: FILIPINO Contact Information:
Trading Floor: AYALA Unit 6F, 6th Floor 8101 Pearl Plaza, Pearl Drive Ortigas Center, Pasig City
7/F, Tower One & Exchange Plaza
Status: ACTIVE Office: 683-0204; 687-1768
Ayala Avenue cor. Paseo de Roxas, Makati City
Contact Information: 687-2866; 683-0201
Office: 848-7160 to 63 Exchange: 891-9337 to 38
Exchange: 848-7160 to 63 Suite 2003-2004, The Peak 107 L. P. Leviste Street,
Salcedo Village, Makati City Fax: 687-1760
Telefax: 848-7163 Email: atcsettle@pacific.net.ph
Email: atcastro@info.com.ph Office: 848-2915
Office of the President 810-0930
Office of the EVP 848-2564
AAA SOUTHEAST EQUITIES, INC. 237 AURORA SECURITIES, INC. 167
Exchange: 891-9115
(Corporate Trading Participant) EMMANUEL EDWARD C. CO
Fax: 848-2572 (Natural Person Trading Participant)
D. ALFRED A. CABANGON
Email: wcris@angping.com.ph Nationality: FILIPINO
(Nominee Trading Participant)
sgogola@angping.com.ph Trading Floor: TEKTITE
Nationality: FILIPINO
Trading Floor: AYALA Status: ACTIVE
Status: ACTIVE Contact Information:
ANSALDO, GODINEZ & COMPANY, INC. 111 24/F, West Tower – PSE Centre, Exchange Road, Ortigas Center,
Contact Information: (Corporate Trading Participant) Pasig City
G/F Fortune Life Building 162 Legaspi Street, Legaspi Village, Makati City MARIANO U. GODINEZ Office: 634-8321 to 24
Office: 816-2918 (Nominee Trading Participant) Exchange: 634-8321 to 24
892-9841 to 49 loc. 103 Nationality: FILIPINO Telefax: 634-8321
Exchange: 891-9570 to 72 Trading Floor: TEKTITE Email: ausecinc@pldtdsl.net
Fax: 812-1831 Status: ACTIVE
Contact Information: B. H. CHUA SECURITIES CORPORATION 124
AB CAPITAL SECURITIES, INC. 112 340 Nueva Street, Binondo, Manila MICHAEL LI CHUA
(Corporate Trading Participant) Office: 242-5124 to 25; (Natural Person Trading Participant)
LAMBERTO M. SANTOS, JR. 242-5127 to 31 Nationality: FILIPINO
(Nominee Trading Participant) Exchange: 634-5160 & 63; Trading Floor: AYALA
Nationality: FILIPINO 634-6232 to 34; 634-6521 to 22 Status: ACTIVE
Trading Floor: AYALA Fax: 242-5121 Contact Information:
Status: ACTIVE 872 G. Araneta Avenue, Quezon City
Contact Information: Office: 742-5850; 742-6032;
APEX PHILS. EQUITIES CORPORATION 255 412-3444
Unit 1401-1403, 14/F Tower One and Exchange Plaza, Ayala Avenue cor. (Corporate Trading Participant) Exchange: 891-9771 to 73
Paseo de Roxas, Makati City JOSE ROBERTO DELGADO Telefax: 412-3448
Office: 898-7555 (Nominee Trading Participant)
Exchange: 891-9135 Nationality: FILIPINO BA SECURITIES, INC. 109
Fax: 898-7596 Trading Floor: AYALA (Corporate Trading Participant)
Email: abcsi@abcapital.com.ph Status: ACTIVE BRYAN JAN L. ANG
Website: www.abcapitalonline.com Contact Information: (Acting Nominee Trading Participant)
2/F, Mary Bachrach Building Port Area, Manila Nationality: FILIPINO
ABACUS SECURITIES CORPORATION 102 Office: 527-8888 loc. 219; Trading Floor: AYALA
(Corporate Trading Participant) 527-5291 Status: ACTIVE
PAULINO S. SOO Exchange: 891-8586 Contact Information:
(Nominee Trading Participant) Fax: 527-8919; 527-8912 Room 401-403, CLMC Building 259-267 EDSA, Mandaluyong City
Nationality: FILIPINO Office: 727-5374; 722-0132
Trading Floor: TEKTITE ARMSTRONG SECURITIES, INC. 388 Exchange: 891-9672 to 75
Status: ACTIVE (Corporate Trading Participant) Telefax: 722-0132
Contact Information: TONY O. KING Email: baseccom@info.com.ph
29/F, East Tower – PSE Centre Exchange Road, Ortigas Center, Pasig City (Nominee Trading Participant)
Nationality: FILIPINO BDO SECURITIES CORPORATION 279
Office: 667-8900
(Corporate Trading Participant)
Exchange: 634-6993; 634-6842 Trading Floor: AYALA
EDUARDO V. FRANCISCO
Fax: Operations 634-5206 Status: ACTIVE (Nominee Trading Participant)
Int’l. Sales 634-2107 Contact Information: Nationality: FILIPINO
Retail/Customer Svc. 634-2109 20th Floor, BDO South Tower, Trading Floor: AYALA
Accounting 634-2105 Makati Ave. cor. H. V. dela Costa St., Makati City Status: ACTIVE
Email: customerservice@abacus-sec.com Office: 878-4043 Contact Information:
Website: www.abacus-sec.com Exchange: 891-8534; 891-8542; 891-8563 20th Floor, BDO South Tower, Makati Ave. cor. H. V. dela Costa St., Makati City
Fax: 840-7175 Office: 878-4070
ACCORD CAPITAL EQUITIES CORPORATION 103 840-7000 loc. 6391; 6385; 6382
(Corporate Trading Participant) ASIA PACIFIC CAPITAL EQUITIES & SECURITIES CORP. 116 840-7000 loc. 6386; 6392; 6068
PAUL L. WEE (Corporate Trading Participant) Exchange: 848-5836; 848-7015
(Nominee Trading Participant) DAVID O. CHUA Fax: 840-7175
Nationality: FILIPINO (Nominee Trading Participant)
Trading Floor: TEKTITE Nationality: FILIPINO BELSON SECURITIES, INC. 122
Trading Floor: AYALA (Corporate Trading Participant)
Status: ACTIVE
Status: ACTIVE EMMANUEL G. LIM
Contact Information: (Nominee Trading Participant)
G/F, Unit EC-05B, Contact Information:
24/F, Galleria Corporate Center EDSA cor. Ortigas Avenue, Quezon City Nationality: FILIPINO
PSE Centre-East Tower, Exchange Rd., Ortigas Center, Pasig City Trading Floor: AYALA
Office: (Trunkline) 588-1919 Office: 634-5621
Exchange: 891-9550 to 59; 891-8571 Status: ACTIVE
24/7 Customer Care: 588-1900 Contact Information:
Exchange: 687-0911; 687-0936 Fax: 634-5813
4/F, Belson House 271 EDSA, Mandaluyong City
Email: apcap@compass.com.ph Office: 724-7586 to 90; 724-7580
Fax: 687-3738
Email: info@accordcapital.ph Exchange: 891-9860 to 68
Website: www.accordcapital.ph
ASIASEC EQUITIES, INC. 118 Fax: 721-9238
(Corporate Trading Participant)
GIDEON G. SISON BENJAMIN CO CA & COMPANY, INC. 123
ALAKOR SECURITIES CORPORATION 232
(Nominee Trading Participant) (Corporate Trading Participant)
(Corporate Trading Participant)
Nationality: FILIPINO BENJAMIN CO CA
GERARD ANTON S. RAMOS
Trading Floor: AYALA (Nominee Trading Participant)
(Nominee Trading Participant)
Status: ACTIVE Nationality: FILIPINO
Nationality: FILIPINO
Contact Information: Trading Floor: TEKTITE
Trading Floor: TEKTITE 8/F, Chatham House 116 Valero cor. Status: ACTIVE
Status: ACTIVE Herrera Streets, Salcedo Village, Makati City Contact Information:
Contact Information: Office: 845-3421 to 26 Rm. 301-305, Downtown Center Bldg.
5/F, Quad Alpha Centrum 125 Pioneer Street, Mandaluyong City Exchange: 891-9370 to 75 516 Q. Paredes St., Binondo, Manila
Office: 631-8173;637-4496 Fax: 845-3418 Office: 241-1261; 241-1345
Exchange: 634-6928 to 29 Email: aei@bloomberg.net Exchange: 634-5186 to 90
Fax: 631-5166 Fax: 241-1261

