The Philippine Stock Exchange, Inc.

Annual Report 2009

Contents
01 Financial Highlights 02 Chairman’s Message 04 President’s Message

06 Stock Market Performance 08 Highlights of Operations 44 PSE Board of Directors

46 Management Committee 47 Department and Section Heads

48 SCCP Board of Directors and Officers 49 Information Required by the Securities Regulation Code

51 Report of the Market Integrity Board 52 Report of the Corporate Governance Committee

53 Report of the Audit Committee

54 Statement of Management’s Responsibility for Financial Statements

55 Independent Auditors’ Report 56 Financial Statements

Balance Sheets, Statements of Comprehensive Income, Statements of Changes in Equity,

Statements of Cash Flows, Notes to the Financial Statements

101 Listed Issues as of Yearend 2009 104 List of Active Trading Participants

IBC Corporate Information

Vision Mission Corporate

A premier exchange with world-class standards
for trading securities and raising capital that
serves as a strong engine for a robust economy
About the Cover
The Philippine Stock Exchange (PSE) continues to be
invigorated even in a challenging market like a plant
that can flourish in unforgiving territory such as soil
and debris. Over time, the plant can send roots into the
rock itself, splitting the rock and finally emerging onto
the surface.
With a foundation built over time, the PSE commits to
revitalize itself as it grows confidently yet mindful that
there is still room for improvement. We are committed
to seek long-term initiatives aimed at boosting market
activity and shoring up investor confidence.
Offer products and services responsive to the
needs of investors and other stakeholders
Provide a facility for fair, accurate, complete and
timely information about listed companies, while
extending market education and awareness
programs to investors
Be a preferred venue for raising capital
Practice and promote good governance within
the Exchange and among listed companies and
trading participants
Operate efficiently to optimize shareholder value
Adopt world-class systems and global best
practices for an efficient, fair and orderly market
Develop a highly motivated and professional
workforce, committed to serve and excel
Values
Professionalism in delivering quality service and
in meeting the highest standards of excellence
Integrity, transparency and accountability in
implementing business programs and enforcing
decisions
Teamwork in working towards a common and
favorable goal for the market
Mutual respect in relating with fellow employees
Inner strength in prioritizing the common good
of the market instead of individual interest
Corporate responsibility in promoting market
growth hand in hand with community welfare
Financial
Highlights
(in thousand pesos)

CONSOLIDATED % PARENT %
2009 2008 Change 2009 2008 Change
RESULTS OF OPERATIONS:

TOTAL REVENUES 622,259 729,112 (14.66) 545,175 774,500 (29.61)
Listing Fees, Maintenance & Processing Fees 202,092 340,548 (40.66) 202,092 340,548 (40.66)
Trading Fees 139,283 112,306 24.02 139,283 112,306 24.02
Service Fees 177,576 136,404 30.18 - -
Interest Income 86,830 110,703 (21.56) 79,748 102,761 (22.39)
Others 16,478 29,151 (43.47) 124,052 218,886 (43.33)

Annual Report 2009

TOTAL OPERATING EXPENSES 344,520 301,187 14.39 308,402 273,325 12.83
INCOME BEFORE INCOME TAX 281,292 423,911 (33.64) 236,773 501,175 (52.76)
NET INCOME AFTER TAX 207,743 291,479 (28.73) 207,666 407,394 (49.03)

YEAREND FINANCIAL CONDITION: 1

The Philippine Stock Exchange, Inc.

TOTAL ASSETS 2,542,094 2,439,853 4.19 1,999,541 1,959,868 2.02
Cash and Cash Equivalents 393,731 132,489 197.18 325,470 60,133 441.25
Short-term Available-for-Sale Investments 315,898 367,633 (14.07) 200,111 313,480 (36.16)
Long-term Available-for-Sale Investments 610,473 841,401 (27.45) 585,900 801,554 (26.90)
Property and Equipment 509,184 452,186 12.60 507,764 450,581 12.69

TOTAL LIABILITIES 626,679 532,810 17.62 141,621 110,847 27.76
Current Liabilities 166,390 124,488 33.66 141,621 108,374 30.68
Clearing and Trade Guaranty Fund 455,396 402,289 13.20 - -