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 103
 BERNAD SECURITIES, INC. 272 CREDIT SUISSE SECURITIES (PHILS.), INC. 311 DW CAPITAL, INC. 328
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
ELPHEGE WONG Joselito C. Vicencio, Jr. DERWIN NGO WONG
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: Hongkong Nationality: FILIPINO
Trading Floor: TEKTITE Trading Floor: Tektite Trading Floor: TEKTITE
Status: ACTIVE Status: ACTIVE
Status: Active
Contact Information: Contact Information:
19/F The Enterprise Center, Tower 2 Unit 1610-1611 Tower One & Exchange Plaza,
3/F, 1033 M. H. del Pilar Street, Ermita, Manila
Ayala Avenue cor. Paseo de Roxas, Makati City Ayala Triangle, Ayala Avenue, Makati City
Office: 524-5326; 524-5186;
524-5267 Office: 858-7770 Office: 836-9633; 836-2719;
Exchange: 635-6756 to 60; Fax: 858-5676 836-1938 (Trading Department)
635-5665 Accounting Dept: 403-0709
Fax: 523-7907 Telefax: 403-0066
CUALOPING SECURITIES CORPORATION 141 Email: dwcapital1328@gmail.com
BPI SECURITIES CORPORATION 126 (Corporate Trading Participant)
(Corporate Trading Participant) SIMEON S. CUA E. CHUA CHIACO SECURITIES, INC. 147
VICTOR L. VITAL (Nominee Trading Participant) ERNESTO CHUA CHIACO
(Nominee Trading Participant) Nationality: FILIPINO (Natural Person Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: TEKTITE Trading Floor: AYALA
Trading Floor: AYALA Status: ACTIVE
Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information:
Contact Information: Suite 301, 1765 P.M. Guazon St., Paco, Manila
19/F, BPI Head Office, Ayala Avenue cor. Paseo de Roxas, Makati City 113 Rentas Street, Binondo, Manila
Office: 561-3862 Office: 242-5145; 241-9293
Office: Marketing 816-9190; 816-9192;
Exchange: 634-5745 to 46; Exchange: 891-9246 to 48
845-5541; 845-5543
634-5180; 634-5755 Fax: 243-3232
Administration 845-5289; 816-9678 Email: eccsi@yahoo.com
Operations 845-5735; 816-9554
Exchange: 891-9930; 845-5541; EAGLE EQUITIES, INC. 283
848-5543; 845-5545 DA MARKET SECURITIES, INC. 204
(Corporate Trading Participant) JOSEPH Y. ROXAS
Fax: 818-7809; 845-5733 (Natural Person Trading Participant)
Email: bpitrade@bpi.com.ph NESTOR S. AGUILA
Nationality: FILIPINO
Website: www.bpitrade.com (Nominee Trading Participant) Trading Floor: TEKTITE
Nationality: FILIPINO Status: ACTIVE
CAMPOS, LANUZA & COMPANY, INC. 128 Trading Floor: AYALA Contact Information:
(Corporate Trading Participant) Status: ACTIVE 779 Harvard Street, Mandaluyong City
GERARDO O. LANUZA JR. Contact Information: Office: 724-1584; 725-2777
(Nominee Trading Participant) Unit 6, 3rd Floor, The Fort Strip Bldg., Bonifacio Center, Exchange: 634-6684; 634-6283
Nationality: FILIPINO Fort Bonifacio Global City, Taguig, Metro Manila Fax: 725-2777
Trading Floor: TEKTITE Office: 887-5457; 887-6407
Status: ACTIVE Exchange: 891-9143 to 44 EASTERN SECURITIES DEV’T. CORP. 150
Contact Information: (Corporate Trading Participant)
Telefax: 887-5457
20/F, East Tower – PSE Centre, Exchange Road, Ortigas Center, Pasig City GENEROSA R. JACINTO
Office: 634-6881 to 87; 634-6888; Exchange 891-9144
Nationality: FILIPINO
636-3134; 638-3510; 636-3135; Email: dmsi8.care@houseofdavidgroup.ph Trading Floor: AYALA
636-3138 Status: ACTIVE
Exchange: 636-3001 to 05 DAVID GO SECURITIES CORPORATION 143 Contact Information:
Fax: 636-1167 (Corporate Trading Participant) Binondo Head Office:
Email: camposlanuza@yahoo.com DAVID C. GO 17/F, Tytana Building, Binondo, Manila
(Nominee Trading Participant) Office: 242-4006 to 09
CENTURY SECURITIES CORPORATION 130 Nationality: FILIPINO Fax: 241-0178
CHAN KOK BIN Trading Floor: TEKTITE Makati Sales Office:
(Natural Person Trading Participant) Status: ACTIVE 7/F, Tower One & Exchange Plaza
Nationality: FILIPINO Contact Information: Ayala Avenue cor. Paseo de Roxas, Makati City
Trading Floor: AYALA Rm. 309 Federation Center Building, Muelle de Binondo, Binondo, Manila Office: 848-5491 to 95
Status: ACTIVE Office: 242-2375 & 79; 242-2467 Exchange: 891-9340 to 44
Contact Information: Fax: 848-6349
Exchange: 634-5048 to 49; Email: eastern_securities@yahoo.com
Rm. 1105 Galleria Corporate Center EDSA cor. Ortigas Avenue, Quezon City 634-5178
Office: 633-7044 to 46
Fax: 242-2467 EASTWEST CAPITAL CORPORATION 149
Exchange: 891-9880 to 81
Fax: 633-7047 Email: dgosec@yahoo.com EDILBERTO B. BRAVO
(Natural Person Trading Participant)
CITISECURITIES, INC. 133 DBP-DAIWA CAPITAL MARKET PHILIPPINES, INC. 142 Nationality: FILIPINO
(Corporate Trading Participant) (Corporate Trading Participant) Trading Floor: AYALA
EDWARD K. LEE HIROAKI ARAI Status: ACTIVE
(Nominee Trading Participant) (Nominee Trading Participant) Contact Information:
Nationality: FILIPINO Nationality: DUTCH 3rd Floor U-Bix Bldg., 1344 Angono Street, Makati City
Trading Floor: TEKTITE Trading Floor: AYALA Office: 897-7124; 897-6807
Status: ACTIVE Exchange: 895-6008; 895-5638
Status: ACTIVE
Contact Information: Fax: 897-6805
Contact Information: Email: eastwest@ubix.com.ph
27/F, East Tower – PSE Centre Exchange Road, Ortigas Center Pasig City 18/F, Citibank Tower 8741 Paseo de Roxas, Makati City
Office: 635-5735 to 40 Office: 813-7344; 813-7454
Exchange: 634-6976 to 80 Exchange: 891-9109; 891-9119
Fax: 634-6696
EQUITIWORLD SECURITIES, INC. 153
Fax: 848-0105 (Corporate Trading Participant)
Email: admin@dbpdaiwasmbc.com.ph ANTONIO A. LOPA
CITISECONLINE.COM., INC. 203 (Nominee Trading Participant)
(Corporate Trading Participant) Nationality: FILIPINO
CONRADO F. BATE DEUTSCHE REGIS PARTNERS, INC. 209
(Corporate Trading Participant) Trading Floor: AYALA
(Nominee Trading Participant) Status: ACTIVE
Nationality: FILIPINO EMMANUEL O. BAUTISTA
(Nominee Trading Participant) Contact Information:
Trading Floor: AYALA 8/F, Tower One & Exchange Plaza
Status: ACTIVE Nationality: FILIPINO Ayala Avenue cor. Paseo de Roxas, Makati City
Contact Information: Trading Floor: AYALA Office: 848-5401; 848-5403 to 06
2401B East Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City Status: ACTIVE President/GM 848-5418
Office: 636-5411 Contact Information: Exchange: 891-9755 to 58
Fax: 634-6958; 645-4632 23/F, Tower One & Exchange Plaza, Fax: 848-5423
Ayala Avenue cor. Paseo de Roxas, Makati City eqworld_87@globelines.com.ph
CLSA PHILIPPINES, INC. 323 Office: Trunk line 894-6600
(Corporate Trading Participant) Research 894-6636 to 47 EVERGREEN STOCK BROKERAGE & SECURITIES, INC. 154
RAYMOND M. TEMPONGKO Sales 894-6651 to 58 (Corporate Trading Participant)
(Nominee Trading Participant) Operations 894-6618 to 35 FRANCISCO S. GAISANO
Nationality: DUTCH (Nominee Trading Participant
Exchange: 891-9090
Trading Floor: AYALA Nationality: FILIPINO
Status: ACTIVE Fax: Sales 894-6605
Trading Floor: AYALA
Contact Information: Research 894-6638 Status: ACTIVE
19/F Tower 2, The Enterprise Center, 6766 Ayala Avenue, Makati City Operations 894-6622 Contact Information:
Office: Trunkline: 860-4000 6/F, Tower One & Exchange Plaza
Sales & Dealing: 860-4030 DIVERSIFIED SECURITIES, INC. 145 Ayala Avenue cor. Paseo de Roxas, Makati City
Exchange: 891-9945; 759-4073 (Corporate Trading Participant) Office: 891-9451 to 58
Fax: 860-4065 RAMON C. GARCIA JR. Exchange: 891-9451 to 58
Email: raymond.tempongko@clsa.com (Nominee Trading Participant) Fax: 891-9459 to 60
Nationality: FILIPINO
COHERCO SECURITIES, INC. 387 Trading Floor: TEKTITE F. YAP SECURITIES, INC. 162
(Corporate Trading Participant) Status: ACTIVE (Corporate Trading Participant)
Contact Information: FELIPE U. YAP
WILFRED T. CO
(Nominee Trading Participant)
(Nominee Trading Participant) 5/F, PDCP Bank Centre Herrera cor. Alfaro Streets, Nationality: FILIPINO
Nationality: FILIPINO Salcedo Village, Makati City Trading Floor: TEKTITE
Trading Floor: AYALA Office: 892-2890; 892-4330; Status: ACTIVE
Status: ACTIVE 753-5250 to 53 Contact Information:
Contact Information: Exchange: 636-0814; 17/F Lepanto Building, 8747 Paseo de Roxas, Makati City
8/F, Herco Center, 114 Benavidez Street, Legaspi Village, Makati City 634-6630 to 31 Office: 856-7680
Fax: 892-4330 Exchange: 634-5171; 634-6917;
Office: 818-7736
Email: wena_ruiz@hotmail.com 634-5390 to 91; 634-6217 to 18
Exchange: 848-7301 Fax: 813-0865
Website: www.dtrade.net
Fax: 818-7331

104 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
FIDELITY SECURITIES, INC. 243 GOLDSTAR SECURITIES, INC. 170 IMPERIAL, DE GUZMAN, ABALOS & CO., INC. 182
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
BEN C. TIU JOSEPH L. MANCILLA JR. LEONIDES C. TIOTUICO
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: TEKTITE Trading Floor: TEKTITE Trading Floor: TEKTITE
Status: ACTIVE Status: ACTIVE
Status: ACTIVE
Contact Information: Contact Information:
2/F, JTKC Centre 2155 Pasong Tamo, Makati City Contact Information:
Ground Floor, EDSA Central Square
Office: 818-6774; 812-6267 22/F, East Tower – PSE Centre, Exchange Road, Ortigas Center, Pasig City Shaw Boulevard, Mandaluyong City
Exchange: 634-7110; 633-9707; Office: 636-0197; Office: 633-2686; 634-5717;
633-9710; 633-9711 633-7485 to 86 631-8651 loc. 145
Fax: 810-3536 Exchange: 634-6765 & 69; Exchange: 634-5161 & 66;
634-6983 & 87 634-5739; 634-5710
FIRST INTEGRATED CAPITAL SECURITIES, INC. 159 Fax: 633-7487 Fax: 633-4716
(Corporate Trading Participant) Email: imperdga@yahoo.com
MANUEL MAÑALAC JR. GUILD SECURITIES, INC. 172
(Nominee Trading Participant) (Corporate Trading Participant) INTRA-INVEST SECURITIES, INC. 183
Nationality: FILIPINO ANTONIO B. ALVAREZ (Corporate Trading Participant)
Trading Floor: AYALA JOSE MARIA A. DE LEON
(Nominee Trading Participant)
Status: ACTIVE (Nominee Trading Participant)
Contact Information: Nationality: FILIPINO
Nationality: FILIPINO
12/F, Tower One & Exchange Plaza Trading Floor: AYALA
Trading Floor: AYALA
Ayala Avenue cor. Paseo de Roxas, Makati City Status: ACTIVE Status: ACTIVE
Office: 759-4320 to 23; Contact Information: Contact Information:
891-9418 to 19 12/F, Tower One & Exchange Plaza 11/F, ACT Tower 135 Sen. Gil Puyat Avenue, Salcedo Village, Makati City
Exchange: 759-4320 to 23; Ayala Avenue cor. Paseo de Roxas, Office: 813-8293 to 94
891-9418 to 19 Makati City Exchange: 891-9206; 891-9208
Fax: 759-4326 Office: 891-9230; 891-9234 to 35 Fax: 892-1290
Exchange: 891-9232 to 37;
FIRST METRO SECURITIES BROKERAGE CORPORATION 267 891-9230 INVESTORS SECURITIES, INC. 181
(Corporate Trading Participant) Fax: 891-9231 (Corporate Trading Participant)
ROBERTO JUANCHITO T. DISPO EDWARD GO
(Nominee Trading Participant) Email: guildsec@tri-isys.com
(Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA H. E. BENNETT SECURITIES, INC. 175
Trading Floor: AYALA
Status: ACTIVE (Corporate Trading Participant)
Status: ACTIVE
Contact Information: JESUS M. DELA PEÑA Contact Information:
18/F, PS Bank Center, 777 Paseo de Roxas cor. Sedeño St. Makati City (Nominee Trading Participant) 6/F, Tower One & Exchange Plaza
Office: 859-0600 Nationality: FILIPINO Ayala Avenue cor. Paseo de Roxas, Makati City
Fax: 859-0699 Trading Floor: TEKTITE Office: 848-7032 to 33;
Email: customerservice@firstmetrosec.com.ph. Status: ACTIVE 891-9441 to 42
Contact Information: Exchange: 891-9441 to 46
FIRST ORIENT SECURITIES, INC. 157 Rm. 1704, World Trade Exchange Bldg., Fax: 848-7034
(Corporate Trading Participant)
215 Juan Luna Street, Binondo, Manila
TRINIDAD Y. KALAW J. M. BARCELON & COMPANY, INC. 188
(Nominee Trading Participant) Office: Executive Office 242-5733
Dealing Room 241-6284;241-6458 (Corporate Trading Participant)
Nationality: FILIPINO AMPARO V. BARCELON
Trading Floor: AYALA Exchange: 634-5030; 634-6235
Telefax: 245-6959 (Nominee Trading Participant)
Status: ACTIVE Nationality: FILIPINO
Contact Information: Email: hebsi@info.com
Trading Floor: TEKTITE
12/F, Tower One & Exchange Plaza Status: ACTIVE
Ayala Avenue cor. Paseo de Roxas, Makati City HDI SECURITIES, INC. 174 Contact Information:
Office: 891-9240; 891-9243 to 44 (Natural Person Trading Participant) 5 Pennsylvania, New Manila, Quezon City
Exchange: 891-9240 to 45 CHIA KIM TECK Office: 661-8396; 661-8398;
Fax: 848-6175 Nationality: SINGAPOREAN 661-7359
Email: fosisec@gmail.com Trading Floor: AYALA Exchange: 635-0236; 687-6317
Status: ACTIVE
FRANCISCO ORTIGAS SECURITIES, INC. 161 J. P. MORGAN SECURITIES PHILIPPINES, INC. 185
(Corporate Trading Participant) Contact Information:
Suite 2002, 20th Floor, The Orient Square, F. Ortigas Ave. (formerly (Corporate Trading Participant)
(No Nominee Trading Participant)
Emerald Ave.), Ortigas Center, Pasig City, 1605 MILAGROS CECILIA D. SUAREZ
Nationality: FILIPINO
Office: 687-7955; 687-7956; (Nominee Trading Participant)
Trading Floor: TEKTITE
687-7957; 910-6188 Nationality: CAYMAN ISLANDS
Status: ACTIVE
Trading Floor: TEKTITE
Contact Information: Fax: 910-6189
10th Floor, Ortigas Building, Ortigas Avenue, Pasig City Status: ACTIVE
Email: info@hdisecurities.com Contact Information:
Office: 631-2674; 631-2733
Exchange: 634-5149 to 53 31/F, Philam Life Tower
I. ACKERMAN & COMPANY, INC. 179 8767 Paseo de Roxas, Makati City
Fax: 631-2668 (Corporate Trading Participant) Office: General 575-1199;
MA. LUISA C. ACKERMAN Sales 885-7801; 757-2101
G.D. TAN & COMPANY, INC. 288
(Nominee Trading Participant) Exchange: 687-2364; 687-2370
(Corporate Trading Participant)
GILBERT TAN Nationality: FILIPINO Fax: 885-7058 to 59
(Nominee Trading Participant) Trading Floor: AYALA
Nationality: FILIPINO Status: ACTIVE
Trading Floor: TEKTITE Contact Information: JAKA SECURITIES CORPORATION 125
Status: ACTIVE 7/F, Tower One & Exchange Plaza (Corporate Trading Participant)
Contact Information: Ayala Avenue cor. Paseo de Roxas, Makati City KATRINA C. PONCE-ENRILE
22/F, East Tower – PSE Centre Exchange Road, Ortigas Center, Pasig City Office: 891-9070 to 72 (Nominee Trading Participant)
Office: 634-6255; 637-5686 Nationality: FILIPINO
Exchange: 891-9070 to 72
Exchange: 634-6255; 634-5408; Trading Floor: AYALA
Fax: 891-9353 Status: ACTIVE
634-6256 Email: i.ackerman@eudoramail.com
Telefax: 637-6256 Contact Information:
Email: gdtaninc@yahoo.com 8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas, Makati City
I.B. GIMENEZ SECURITIES, INC. 180 Office: 848-7122 to 24
GLOBALINKS SECURITIES & STOCKS, INC. 168 (Corporate Trading Participant) Exchange: 848-6413 to 15
(Corporate Trading Participant) IGNACIO B. GIMENEZ Fax: 848-7121
DAVID L. WUSON (Nominee Trading Participant)
(Nominee Trading Participant) Nationality: FILIPINO JSG SECURITIES, INC. 169
Nationality: FILIPINO Trading Floor: TEKTITE (Corporate Trading Participant)
Trading Floor: AYALA Status: ACTIVE JORGE S. GO
Status: ACTIVE Contact Information: (Nominee Trading Participant)
Contact Information: Nationality: FILIPINO
No. 42 3/F New Rosario Ortigas Arcade, Rosario Ortigas Extn., Pasig
7/F, Tower One & Exchange Plaza Trading Floor: TEKTITE
Office: 628-0000 local 306 Status: ACTIVE
Ayala Avenue cor. Paseo de Roxas, Makati City Exchange: 634-6260 to 61;
Office: 848-6341 to 42; Contact Information:
759-4136 to 37 634-6263 to 65; 634-5168 4/F, A & T Building, 244 Escolta Street, Binondo, Manila
Exchange: 891-9920 to 22 Fax: 642-7299 Office: 241-0594; 242-9380;
Telefax: 848-6341 to 43; 242-9385
759-4136 to 37 IGC SECURITIES, INC. 140 Exchange: 637-3159 to 61
(Corporate Trading Participant) Fax: 242-9392
GOLDEN TOWER SECURITIES & HOLDINGS, INC. 285 ISMAEL G. CRUZ
(Corporate Trading Participant) (Nominee Trading Participant)
KENNETH S. LAO Nationality: FILIPINO KING’S POWER SECURITIES, INC. 389
(Nominee Trading Participant) Trading Floor: AYALA (Corporate Trading Participant)
Nationality: FILIPINO Status: ACTIVE CARLOS J. CHING
Trading Floor: AYALA (Nominee Trading Participant)
Contact Information:
Status: ACTIVE Nationality: FILIPINO
10/F, Tower One & Exchange Plaza Trading Floor: AYALA
Contact Information:
4/F, Vernida I Condominium 120 Amorsolo Street, Ayala Avenue cor. Paseo de Roxas, Makati City Status: ACTIVE
Legaspi Village, Makati City Office: 891-9193 to 94 Contact Information:
Office: 813-2839; 892-1316 Exchange: 891-9190 to 92 Room 1602, Federal Tower, Dasmariñas Street, Binondo, Manila
Exchange: 891-9680 to 82 Fax: 891-9194 Office: 242-3048 to 49
Fax: 813-0321 Email: igcsec@pldtdsl.net Exchange: 848-5605 to 07
Fax: 241-1417
Email: kings389@yahoo.com.ph