EQUITY 1,915,415 1,907,043 0.44 1,857,920 1,849,021 0.48
 Chairman’s
Message
The Philippine Stock Exchange, Inc.
2
Annual Report 2009
Dear Shareholders and Friends,
When we look back at 2009, we see an investment environment
consisting of two seemingly divergent realities – a struggling real
economy coupled with a vibrant financial sector.
On one hand, the real Philippine economy showed weakness.
Under the weight of the recent global crisis, the economy was
soft, and was dragged by a contraction in the manufacturing
sector, the sharp slowdown in exports and weaker personal
consumption. The Philippine economy slowed to a growth of 0.9
percent in 2009, compared with 3.8 percent in the previous year
as it defied expectations of an economic contraction.
On the production side, agricultural growth decelerated due
to the impact of tropical storms “Ondoy” and “Pepeng” on crop
production. The industrial sector, which also accounts for a third
of the economy, contracted during the year, as it also reflected
declines in manufacturing and electricity, gas and water output.
On the expenditure side, contributing to the slowdown were:
weaker personal consumption due to high prices of commodities;
lower investments in capital formation mainly from a contraction
of investments in durable equipment; and a steep contraction in
exports as merchandise exports continued to shrink from reduced
exports of garments, semiconductors and electric microcircuits,
to name a few.
There was the unusual trend in corporate earnings, which moved in
the opposite direction of the macroeconomy. Corporate earnings
rose by a remarkable 61 percent to P283.8 billion during the first
nine months of 2009 from P176.5 billion a year ago. The upsurge
in net income figures was largely driven by huge one-time gains
from asset sales and a low-base effect when profits declined in
2008. The asset sales reinforced the view that valuations were too
low to ignore and that stocks were worth picking up after the
market hit bottom.
If we adjust for these exceptional items, it would reflect an
estimated core net profit growth of 29.5 percent for the first nine
months of the year.
The financial markets also showed a substantial recovery from
the crisis of 2008. The Philippine Stock Exchange index (PSEi)
closed the year with a spectacular gain not seen in 15 years as
it ended 2009 at 3,052.68 points, posting an annual gain of 63
percent. Even the financials index demonstrated an increase of
46.6 percent. These indicators suggest that investor optimism
discounted the signals in the real economy and had a direct
correlation with earnings results. It was also a reflection of the
high levels of locally generated liquidity that needed to be put
to work in the form of active investments, as well as increased
foreign buying.
By the end of the year, trading activity
rebounded by as much as 32.3 percent to
record an average daily turnover of P4.1
billion – or near the levels we have seen
before the crisis.
The low interest rate environment further
underscored the attractiveness of the
equities market. The 90-day T-bill offered by
the government fetched an average yield of
4.2 percent, lower than its 5.4 percent yield
in 2008.
The peso appreciated against the US
dollar in 2009, moving together with the
appreciation of most currencies in the
region. The peso closed at P46.20 per dollar,
stronger than its P47.52 level against the
greenback in 2008.
Compared with our peers in the region,
the Philippine stock market fared better
in terms of growth in value turnover at 23
percent. Despite the impressive increase in
trading activity, our Exchange still has the
lowest market capitalization, value turnover
levels and universe of listed companies
and products to offer. This weighs on our
capability to be competitive in the global
market.
Investors however saw value recovery
in their investments as domestic market
capitalization at the close of the year soared
61.4 percent to P3.99 trillion, its highest
recorded growth. All PSE sector indices
also posted gains in 2009, led by the mining
& oil and the industrial sectors which
surged 234.1 percent and 115.7 percent,
respectively.
While we saw a rebound in market
capitalization, the environment for new
equity issuances remained very challenging.
A combination of the uncertainties in the
global financial market, with relatively thin
local liquidity and expected volatility, put a
damper on new issues.
Despite the recovery in market valuations,
corporate issuers responded in a classical
manner, with corporate debt issues reaching
record levels compared with three listings
in the stock market. This was due to the
historically low interest rate environment.
To illustrate, there were seven corporate
bond issuances in 2009 amounting to P94.3
billion.
With such challenges, your Exchange
intensified and continued to pursue its
initiatives in preparation for renewed
market activity in 2010.
With landmark pieces of legislation such as
the Personal Equity and Retirement Account
Act (PERA) and the Real Estate Investment
Trust (REIT) Law, we are hopeful that the
roster of Exchange-listed companies will
continue to grow in 2010.
We also began a number of corporate
governance initiatives that would benefit
the market. The ongoing projects include
the upgrading of our listing and disclosure
rules as we continue to align with
international best practices. We are also
pursuing the development of a corporate
governance-based listing board called the
“Maharlika Board” for listed companies
that want to subject themselves to higher
standards of corporate governance.
Transparency helps investors make better,
informed decisions and there is a body
of evidence that this translates to higher
corporate valuations.
“With such
challenges, your
Exchange intensified
and continued to
pursue its initiatives
in preparation for
renewed market
activity in 2010.”
Our Amended Market Regulation Rules
implemented changes to further improve
the regulation of our trading participants
(“TPs”). Among the salient provisions of
the amended rules are the enhanced
requirements for membership in the
Market Integrity Board, the increase in
the unimpaired paid-up capital of TPs and
the classification of TP offenses. Investors
should feel more confident in dealing with
the TPs on an ongoing basis.
We’ve had internal corporate governance
reviews that affect our operational
efficiency. The office integration initiative
is one such example. Under this initiative,
the Exchange’s headquarters which
are currently housed in two separate
locations—Tektite Towers in Pasig City
and Ayala Tower One along Ayala Avenue
in Makati—shall be integrated into one
main office. The project aims to increase
the efficiency of the Exchange’s operations
and reduce its operational costs. The target
completion of the project is towards the
second half of 2010.
Recognizing the need for regional
integration across markets, your Exchange
deepened its collaboration with other
ASEAN Exchanges by embarking on
the development of a trading linkage
in cooperation with the NYSE Euronext
Technology SAS. We envision the ASEAN
trading linkage to facilitate increased intra-
ASEAN trading and allow the marketing of
ASEAN as an asset class in the global market.
Furthermore, the Exchange entered into
strategic alliances with major bourses in
the region such as the Shenzhen Stock
Exchange, Ho Chi Minh Stock Exchange
Annual Report 2009
and The Korea Exchange, Inc. to explore
mutual cooperation through information
and experience sharing which will further
promote the capital markets in the region.
Despite the challenging market conditions,
we welcomed three new listings on the
stock market, namely: Ripple E-Business 3
International, Inc. (RPL) which listed its
The Philippine Stock Exchange, Inc.
shares through an initial public offering and
AgriNurture, Inc. (ANI) and Century Peak
Metals Holdings Corporation (CPM) which