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 105
 LARRGO SECURITIES COMPANY, INC. 193 MAYBANK ATR KIMENG SECURITIES, INC. 220 OPTIMUM SECURITIES CORPORATION 215
(Natural Person Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
Nationality: FILIPINO LORENZO ANDRES T. ROXAS EDDIE S. JOSE
Trading Floor: AYALA (Nominee Trading Participant) (Nominee Trading Participant)
Status: ACTIVE Nationality: FILIPINO Nationality: FILIPINO
Contact Information: Trading Floor: AYALA Trading Floor: AYALA
2/F, Rufino Tower Building, 6784 Ayala Avenue, Makati City Status: ACTIVE Status: ACTIVE
Office: 810-1183; 810-1353 to 54 Contact Information: Contact Information:
810-1440 & 46 17/F, Tower One & Exchange Plaza No. 11 E. O. Building cor. United & 2nd Streets, Bo. Kapitolyo, Pasig City
Exchange: 891-9530 to 33 Ayala Avenue cor. Paseo de Roxas, Makati City Office: 631-7831 to 36; 631-3989;
Fax: 817-2486 Office: 848-5298; 849-8888 633-2629
Dealing Room 848-5288 Exchange: 891-9581 to 85
LITONJUA SECURITIES, INC. 195 Exchange: 891-9120; Fax/Telefax: 631-8834 / 633-2629
(Corporate Trading Participant) 891-9124 to 25
EDUARDO V. LITONJUA JR. Fax: General 848-5738 PAN ASIA SECURITIES CORPORATION 218
(Nominee Trading Participant) Settlements 848-5285 (Corporate Trading Participant)
Email: atrke_sec@atr.com.ph LUCIO K. TAN, JR.
Nationality: FILIPINO
(Nominee Trading Participant)
Trading Floor: TEKTITE
MDR SECURITIES, INC. 208 Nationality: FILIPINO
Status: ACTIVE
Trading Floor: AYALA
Contact Information: (Corporate Trading Participant)
Status: ACTIVE
Room 205 DITZ Building, 444 T. M. Kalaw Street, Manila MANUEL D. RECTO
Contact Information:
Office: 521-1951 to 57 (Nominee Trading Participant)
9/F, Tower One & Exchange Plaza
Exchange: 634-7178; 634-5713 Nationality: FILIPINO
Ayala Avenue cor. Paseo de Roxas, Makati City
Fax: 521-7692 Trading Floor: AYALA
Office: 848-5153 to 54
Status: ACTIVE
Exchange: 891-9170 to 74
LOPEZ, LOCSIN, LEDESMA & COMPANY, INC. 197 Contact Information: Fax: 848-5154
(Corporate Trading Participant) 6th Floor, Unit 617AIC-Burgundy Empire Tower, ADB Avenue Email: panasec@edsamail.com.ph
DIONISIO LOPEZ corner Garnet & Sapphire Roads, Ortigas Center, Pasig City
(Nominee Trading Participant) Office: 706-2131; 706-2169 PAPA SECURITIES CORPORATION 219
Nationality: FILIPINO Exchange: 891-9226 to 28 (Corporate Trading Participant)
Trading Floor: AYALA Mobile: 0922-8814788; 0922-8823137; MYRON TIMOTHY P. PAPA
Status: ACTIVE 0922-8823136 (Nominee Trading Participant)
Contact Information: Nationality: FILIPINO
Roofdeck, Urban Building 405 Sen. Gil Puyat Avenue MERCANTILE SECURITIES. CORP. 205 Trading Floor: AYALA
(nr. MRT) EDSA, Makati City (Corporate Trading Participant) Status: ACTIVE
Office: 895-0624; 895-7310 NATHANIEL N. CO Contact Information:
Exchange: 891-9640 to 41 (Nominee Trading Participant) 6/F, S & L Building De la Rosa cor. Esteban Streets,
Fax: 896-0835 Nationality: FILIPINO Legaspi Village, Makati City
Trading Floor: AYALA Office: 817-8433 & 79; 817-8454;
LUCKY SECURITIES, INC. 198 Status: ACTIVE 815-1308
(Corporate Trading Participant) Contact Information: Exchange: 891-9630 to 32
EDDIE T. GOBING 3/F Goodwill Building 393 Sen. Gil Puyat Avenue, Makati City Fax: 815-1308
(Nominee Trading Participant) Office: 898-2984; 890-7336; Email: mcpapa@pacific.net.ph
Nationality: FILIPINO 890-6792; 890-1939
Trading Floor: TEKTITE Exchange: 891-9350 to 58 PCCI SECURITIES BROKERS CORP. 282
Status: ACTIVE 891-9350; 856-2880 (Corporate Trading Participant)
Contact Information: Fax: 895-2376 FEDERICO C. GALANG
19/F, West Tower – PSE Centre Exchange Road, Ortigas Center, Pasig City (Nominee Trading Participant)
Office: 634-6826; 634-6786; MERIDIAN SECURITIES, INC. 206 Nationality: FILIPINO
634-6747 & 60 (Corporate Trading Participant) Trading Floor: AYALA
Exchange: 634-5382 to 83; 634-5411; 634-5707 RONALDO S. SALONGA Status: ACTIVE
Fax: 634-6826 (Nominee Trading Participant) Contact Information:
Nationality: FILIPINO 4/F, PCCI Corporate Center, 118 L. P. Leviste Street,
LUY’S SECURITIES COMPANY, INC. 199 Trading Floor: TEKTITE Salcedo Village, Makati City
ENRIQUE LUY, SR. Status: ACTIVE Office: 893-3920; 893-3923 to 24;
(Natural Person Trading Participant) Contact Information: 893-4341
Nationality: FILIPINO 27/F, East Tower – PSE Centre, Exchange Road, Ortigas Center, Pasig City Exchange: 891-9952 to 55;
Trading Floor: TEKTITE Office: 635-6261 to 64 848-6284 to 85; 840-2991
Status: ACTIVE Exchange: 634-6931 to 36 Fax: 893-4340
Fax: 634-6937 Email: pcci.sbc@eastern.com.ph
Contact Information:
28/F, LKG Tower 6801 Ayala Avenue, Makati City Email: meridiansec@yahoo.com
PCIB SECURITIES, INC. 131
Office: 884-1271 to 85
(Corporate Trading Participant)
Exchange: 634-5175 to 76; MOUNT PEAK SECURITIES, INC. 210
GABRIEL U. LIM
634-6523 to 24; 634-6850 to 51 (Corporate Trading Participant)
(Nominee Trading Participant)
Fax: 884-1384 WILLIAM GAWECO
Nationality: FILIPINO
(Nominee Trading Participant)
Trading Floor: AYALA
MACQUARIE CAPITAL SECURITIES (PHILIPPINES), INC. 121 Nationality: FILIPINO
Status: ACTIVE
(Corporate Trading Participant) Trading Floor: AYALA Contact Information:
PAULO C. ROJAS Status: ACTIVE 20th Floor, BDO South Tower,
(Nominee Trading Participant) Contact Information: Makati Ave. cor. H. V. dela Costa St., Makati City
Nationality: CAYMAN ISLANDS 748 C. K. Building, Juan Luna St., Binondo, Manila Office: Dealing Room 878-4556;
Trading Floor: AYALA Office: 241-7990 & 92; 241-8043; 878-4558; 878-4562 to 63
Status: ACTIVE 243-1953 Operations 878-4559 to 60
Contact Information: Exchange: 891-9601 to 03 Compliance 878-4564
22nd Floor 6750 Ayala Avenue Bldg., Ayala Avenue, Makati City Fax: 241-8042 Exchange: 891-9008 to 09;
Office: 857-0888; 857-0834 Email: Info@mountpeak.com 891-9045
Fax: 857-0910; 857-0912 Website: www.mountpeak.com Fax: 840-7175
Email: cynthia.severino@asia.ing.com Email: nilo.sampayo@equitablepcib.com
NEW WORLD SECURITIES, INC. 211 carol.santana@equitablepcib.com
MANDARIN SECURITIES CORPORATION 200 (Corporate Trading Participant)
(Corporate Trading Participant) JOAN CHAI CHU PHILIPPINE EQUITY PARTNERS, INC. 338
CHARLES H. SHIH (Nominee Trading Participant) (Corporate Trading Participant)
(Nominee Trading Participant) Nationality: FILIPINO JOSEPH R. MADRID
Nationality: FILIPINO Trading Floor: TEKTITE (Nominee Trading Participant)
Trading Floor: TEKTITE Status: ACTIVE Nationality: FILIPINO
Status: ACTIVE Contact Information: Trading Floor: AYALA
Contact Information: Room 202 CNC Investment Bldg. 231 Juan Luna St., Binondo, Manila Status: ACTIVE
28/F, LKG Tower, 6801 Ayala Avenue, Makati City Office: 242-1759; 242-1767 Contact Information:
Office: 884-1271 to 85 Exchange: 634-5711 to 12; Unit 19C, Citibank Tower Citibank Plaza 8741 Paseo de Roxas, Makati City
Exchange: 634-6517 to 20 634-5721 Office: 814-5700
Fax: 884-1384 Fax: 242-1743 Exchange: 891-9162; 891-9222;
Email: jameschu@info.com.ph 891-9097
MARIAN SECURITIES, INC. 201 Fax: 814-5793 to 94
(Corporate Trading Participant) NIEVES SECURITIES, INC. 213
RICHARD L. LEE (Corporate Trading Participant) PHIL-PROGRESS SECURITIES CORPORATION 276
(Nominee Trading Participant) PHILIP S. HUANG (Corporate Trading Participant)
Nationality: FILIPINO (Nominee Trading Participant) ENRIQUE RAYMOND I. YAP
Trading Floor: AYALA Nationality: FILIPINO (Nominee Trading Participant)
Status: ACTIVE Trading Floor: AYALA Nationality: FILIPINO
Contact Information: Status: ACTIVE Trading Floor: AYALA
Unit B 26th Flr., Export Bank Plaza, Contact Information: Status: ACTIVE
106 Tytana Plaza, V. Tytana corner Insular Sts. Contact Information:
Chino Roces Avenue corner Gil Puyat Avenue, Makati City
Plaza Lorenzo Ruiz Binondo, Manila G/F, PPL Building, U. N. Avenue cor. San Marcelino Street, Manila
Office: 887-9067 to 68
Office: 477-7899; 477-8899 Office: 526-4207; 526-4208 &10
Exchange: 891-9309; 891-9316
Exchange: 891-8579 to 80
Fax: 814-0502 Exchange: 891-9306 to 08
Fax: 526-4208
Fax: 477-8899 loc. 291