listed their shares by way of introduction.
As we continue to face a number of
challenges in both the domestic and global
arena, your Exchange remains steadfast
in pursuing reforms and initiatives that
are geared towards improving investor
confidence and enhancing shareholder
value.
Thank you very much.
HANS B. SICAT
Chairman of the Board
 President’s
Message
The Philippine Stock Exchange, Inc.
4
Annual Report 2009
Dear Shareholders and Friends,
We were hopeful at the start of the year
that 2009 would serve as the turnaround
year for the stock market and your
Exchange following a very challenging
2008, perhaps one of the most difficult
years in the bourse’s history. On hindsight,
I believe we can now say that 2009 did not
disappoint.
At the start of the year, we stood on shaky
ground as we saw first quarter figures
recording an average daily turnover of
below P2 billion and our main index, the
Philippine Stock Exchange Index (PSEi)
falling lower than the 1,900-point level.
Investors remained cautious while waiting
for signs that the global financial crisis
that struck late in 2007 has reached the
bottom. In no time, investors found out
that they would not have to wait long.
During the second quarter, our market
started to pick up and from there, never
looked back. And by the end of 2009, the
PSEi had grown by 63 percent to post its
biggest annual turnaround since 1994.
The turnaround in prices helped our
domestic market capitalization to grow
at its fastest pace in the history of the
stock market. The 61 percent increase in
domestic market capitalization to P3.99
trillion by the end of 2009 from its year-
end level of P2.47 trillion in 2008 is an all-
time high.
Helping boost the increase in the market’s
size were the new listings of the shares
of three companies. These were software
developer Ripple E-Business International,
Inc. which conducted an initial public
offering; exporter AgriNurture, Inc. and
mining company Century Peak Metals
Holdings Corporation, which both listed
their shares by way of introduction.
Capital raised in 2009 also grew 23 percent
to P38.77 billion while trading activity, as
measured by the total value turnover, for
the period jumped 30 percent to P994.15
billion.
Our local investor base continued to
buoy the stock market as domestic trades
accounted for 67.6 percent of total trades
for the year. Meanwhile, foreign investors
were net buyers at P14.92 billion,
reversing the P22.16 billion net foreign
selling recorded in 2008.
The recovery however was not enough to
swing our net income figures higher than
what we recorded in 2008. In 2009, we
posted a consolidated net income of P208
million, 28.7 percent lower than what we
posted in 2008. However, we managed
to reach these figures despite only one
additional listing on the main board, due
in large part to increased trading activity
and the efficient use of the company’s
resources.
Despite the challenging market, your
Exchange was invigorated by the broad
recovery in investor sentiment, the
passage of capital market-friendly laws, and the strong support of
our local investor base.
The year 2009 also marked the second year of our five-year “LEVEL
UP” strategic agenda which aims to provide a long-term vision
in operating your Exchange and to bring into fruition our goal
of becoming a premiere bourse. LEVEL UP stands for List more
companies and securities; Expand and educate the investor base;
Value and enforce corporate governance standards; Enhance
shareholder value; Launch new products and services; Upgrade
market infrastructure and human resources; and Partner with
government and other stakeholders.
With the support of our board of directors, stakeholders, partners,
and employees, we have made significant inroads through our
LEVEL UP strategy as we followed through on the business plans
we set out for 2009.
“Despite the challenging market,
your Exchange was invigorated
by the broad recovery in investor
sentiment, the passage of capital
market-friendly laws, and the
strong support of our local
investor base.”
We have enlisted the help of Thomson Reuters to provide valuable
market information using our outdoor video display along Ayala
Avenue. The PSE also continued to nurture a younger breed of
investors through the continuous implementation and monitoring
of CHED Memorandum Order (CMO) 39, and the successful pilot
testing of capital market topics as part of high school education in
the country.
The growth of the PSE depends significantly on how it positions
itself vis-à-vis its peers in the region and globally. With this in mind,
the PSE continued to work with other ASEAN Exchanges in selecting
a viable partner to implement the ASEAN trading linkage gateway.
This is aimed at lifting ASEAN Exchanges to new heights amidst
growing competition and consolidation of markets globally. ASEAN
Exchanges eventually selected no less than a global leader in NYSE
Euronext Technology SAS to provide the technology solution for
the ambitious ASEAN trading linkage project.
In keeping with its vision to become a premiere exchange in the
region, the PSE hosted the Annual General Assembly of the Asian
and Oceanian Stock Exchanges Federation (AOSEF) in Cebu on
April 23, 2009. During this event, the PSE signed a Memorandum
of Understanding with the Shenzhen Stock Exchange to explore
mutual cooperation through information and experience sharing.
This was followed by similar Memoranda of Understanding with the
Ho Chi Minh Stock Exchange and The Korea Exchange, Inc. in the
first quarter of 2010.
For most observers, the turnaround in 2009 was a pleasant surprise
after a tumultuous 2008. However, as much as we would like to
relish our victories in the past year, we are mindful that we still have
a long way to go. We need to keep building on the momentum
that has been created by the market’s recovery. In this light, the
Exchange has lined up key programs for the stock market to kick-off
the new decade, further support our LEVEL UP agenda and push the
Exchange to new heights.
Some of the exciting plans for this year include the launch of a new
trading system; the implementation of our revised consolidated
listing and disclosure rules; the launch of the Maharlika Board
or the special corporate governance listing segment; the office
integration plan to merge our Ayala and Tektite offices; and the
launch of our Real Estate Investment Trust (REIT) product.
The PSE is also expected to benefit from the passage of two
additional and major capital market-friendly laws passed by
Congress in 2009. On June 30, 2009, the President of the Republic
of the Philippines signed into law Republic Act No. 9648, which
permanently exempts stock trades from the Documentary Stamp
Tax (DST).
On December 17, 2009, the REIT Act of 2009 became a law, which
is widely anticipated to usher in fresh listings on the bourse upon
its full implementation.
As the global economy slowly picks up in 2010, your Exchange
Annual Report 2009
has all the more reason to remain optimistic that we will continue
to grow amid renewed investor confidence and a more favorable
macroeconomic environment. Your Exchange also remains
confident that the new leadership following the 2010 elections will
continue to carry on reforms that will further boost the development
of the capital market.
We also take great joy in the fact that the Exchange contributed 5
to the passage of five capital market-related laws—namely:
The Philippine Stock Exchange, Inc.
the Personal Equity and Retirement Account Act (PERA), Credit
Information System Act (CISA), removal of the Documentary Stamp
Tax (DST), REIT Act and the Financial Rehabilitation and Insolvency
Act (FRIA).
These fundamental market reforms, together with our inroads in
capital market education; trading system upgrade; market integrity;
and corporate governance reform, position the Exchange for further
growth and development.
Finally, on a more personal note, I would like to express my deepest