106 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
PLATINUM SECURITIES, INC. 223 RCBC SECURITIES, INC. 217 SECURITIES SPECIALISTS, INC. 242
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
WILLIAM O. GO RAUL M. LEOPANDO FRANCISCO V. CANCIO
(Nominee Trading Participant) (Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA Trading Floor: AYALA
Status: ACTIVE Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information: Contact Information:
8/F, Antel 2000 Corporate Center 121 Valero St., Salcedo Vill., Makati 7/F Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City Rm. 903 National Life Insurance Bldg., Ayala Avenue, Makati City
Office: 887-1178 to 79 Office: Trunk line 889-6931 to 35 Office: 812-5905
Exchange: 891-9301 to 03 Exchange: 845-2641 Exchange: 891-9701 to 03
Telefax: 887-1178 Fax: 889-7642 Fax: 813-1682
Email: sales@rcbcsec.com Email: securities.specialists@gmail.com
PNB SECURITIES, INC. 224 Website: www.rcbcsec.com
(Corporate Trading Participant)
SINCERE SECURITIES CORPORATION 129
CARLOS A. PEDROSA REGINA CAPITAL DEVELOPMENT CORP. 235 (Corporate Trading Participant)
(Nominee Trading Participant) MARITA A. LIMLINGAN
JOHN KENNETH L. OCAMPO
Nationality: FILIPINO (Natural Person Trading Participant)
Nationality: FILIPINO (Nominee Trading Participant)
Trading Floor: AYALA
Trading Floor: AYALA Nationality: FILIPINO
Status: ACTIVE
Contact Information: Status: ACTIVE Trading Floor: TEKTITE
3/F, PNB Financial Center Roxas Boulevard, Pasay City Contact Information: Status: ACTIVE
Office: 526-3510; 526-3678; 832-5461 8/F, Tower One & Exchange Plaza Contact Information:
Dealing 526-3478 Ayala Avenue cor. Paseo de Roxas, Makati City 12/F, East Tower – PSE Centre, Exchange Road, Ortigas Center Pasig City
Exchange: 891-9841; 891-9846; Office: 848-5482 to 84 Office: 638-3549 to 50
891-9849 Exchange: 891-9413; Exchange: 634-6664; 634-6668
Fax: 526-3477 891-9415 to 17 Fax: 638-3549
Fax: 848-5482 to 84
PREMIUM SECURITIES, INC. 225 Email: rcdc@reginacapital.com SOLAR SECURITIES, INC. 286
(Corporate Trading Participant) (Corporate Trading Participant)
ANTONIO Y. TEE RTG & COMPANY, INC. 239 JOHNNY S. YAP
(Nominee Trading Participant) (Corporate Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO RAMON T. GARCIA Nationality: FILIPINO
Trading Floor: AYALA (Nominee Trading Participant) Trading Floor: TEKTITE
Status: ACTIVE Nationality: FILIPINO Status: ACTIVE
Contact Information: Trading Floor: AYALA Contact Information:
14/F, Tower One & Exchange Plaza Status: ACTIVE 30/F, East Tower – PSE Centre, Exchange Road, Ortigas Center Pasig City
Ayala Avenue cor. Paseo de Roxas, Makati City Contact Information: Office: Trunk line 636-6302
Office: 848-5915 to 17 6/F, Tower One & Exchange Plaza Direct lines 634-6651; 634-6653
Exchange: 891-9593 to 95 Ayala Avenue cor. Paseo de Roxas, Makati City Exchange: 636-6302; 634-6869;
Telefax: 848-5917 Office: 891-9480 to 84 634-6878
Exchange: 891-9480 to 84 Fax: 635-2466
QUALITY INVESTMENT & SECURITIES CORP. 230 Fax: 891-9483 Email: solar_sec_inc@yahoo.com
(Corporate Trading Participant)
BENJAMIN Y. CU S. J. ROXAS & COMPANY, INC. 240 STANDARD SECURITIES CORPORATION 247
(Nominee Trading Participant) (Corporate Trading Participant)
DOMINGO HERRERA
Nationality: FILIPINO SIMPLICIO J. ROXAS
(Natural Person Trading Participant)
Trading Floor: AYALA (Nominee Trading Participant)
Nationality: FILIPINO
Status: ACTIVE Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA
Contact Information:
Status: ACTIVE Status: ACTIVE
Unit 1602 Tytana Plaza
Plaza Lorenzo Ruiz, Binondo, Manila Contact Information: Contact Information:
Office: 241-0072; 241-0486; 6/F, Tower One & Exchange Plaza 34 Jefferson Street, West Greenhills, San Juan, M. Mla.
241-0547 Ayala Avenue cor. Paseo de Roxas, Makati City Office: 725-3905; 721-5887
Exchange: 891-9184 to 89 Office: 848-5065 to 69 Exchange: 891-9760 to 61;
Fax: 241-0166 Exchange: 891-9708 to 09; 891-9764 to 65
Email: qualsec@pldtdsl.net 891-9714 to 16; 891-9439 Fax: 721-5887
Fax: 891-9447
R & L INVESTMENTS, INC. 231 Email: sjroxas@ymail.com STRATEGIC EQUITIES CORPORATION 192
(Corporate Trading Participant) (Corporate Trading Participant)
RENE R. LEE SALISBURY BKT SECURITIES CORPORATION 229 ROBERTO Z. LORAYES
(Nominee Trading Participant) (Corporate Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO SIMON B. BAILEY Nationality: FILIPINO
Trading Floor: AYALA (Nominee Trading Participant) Trading Floor: AYALA
Status: ACTIVE Nationality: FILIPINO Status: ACTIVE
Contact Information: Trading Floor: AYALA Contact Information:
675 Lee Street, Mandaluyong City Status: ACTIVE 6/F, Tower One & Exchange Plaza
Office: 724-5207 Contact Information: Ayala Avenue cor. Paseo de Roxas, Makati City
Exchange: 891-9201 to 05 Executive Office: Office: 848-5159
Fax: 724-7210 12/F, Tower One & Exchange Plaza Exchange: 891-9620 to 21
Ayala Avenue cor. Paseo de Roxas, Makati City Fax: 848-5164
R. COYIUTO SECURITIES, INC. 233 Backroom Office: Email: sec@pldtdsl.net
(Corporate Trading Participant) 11/F, Tower One & Exchange Plaza
ROBERT COYIUTO JR. Ayala Avenue cor. Paseo de Roxas, Makati City SUMMIT SECURITIES, INC. 246
(Nominee Trading Participant) Office: 848-7373 to 76 (Corporate Trading Participant)
Nationality: FILIPINO Exchange: 891-9490 to 92 HARRY G. LIU
Trading Floor: TEKTITE Fax: 848-7375
(Nominee Trading Participant)
Status: ACTIVE Email: admin@publicsecuritiescorp.com
Nationality: FILIPINO
Contact Information:
Trading Floor: TEKTITE
5/F, Corinthian Plaza, SARANGANI SECURITIES, INC. 113
(Corporate Trading Participant) Status: ACTIVE
Paseo de Roxas, Legaspi Village, Makati City
ARTHUR W. ANTONINO Contact Information:
Office: 811-3064 to 67; 811-3201
Exchange: 634-6203 to 07; (Nominee Trading Participant) 21/F, East Tower – PSE Centre, Exchange Road, Ortigas Center Pasig City
634-5035; 634-6697 & 69 Nationality: FILIPINO Office: 631-1032 to 37
Fax: 811-3073 Trading Floor: AYALA Exchange: 631-1032 to 37
Email: rcoyiutosec@hotmail.com Status: ACTIVE Fax: 631-1033
Contact Information:
R. NUBLA SECURITIES, INC. 236 Unit 2 D1 Vernida I Condominium, SUNSECURITIES, INC. 368
RALPH NUBLA JR. 120 Amorsolo Street, Legaspi Village, Makati City (Corporate Trading Participant)
(Natural Person Trading Participant) Office: 817-5806; 840-4504; JERRY G. YU
Nationality: FILIPINO 817-5834 (Nominee Trading Participant)
Trading Floor: TEKTITE Exchange: 891-9176 to 79 Nationality: FILIPINO
Status: ACTIVE Fax: 817-5815 Trading Floor: AYALA
Contact Information: Email: sarangani95@yahoo.com Status: ACTIVE
Room 300, CNC Investment Bldg. Contact Information:
231 Juan Luna Street, Binondo, Manila SB EQUITIES, INC. 115 2703 One Corporate Center Meralco Avenue,
Office: 242-1595 to 96; 242-1770 (Corporate Trading Participant) cor. Julia Vargas Avenue, Pasig City
Exchange: 634-6525 to 29 EDUARDO M. OLBES Office: 477-6001 to 6005
Fax: 242-1666 (Nominee Trading Participant) Fax: 621-1018
Nationality: FILIPINO Email: sunsecuritiesinc@gmail.com
Trading Floor: AYALA
R. S. LIM & COMPANY, INC. 238 Status: ACTIVE SUPREME STOCKBROKER, INC. 249
(Corporate Trading Participant) Contact Information: (Corporate Trading Participant)
ALEJANDRO T. YU 18/F, Security Bank Centre 6776 Ayala Avenue, Makati City EDUARDO C. ARROYO JR.
(Nominee Trading Participant) Office: President 891-1092 (Nominee Trading Participant)
Nationality: FILIPINO Manager 891-1116 Nationality: FILIPINO
Trading Floor: AYALA Dealing 891-1243/57/58/78 Trading Floor: AYALA
Status: ACTIVE Accounting 813-3441
Status: ACTIVE
Contact Information: Settlement 891-1031 or 37
Contact Information:
1509 Galvani Street, Makati City Dealing 891-1021
Unit G, Garden Level, Corinthian Plaza, Paseo de Roxas Ave., Legaspi Village,
Office: 843-4313; 844-7235; Exchange: 891-9677;
891-9686 to 87 Makati City
844-2245
Fax: 813-3349 Office: 576-4384
Exchange: 891-9660 to 66
Fax: 844-2245 Email: SBEquities@securitybank.com.ph Exchange: 891-9401; 891-9403
Email: rslimcoinc@gmail.com Telefax: 901-4309