gratitude to the PSE and our Board of Directors for having given
me the distinct honor and privilege of serving as PSE President and
CEO for more than five years. The past years, while not exactly a
“walk in the park”, have been very fulfilling both professionally and
personally.
Thank you very much and I wish you all the best.
FRANCISCO ED. LIM
President and CEO
 Stock Market
Performance
After suffering a major setback in 2008
amidst the global economic crisis, the
The Philippine Stock Exchange, Inc.
Philippine stock market recorded a
remarkable turnaround in 2009 evidenced
by the historic upsurge of the main index.
It was a year that was marked with
uncertainty considering the events that
unfolded in the previous years such as the
6 collapse of the US housing market and the
eventual downward spiral of stock and
Annual Report 2009
financial markets around the world. But
when the dust of the turmoil has all but
settled, the Philippine stock market once
again showed its resilience and character
and built a new momentum for growth.
The PSEi surged by 1,179.83 points at the
close of 2009 to finish the year at 3,052.68
points, 63.0 percent higher than its close
in 2008. This proved to be the highest
annual gain of the main index since the
local stock market adopted a single main
index in 1994 under a unified Exchange. A
late surge allowed the benchmark index to
hit its highest mark of 3,119.96 points on
December 2, 2009.
The local stock market reflected the
cautious but growing optimism about a
successful recovery. The improvement in
the profits of listed companies provided
a strong basis for the gains of stock
prices. The combined net income of listed
companies during the first nine months of
the year increased by 60.8 percent, along
with a 3.1 percent growth in aggregate
revenues. *
This prevailing optimism and solid
corporate fundamentals allowed the
market to discount the lackluster
performance of the Philippine economy
that only managed to grow by less than
one percent or 0.9 percent in 2009. The
economy continued to reel from the
*The figures were collated from 231 out of 246 domestic companies, whose interim financial reports for the said period were submitted to the PSE as of November 23, 2009.
sluggish performance of the exports sector
which suffered consecutive double-digit
monthly contractions as the economic
slump in the US and other export partners
of the Philippines continued to dampen
demand for exported goods. The string of
typhoons that left widespread damages
in Luzon also slowed down production,
particularly of agricultural products.
In anticipation of the challenging road to
recovery, the government continued to
help stimulate the economy by hiking its
expenses in critical areas. This however,
puts a heavier burden on government’s
efforts to manage the fiscal deficit. In
2009, the government incurred a fiscal
deficit of P299 billion by yearend, much
higher than the P68 billion deficit
recorded in 2008 and overshooting the
programmed deficit of P250 billion for
the full year 2009. The year’s shortfall was
aggravated by slower revenue collections,
which decreased by 6.6 percent, and
soaring government disbursements,
which grew by 11.9 percent.
The country’s financial sector remained
stable behind the deliberate monetary
policies of the Bangko Sentral ng Pilipinas
(BSP), which have been instrumental in
helping the local economy weather the
recent crisis. The central bank’s policy
actions over the last few years, along with
the declining inflation rate, allowed the
BSP to further ease its key interest rates
early in the year. The BSP reduced its
overnight borrowing and lending rates
five times during the first half of 2009, and
elected to keep the said rates low at 4.00
percent and 6.00 percent, respectively,
considering the relatively benign inflation
rate and to help sustain economic activity.
Auctions for the 91-day Treasury bills fared
much better in 2009 compared with the
previous year. The gradual recovery in
the equities market allowed rates in low-
risk instruments to remain low, with the
average interest rate of the benchmark 91-
day short-term debt paper even declining
to 4.19 percent at the end of the year from
an average of 5.39 percent in 2008.
After experiencing double-digit inflation
levels in 2008, the country’s headline
inflation rate tapered off in 2009. The
headline inflation rate ended the year with
an average of 3.2 percent, significantly
lower than the 9.3 percent average
posted in 2008. Major commodity groups
continuously recorded slower price
increases throughout the year, allowing
the inflation rate to decelerate to a 22-
year low of 0.1 percent in August.
The Philippine peso, along with other
Asian currencies, gained value from the
weakening US dollar as it closed the
year slightly up by P1.32 or 2.8 percent
at P46.20 against the greenback from
last year’s finish of P47.52 per US dollar.
The continued inflows from overseas
remittances also helped perk up the
supply of dollars.
Financial markets started the year on a
sour note as investors were skeptical over
the US$787 billion economic stimulus
package enacted by the US government
and the financial rescue plan rolled out by
the US Treasury Department in February.
Analysts expressed disappointment
over the plan’s lack of detail on how the
government would purge the financial
system of its bad assets, causing the Dow
Jones Industrial Average (DJIA) to plunge
by 4.6 percent or 381.99 points on February
10, 2009.
After being sidetracked by the much-
publicized failure of its financial system
in 2008, Wall Street began picking up the
pieces by demonstrating its resiliency
and potential to recover from one of the
biggest economic crises in history. The
DJIA ended 2009 with its best performance
in six years, recording an increase of 18.8
percent to finish at 10,428.05 points. The
local stock market tracked the resurgence
of Wall Street by breaking the 3,000-level
on November 11 at 3,047.14 points to reach
its highest level in 19 months, with the DJIA
surging to its own 13-month high on the
same date.
(Fed) announced the purchase of long-
term Treasury bonds, a move which the
institution has not done in four decades.
Aside from purchasing up to US$300 billion
in longer-term Treasury securities over
a six-month period, the Fed planned to
purchase an additional US$750 billion of
agency mortgage-backed securities, and
another US$100 billion worth of agency
debt. The Fed also maintained its target
range for the federal funds rate at zero to
0.25 percent to further support economic
activity and hasten the improvement of
market conditions.
While 2009 generally carried a theme of
optimism among investors, the Dubai World
incident that happened towards the end of
the year served as a reminder that the road
to recovery has not yet been well paved. On
November 25, Dubai World, a government-
owned investment conglomerate which
helped engineer Dubai’s economic
surge, announced that it is seeking a six-
month reprieve from an estimated US$26
billion worth of debt payments. The
shockwaves to the stock markets of the
United Arab Emirates (UAE), and also had a
negative effect on global stocks, albeit not
as pronounced as UAE’s.
After falling to around the US$30 per
barrel level towards the end of 2008, crude
oil prices slowly worked their way back
up in 2009, spurred by supply concerns
and a declining US dollar. US crude oil
futures traded at the New York Mercantile
Exchange (NYMEX) went up to as high as
US$81.37 per barrel on October 21 before
finishing the year at US$79.36 per barrel, a
77.9 percent jump from their previous close
of US$44.60 per barrel in 2008.
Gold prices traded at the US Commodity
Exchange reached new record highs in
2009 and peaked at US$1,217.40 per ounce
on December 3. Gold eventually settled
at US$1,096.20 per ounce at the end of
2009, 25.3 percent higher than its close the
previous year.

Annual Report 2009

To further bolster the US government’s news of another impending default sent
program to revive its economy and
spur optimism, the US Federal Reserve

Figure 1. Philippine Stock Market Performance in 2009

3,300
FEBRUARY MAY JULY 7
Exports in GDP falls to Moody’s
December 2008

The Philippine Stock Exchange, Inc.

0.4% growth in upgrades
plunge by the 1st quarter the country’s
3,100 40.4% to record credit rating as
its steepest a result of a
monthly decline stable financial
OFW sector
remittances
2,900 in March reach DECEMBER
new monthly Dubai World
MARCH record high seeks to
US government restructure its
injects US$1 US$26 billion
2,700 trillion debt
in the economy
to stabilize
financial markets OCTOBER
Gold prices PSEi closes
2,500 JANUARY PSEi breaks
reach an the year 63
percent higher
all-time high
The global through while oil than the
economic crisis 2,000-point prices record previous
slows down level, closing at year-long year’s close
2,300 GDP growth to
4.6% in 2009
2,040.25 points
on March 27
highs

from 7.2% the JUNE

previous year Imports SEPTEMBER
record largest Inflation
2,100 year-on-year rate drops
percentage to 0.1%, its NOVEMBER
decline, lowest in 22 Dow Jones hits
dropping by years 13-month high;
37.4% in April PSEi reaches
1,900 3,000-level
IMF revises its
APRIL GDP forecast AUGUST
The BSP reduces for the GDP records Local economy
key interest Philippines slower, albeit records
1,700 rates for the to a 1 percent better than
expected
disappointing
third time in contraction 0.8% growth in
four months growth of 3rd quarter
due to easing 1.5% in 2nd
inflation quarter
1,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
 Highlights of Operations
The LEVEL UP
Strategic Plan
The Exchange continues to implement its LEVEL UP agenda, a five-
year strategic plan that is focused on improving its operations and
performance to be at par with international best practices.
The Philippine Stock Exchange, Inc.

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- list more companies and securities

E- expand and educate the investor base
8 V- value and enforce corporate governance standards
E- enhance shareholder value
Annual Report 2009

L- launch new products and services

U - upgrade market infrastructure and human resources

P - partner with government and other stakeholders
Capital raising grows 23% in
2009 amid challenging market
L - List more companies and securities

New Listings
and Capital Raised
The Exchange welcomed three new companies to its roster of listed
firms in 2009. Ripple E-Business International, Inc. (RPL) conducted
the year’s sole initial public offering and was listed under the Small
and Medium Enterprises Board, the first listing on the SME Board
since 2003. The two other companies namely, AgriNurture, Inc.
(ANI) and Century Peak Metals Holdings Corporation (CPM) listed
their shares by way of introduction.

Total capital raised in 2009 from initial public offerings, stock rights
offerings and private placements amounted to P38.77 billion, up
by 22.9 percent from the P31.55 billion recorded the past year.

The investment landscape changed after the US subprime debacle.