The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers 107
 TANSENGCO & COMPANY, INC. 251 UBS SECURITIES PHILIPPINES INC. 333 VICSAL SECURITIES & STOCK BROKERAGE, INC. 266
(Corporate Trading Participant) (Corporate Trading Participant) (Corporate Trading Participant)
ROBRINA L. GO FRANK SY GAISANO
FRANCISCO O. TANSENGCO (Nominee Trading Participant) (Nominee Trading Participant)
(Nominee Trading Participant) Nationality: SWISS Nationality: FILIPINO
Nationality: FILIPINO Trading Floor: AYALA Trading Floor: AYALA
Trading Floor: TEKTITE Status: ACTIVE Status: ACTIVE
Contact Information: Contact Information:
Status: ACTIVE 19/F, Tower One & Exchange Plaza
Contact Information: Unit 1009-1011, Tower One & Exchange Plaza,
Ayala Avenue cor. Paseo de Roxas, Makati City Ayala Triangle, Ayala Avenue, Makati City
Room 2308 World Trade Exchange Bldg. Office: Trunk Line 784-8888
Office: 856-3923
215 Juan Luna Street Binondo, Manila Sales 784-8864
Exchange: 891-9710 to 13
Operations 784-8813
Office: 241-7155 Fax: 856-3922
Compliance 784-8807
Exchange: 634-6675 & 85; Exchange: 891-8588; 891-8589 Email: Vssb_sec2005@yahoo.com.
633-1310; 634-8230 Fax: General 784-8899
Equities 848-2382 VSEC.COM,INC. 135
Fax: 241-7155
Logistics 784-8810 (Corporate Trading Participant)
Email: Robby.Go@ubs.com SENEN L. MATOTO
THE FIRST RESOURCES MANAGEMENT Tet.Achacon-Espallardo@ubs.com (Nominee Trading Participant)
& SECURITIES CORPORATION 252 Nationality: FILIPINO
MA. VIVIAN YUCHENGCO UCPB SECURITIES, INC. 259 Trading Floor: AYALA
(Corporate Trading Participant) Status: ACTIVE
(Natural Person Trading Participant)
VINCENT K. DE LEON Contact Information:
Nationality: FILIPINO (Nominee Trading Participant) Unit 1009-1011, Tower One & Exchange Plaza,
Trading Floor: AYALA Nationality: FILIPINO Ayala Triangle, Ayala Avenue, Makati City
Status: ACTIVE Trading Floor: AYALA Office: 856-5801 to 03
Status: ACTIVE Exchange:
Contact Information:
Contact Information: Fax: 856-3922
8/F, Tower One & Exchange Plaza 5/F, UCPB Building Makati Avenue, Makati City
Ayala Avenue cor. Paseo de Roxas, Makati City Office: 811-9000 WEALTH SECURITIES, INC. 269
Office: 848-6311 to 18 Office of the President loc. 9545
(Corporate Trading Participant)
Exchange: 848-6311 to 18 Compliance Officer loc. 9793
HOSANNA T. AYSON
Securities Settlement loc. 9972
Fax: 848-6272 (Nominee Trading Participant)
Accounting loc. 9970 & 9973
Email: 1stres@philwebinc.com Exchange: 891-9735 to 37 Nationality: FILIPINO
Fax: 811-9792 Trading Floor: TEKTITE
Email: sccastronuevo@ucpb.com – Compliance Status: ACTIVE
TOWER SECURITIES, INC. 253 Contact Information:
hbbongon@ucpb.com – Accounting
(Corporate Trading Participant) 21/F, East Tower – PSE Centre, Exchange Road, Ortigas Center Pasig City
RAYMOND PETER L. UNLAY UNICAPITAL SECURITIES, INC. 345 Office: 634-5038 to 42;
(Nominee Trading Participant) (Corporate Trading Participant) 637-3048 to 50
Nationality: FILIPINO LEONARDO R. ARGUELLES Exchange: 634-6222;
(Nominee Trading Participant) 634-6225 to 29
Trading Floor: TEKTITE Nationality: FILIPINO Fax: 634-5043
Status: ACTIVE Trading Floor: AYALA Email: info@wealthsecuritiesinc.com
Contact Information: Status: ACTIVE
18/F, East Tower – PSE Centre, Exchange Road, Ortigas Center Pasig City Contact Information: WESTLINK GLOBAL EQUITIES, INC. 270
3/F, Majalco Building Trasierra cor. Benavidez Streets, (Corporate Trading Participant)
Office: 635-4448 to 49; 635-4144; Legaspi Village, Makati City RAFAEL O. MUÑOZ
634-6726 Office: Dealing/Sales 812-2589; 812-2566; 817-5749 (Nominee Trading Participant)
Exchange: 634-5146; 634-5148; Operations/Dealing/Sales 892-0991 Nationality: FILIPINO
638-3847; 638-3850; 633-9411 Exchange: 891-9622; 891-9624 Trading Floor: AYALA
Fax: 818-2127
Fax: 635-4145 Status: ACTIVE
Email: mail@unicapsec.com
Email: tower_sec@yahoo.com Contact Information:
UOB-KAY HIAN SECURITIES (PHILIPPINES), INC. 260 6/F, Tower One & Exchange Plaza
(Corporate Trading Participant) Ayala Avenue cor. Paseo de Roxas, Makati City
TRANS-ASIA SECURITIES, INC. 254 Office: Trunkline: 848-6231 to 33
TAN CHEK TECK
(Corporate Trading Participant) Operations Dept.: 759-4012
(Nominee Trading Participant)
EUGENE ONG Nationality: SINGAPOREAN Exchange & Marketing: 891-9380 & 82
(Nominee Trading Participant) Trading Floor: AYALA Fax: 848-6229
Nationality: FILIPINO Status: ACTIVE Email: wgeirsc@yahoo.com
Contact Information: wgei_operation@yahoo.com
Trading Floor: TEKTITE
Unit 404 Locsin Building
Status: ACTIVE Ayala cor. Makati Avenue, Makati City WONG SECURITIES CORPORATION 273
Contact Information: Office: 887-7972 (Corporate Trading Participant)
Room 601-S State Centre Building, 333 Juan Luna Street, Binondo, Manila Exchange: 891-9526 to 27 EDEN WONG
Office: 242-2823; 242-3031; Fax: 887-7973 (Nominee Trading Participant)
Email: milasanjose@uobkayhian.com Nationality: FILIPINO
242-1031
Trading Floor: TEKTITE
Exchange: 634-5725 to 27; UPCC SECURITIES CORPORATION 100 Status: ACTIVE
634-5752 to 54 (Corporate Trading Participant) Contact Information:
Fax: 242-3031 WILLIAM C. UY 960 Ideal Street, Mandaluyong City
(Nominee Trading Participant) Office: 727-6317
Email: transasia_securities@ymail.com Nationality: FILIPINO
Exchange: 634-5735 to 36
Trading Floor: AYALA
Telefax: 718-0887
TRI-STATE SECURITIES, INC. 257 Status: ACTIVE
Contact Information: Email: wongsecuritiesonline@yahoo.com
(Corporate Trading Participant)
12/F Tower One & Exchange Plaza
GREGORIO T. CHAN Ayala Avenue cor. Paseo de Roxas, Makati City YAO & ZIALCITA, INC. 275
(Nominee Trading Participant) Office & Exchange: 891-8512; CARMELITA C. YAO
Nationality: FILIPINO 891-8514; 891-8519 (Natural Person Trading Participant)
Fax: 892-0215 Nationality: AMERICAN
Trading Floor: AYALA
Email: upcc_mla@i-manila.com Trading Floor: TEKTITE
Status: ACTIVE Status: ACTIVE
Contact Information: VALUE QUEST SECURITIES CORPORATION 190 Contact Information:
10/F, Tower One & Exchange Plaza (Corporate Trading Participant) 5H Vernida I Condominium 120 Amorsolo Street,
Ayala Avenue cor. Paseo de Roxas, Makati City GLENN PAUL R. GARCIA Legaspi Village, Makati City
(Nominee Trading Participant) Office: 813-3496; 892-5936;
Office: 848-5044 to 47
Nationality: FILIPINO 894-0553 to 55
Exchange: 891-9361 to 64 Trading Floor: TEKTITE Exchange: 634-6284; 634-6286;
Fax: 848-5047 Status: ACTIVE 634-6946
Contact Information: Fax: 813-3496; 818-6739
1006B West Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City Email: yaozial@boostunlimited.net
TRITON SECURITIES CORPORATION 136
Office: 636-6684; 636-6686
(Corporate Trading Participant) Fax: 687-0584
YU & COMPANY, INC. 278
EDWIN L. LUY Email: valuequestsecurities@gmail.com
(Corporate Trading Participant)
(Nominee Trading Participant) JOHNNY YU
Nationality: FILIPINO
VENTURE SECURITIES, INC. 263
EUSEBIO TANCO (Nominee Trading Participant)
Trading Floor: TEKTITE (Natural Person Trading Participant) Nationality: FILIPINO
Status: ACTIVE Nationality: FILIPINO Trading Floor: TEKTITE
Trading Floor: AYALA Status: ACTIVE
Contact Information:
Status: ACTIVE Contact Information:
26/F, LKG Tower 6801 Ayala Avenue, Makati City 16/F, East Tower – PSE Centre
Contact Information:
Office: 884-2081 to 83 7th Floor, Phil. First Building, 6764 Ayala Avenue, Makati City Exchange Road, Ortigas Center Pasig City
Exchange: 635-5531 to 35 Office: 848-6505; 887-8447 Office: 634-6611 & 18; 634-7577
Fax: 884-2088 Local nos. 7011/7012/7016 Exchange: 634-6248 to 50
Email: tsc136@yahoo.com Exchange: 891-9420 to 22 Fax: 634-5918
Telefax: 848-6503 Email: yunc@sfi.com.ph

108 The Philippine Stock Exchange, Inc. Annual Report 2011 Conquering Formidable Frontiers
Corporate Information

The Annual Stockholders’ Meeting of the Philippine Stock Exchange, Inc. will be held on Saturday, 5 May 2012,
8:00 a.m. at the New Function Room, Manila Golf and Country Club, Harvard Road, Forbes Park, Makati City.

Corporate Offices

Philippine Stock Exchange Plaza Philippine Stock Exchange Centre Philippine Stock Exchange Cebu Office
Ayala Triangle, Ayala Avenue, Exchange Road, Ortigas Centre, Insular Life Cebu Business Centre
Makati City 1226 Philippines Pasig City 1605 Philippines Mindanao Avenue corner Biliran Road
Tel. No.: (632) 819-4100 Tel. No.: (632) 688-7600 Cebu Business Park, Cebu City
Fax No.: (632) 891-9004/ (632) 864-9046 6000 Philippines
Website: www.pse.com.ph Tel. No.: (032) 266-3464
(Principal Office)

External Counsels

Angara Abello Concepcion Regala Quasha Ancheta Peña & Nolasco

& Cruz Law Offices Don Pablo Building, 114 Amorsolo Street
22nd floor, ACCRALAW Tower 1229 Makati City
Second Avenue corner 30th street, Crescent Park West  
Bonifacio Global City, 0399 Taguig City Rodrigo Berenguer & Guno
Suite 1517, 15th Floor, AIC Burgundy Empire Tower
D.P. Arce Law Office ADB Avenue corners Garnet and Sapphire Roads
Unit 612, 6/F, Tower 1, Cityland Condominium 10 Ortigas Center, Pasig City
6815 Ayala Avenue, Makati City
Zamora Poblador Vasquez & Bretaña Law Offices
Marcos Ochoa Serapio & Tan Law Firm 5th Floor, Montepino Building
30th Floor, Tycoon Centre, Pearl Drive, Ortigas Pasig City 138 Amorsolo St., Legaspi Village, Makati City

MM Lazaro & Associates

19th Floor Chatham House Building
116 Valero corner VA Rufino Sts., Salcedo Village, Makati City

External Auditor Stock Transfer Agent

 
SyCip Gorres Velayo & Co. Rizal Commercial Banking Corp.
SGV Building 6760 Ayala Avenue Stock Transfer Department
Makati City, Philippines G/F West Wing, 211 Grepalife Building
Sen. Gil Puyat Ave., Makati City

For inquiries, please contact:

Public and Investor Relations Section Social sites:

Tel. No. (632) 819-4100
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E-mail for shareholders and analysts: ir@pse.com.ph http://twitter.com/PhStockExchange
for general inquiries: pirs@pse.com.ph
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The Philippine Stock Exchange, Inc.

Access the online version of this annual report through

www.pse.com.ph/Annual_Report/2011

The Philippine Stock/Exchange,

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The Philippine Stock Exchange, Inc.
www.pse.com.ph
Public and Investor Relations Section
Tel No. (632) 6887600
email: pirs@pse.com.ph