Annual Report 2009

A listing by way of introduction allowed companies to list without
the conduct of a public offering prior to initial listing.

The Philippine Stock Exchange, Inc.

Top: Department of Agriculture Secretary Arthur Yap graces AgriNurture,
Inc.’s listing ceremony.
Above: Ripple E-Business International, Inc. conducts the first IPO of the
Exchange in 2009.
Left:Century Peak Metals Holdings Corporation makes its listing debut on
the stock exchange.

Table 1. Initial Public Offerings in 2009

Company Code Listing Date Offer Price (in Php) No. Of Shares Offered Offer Proceeds (in Php)
Ripple E-Business International, Inc. RPL 03-Sep-09 4.37 4,579,122 20,010,763.14
Primary Offering 4,579,122 20,010,763.14

AgriNurture, Inc. ANI* 25-May-09 23.25** NA NA

Century Peak Metals Holdings Corporation CPM* 06-Oct-09 1.00** NA NA

TOTAL INITIAL PRIMARY OFFERING PROCEEDS 20,010,763.14

TOTAL INITIAL SECONDARY OFFERING PROCEEDS -
TOTAL INITIAL OFFERING PROCEEDS 20,010,763.14
*Listing by way of introduction **Listing price
 Table 2. Select PSE Market Indicators (in PhP billion)

MARKET INDICATOR 2005 2006 2007 2008 2009 2009 vs 2008

% change
PSE Index (PSEi), Yearend close 2,096.04 2,982.54 3,621.60 1,872.85 3,052.68 63.00

Total Value Traded (in Php billion) 383.52 572.63 1,338.25 763.90 994.15 30.14
Average Daily Value Traded (in Php billion) 1.56 2.32 5.48 3.11 4.11 32.29
Foreign Buying (in Php billion) 206.88 348.97 680.33 361.00 329.28 -8.80
Foreign Selling (in Php billion) 183.35 280.48 624.76 383.17 314.37 -17.96
Net Foreign Buying/(Selling) (in Php billion) 23.53 68.49 55.57 (22.16) 14.92 167.13
The Philippine Stock Exchange, Inc.

Total Foreign (in Php billion) 390.24 629.46 1,305.09 744.17 643.65 -13.51
Share of Foreign Trading to Total Trading (in percent) 50.88 54.96 48.76 48.71 32.37 -33.54
Capital Raised (in Php billion) 51.88 57.23 90.13 31.55 38.77 22.87
Initial Public Offerings (in Php billion) 29.83 19.02 18.91 1.95 0.02 -98.97
Additional Listings (in Php billion) 22.06 38.20 71.23 29.60 38.75 30.89
Market Capitalization, Yearend (in Php billion) 5,948.74 7,173.19 7,977.61 4,069.23 6,029.08 48.16
Domestic Firms (in Php billion) 2,129.95 3,352.00 4,266.82 2,474.05 3,991.93 61.35
Foreign Firms (in Php billion) 3,818.79 3,820.84 3,710.79 1,595.17 2,037.15 27.71
No. of Listed Companies, Yearend 236 239 244 246 248 0.81
Domestic 234 237 242 244 246 0.82
10 Foreign 2 2 2 2 2 0.00
No. of Listed Issues, Yearend 309 313 314 316 318 0.63
Annual Report 2009

Domestic 307 311 312 314 316 0.64

Foreign 2 2 2 2 2 0.00

Trading Transactions
Trading activity picked up in 2009 with total
value turnover narrowly missing the P1-
trillion mark as it surged by 30.14 percent
to P994.15 billion. Average daily turnover
also improved to P4.11 billion, a 32.29
percent increase from the P3.11 billion
recorded in 2008. Due to the impressive
rise in trading activity, the Philippine stock
market ranked third in value turnover in
dollar terms among Asian stock markets
and fourth among the 51 global stock
exchanges that are members of the World
Federation of Exchanges.
Foreign Trading
Despite uncertainties still lingering from
the aftermath of the global financial crisis,
foreign investors began making their
way back to the local equities market.
Foreign investors were net buyers for
the year in the amount of P14.92 billion,
a significant turnaround from the P22.16
billion net foreign selling figure recorded
the previous year. Total foreign buying
figures amounted to P329.28 billion,
while foreign selling transactions came
in at P314.37 billion. The share of foreign
investor trades to total market trades,
which went down to 32.37 percent from
48.71 percent, reflected the apprehension
of foreign investors in emerging markets
but also highlighted the improved
participation of local investors in the
market.
Market Capitalization
Domestic market capitalization at the
close of the year bounced back in
record fashion from last year’s decline
as it went up by 61.35 percent to P3.99
trillion, its highest recorded growth. Total
market capitalization, which includes
foreign corporations Manulife Financial
Corporation (MFC) and Sun Life Financial
Inc. (SLF), also improved by 48.16 percent
to P6.03 trillion from P4.07 trillion in 2008.
The financials sector had the biggest share
of total market capitalization, accounting
for 43.2 percent of the aggregate value
as it finished the year with a market
capitalization of P2.60 trillion.
Performance
of Sector Indices
All PSE sector indices registered gains in 2009, showing their
resiliency after the previous year’s setback. The mining and oil
sector had the largest turnaround, surging by 234.1 percent. This
was followed by the industrial sector, which improved by 115.7
percent; holding firms sector, by 79.6 percent; property sector,
by 72.6 percent; financials sector, by 46.6 percent, and services
sector, by 31.9 percent.
Table 3. Annual Growth Rate of Sector Indices
Index 2008 2009 % change
All Shares 1,196.99 1,918.64 60.3
Financials 456.89 669.97 46.6
Industrial 2,145.65 4,628.69 115.7
Holding Firms 897.45 1,611.52 79.6
Property 623.77 1,076.32 72.6
Services 1,143.59 1,508.92 31.9
Mining and Oil 3,221.55 10,762.84 234.1

Table 4. Domestic Market Capitalization and Trading Value by Sector (in Php billion)

Market Capitalization Value Traded

2008 2009 % change % share 2008 2009 % change % share
Financials Sector 405.66 566.45 39.6 14.2 92.46 79.24 -14.3 8.0
Banks 372.11 521.88 40.2 13.1 87.89 74.81 -14.9 7.5
Other Financial Institutions 33.93 44.85 32.2 1.1 4.57 4.43 -3.0 0.4

Industrial Sector 631.74 1,109.75 75.7 27.8 240.02 453.61 89.0 45.6
Electricity, Energy, Power & Water 229.12 552.46 141.1 13.8 167.94 179.72 7.0 18.1

Annual Report 2009

Food, Beverage & Tobacco 355.04 459.92 29.5 11.5 63.11 266.78 322.7 26.8
Construction, Infrastructure & Allied Services 29.26 67.65 131.2 1.7 7.04 3.80 -46.1 0.4
Chemicals 10.26 12.09 17.8 0.3 0.73 0.44 -39.8 0.0
Diversified Industrials 8.07 17.64 118.5 0.4 1.20 2.87 139.1 0.3

Holding Firms Sector 326.04 632.02 93.9 15.8 85.63 112.09 30.9 11.3
11

The Philippine Stock Exchange, Inc.

Property Sector 319.22 499.48 56.5 12.5 104.10 105.23 1.1 10.6

Services Sector 738.51 996.67 35.0 25.0 196.85 161.35 -18.0 16.2
Media 22.93 50.62 120.8 1.3 6.26 4.90 -21.8 0.5
Telecommunications 590.04 726.58 23.1 18.2 151.33 124.18 -17.9 12.5
Information Technology 11.18 39.57 254.0 1.0 3.15 14.51 360.6 1.5
Transportation Services 72.37 120.11 66.0 3.0 21.62 8.57 -60.3 0.9
Hotel & Leisure 8.20 8.34 1.7 0.2 3.07 1.75 -43.0 0.2
Education 10.49 13.24 26.2 0.3 0.29 0.49 70.1 0.0
Diversified Services 25.15 38.21 51.9 1.0 11.13 6.95 -37.6 0.7

Mining and Oil Sector 50.65 187.23 269.6 4.7 44.84 82.62 84.3 8.3
Mining 39.74 151.46 281.1 3.8 41.89 81.39 94.3 8.2
Oil 10.91 35.77 227.8 0.9 2.95 1.23 -58.1 0.1

SME 2.23 0.34 -84.9 0.0 0.01 0.02 42.4 0.0

Total Domestic Issues 2,474.05 3,991.93 61.4 100.0 763.65 994.07 30.2 100.0

Domestic Issues 2,474.05 3,991.93 61.4 100.0 763.65 994.07 30.2 100.0
Foreign Issues 1,595.17 2,037.15 27.7 51.0 0.25 0.08 -67.6 0.0
Total Market 4,069.23 6,029.08 48.2 151.0 763.90 994.15 30.1 100.0
 Table 6. Top 25 Companies by Value Traded (Regular Market)
Rank Company Name Code Value Traded (in Php)
1 Philippine Long Distance Telephone Company “Common” TEL 84,972,416,550
2 Manila Electric Company MER 42,466,458,940
3 Philex Mining Corporation PX 39,239,898,335
4 Energy Development (EDC) Corporation EDC 37,238,673,520
5 Megaworld Corporation MEG 28,517,162,670
6 Ayala Corporation AC 24,892,336,475
7 Ayala Land, Inc. ALI 24,872,215,100
8 SM Investments Corporation SM 22,508,203,575
9 Bank of the Philippine Islands BPI 20,144,991,950
10 Metropolitan Bank & Trust Company MBT 20,108,279,150
The Philippine Stock Exchange, Inc.

11 Globe Telecom, Inc. GLO 20,006,233,500

Table 5. 2009 Market Activity
Sector No. of Issues Actively Traded Gainers Losers Unchanged
Financials 35 30 25 4 1
Industrial 76 57 49 7 1
Holding Firms 47 41 35 5 1
Property 44 37 29 9 0
Services 89 68 38 13 17
12
Mining & Oil 30 30 29 1 0
SME 2 2 0 1 0
Annual Report 2009
12 First Philippine Holdings Corporation FPH 17,933,246,875
13 Filinvest Land, Inc. FLI 14,482,380,850
14 Manila Water Company, Inc. MWC 14,412,737,650
15 Alliance Global Group, Inc. AGI 13,722,330,400
16 Banco de Oro Unibank, Inc. BDO 13,317,309,950
17 First Gen Corporation FGEN 13,242,079,150
18 SM Prime Holdings, Inc. SMPH 12,870,169,500
19 Benpres Holdings Corporation BPC 10,874,497,650
20 Century Peak Metals Holdings Corporation CPM 10,764,460,650
21 Robinsons Land Corporation RLC 10,534,790,315
22 PhilWeb Corporation WEB 10,010,379,225
23 Aboitiz Power Corporation AP 9,562,410,750
24 Metro Pacific Investments Corporation MPI 9,072,838,850

Total Number of Issues 318 265 205 40 20 25 International Container Terminal Services, Inc. ICT 8,344,477,375

Table 7. PSEi Recomposition

Results of Recomposition
As of May 4, 2009 As of November 3, 2009
1 ABS-CBN Broadcasting Corporation 1 Ayala Corporation
2 Ayala Corporation 2 Aboitiz Equity Ventures, Inc.
3 Aboitiz Equity Ventures, Inc. 3 Alliance Global Group, Inc.
4 Alliance Global Group, Inc. 4 Ayala Land, Inc.
5 Ayala Land, Inc. 5 Aboitiz Power Corporation
6 Aboitiz Power Corporation 6 Banco de Oro Unibank, Inc.
7 Banco de Oro Unibank, Inc. 7 Bank of the Philippine Islands
8 Bank of the Philippine Islands 8 DMCI Holdings, Inc.
9 Energy Development (EDC) Corporation 9 Energy Development (EDC) Corporation
10 First Gen Corporation 10 First Gen Corporation
11 Filinvest Land, Inc. 11 Filinvest Land, Inc.
12 First Philippine Holdings Corporation 12 First Philippine Holdings Corporation
13 Globe Telecom, Inc. 13 Globe Telecom, Inc.
14 GMA Network, Inc. 14 GMA Network, Inc.
15 International Container Terminal Services, Inc. 15 International Container Terminal Services, Inc.
16 Jollibee Foods Corporation 16 Jollibee Foods Corporation
17 Lepanto Consolidated Mining Company 17 Lepanto Consolidated Mining Company
18 Metropolitan Bank & Trust Company 18 Metropolitan Bank & Trust Company
19 Megaworld Corporation 19 Megaworld Corporation
20 Manila Electric Company 20 Manila Electric Company
21 Manila Water Company, Inc. 21 Manila Water Company, Inc.
22 Philex Mining Corporation 22 The Philippine Stock Exchange, Inc.
23 Rizal Commercial Banking Corporation 23 Philex Mining Corporation
24 Robinsons Land Corporation 24 Robinsons Land Corporation
25 SM Investments Corporation 25 Security Bank Corporation
26 San Miguel Corporation 26 SM Investments Corporation
27 SM Prime Holdings, Inc. 27 San Miguel Corporation
28 Philippine Long Distance Telephone Company “Common” 28 SM Prime Holdings, Inc.
29 Universal Robina Corporation 29 Philippine Long Distance Telephone Company “Common”
30 Vista Land & Lifescapes, Inc. 30 Universal Robina Corporation
Table 8. Top 25 Price Gainers
(in Php) (in Php)
Rank Issue Code 2009 Close 2008 Close % change
1 Atok-Big Wedge Company, Inc. “A” AB 101.00 2.10 4,709.52
2 Macondray Plastics, Inc. MRAY 58.50 2.50 2,240.00
3 Liberty Telecoms Holdings, Inc. LIB 2.70 0.2000 1,250.00
4 Atok-Big Wedge Company, Inc. “B” ABB 102.00 10.00 920.00
5 PhilWeb Corporation WEB 18.50 2.80 560.71
6 PNOC Exploration Corporation “A” PEC 13.50 2.24 502.68
7 Paxys, Inc. PAX 2.80 0.50 460.00
8 Prime Media Holdings, Inc. PRIM 1.50 0.30 400.00
9 Alsons Consolidated Resources, Inc. ACR 1.22 0.25 388.00
10 NiHAO Mineral Resources International, Inc. NI 4.25 0.90 373.82
11 Federal Resources Investment Group, Inc. FED 11.00 2.50 340.00
12 Century Peak Metals Holdings Corporation CPM 6.50 1.50 333.33
13 Lepanto Consolidated Mining Company “A” LC 0.26 0.0600 333.33
14 Philex Mining Corporation PX 16.00 3.92 308.16
15 Active Alliance, Inc. AAI 12.00 3.00 300.00
16 Manila Mining Corporation “A” MA 0.0260 0.0065 300.00
17 Manila Mining Corporation “B” MAB 0.0260 0.0065 300.00
18 JG Summit Holdings, Inc. JGS 6.60 1.70 288.24
19 Philippine Seven Corporation “Common” SEVN 7.00 1.82 285.00
20 Central Azucarera de Tarlac, Inc. CAT 11.00 2.95 272.88
21 DMCI Holdings, Inc. DMC 9.70 2.65 266.04

Annual Report 2009

22 Philippine Realty & Holdings Corporation RLT 0.74 0.2050 260.98
23 Benpres Holdings Corporation BPC 3.50 0.97 260.82
24 MRC Allied Industries, Inc. MRC 0.36 0.1000 260.00
25 Prime Gaming Philippines, Inc. PGPI 27.00 7.50 260.00

Table 9. Top 25 Price Losers

13
(in Php) (in Php)

The Philippine Stock Exchange, Inc.

Rank Issue Code 2009 Close 2008 Close % change
1 Forum Pacific, Inc. FPI 0.1000 0.26 -61.54
2 Acesite (Philippines) Hotel Corporation DHC 3.70 9.60 -61.46
3 Premiere Entertainment Philippines, Inc. PEP 0.36 0.72 -50.00
4 Arthaland Corporation ALCO 0.1600 0.27 -40.74
5 Supercity Realty Development Corporation SRDC 0.80 1.32 -39.39
6 Aboitiz Transport System (ATSC) Corporation - Preferred ATSP 1.24 2.00 -38.00
7 EasyCall Communications Philippines, Inc. ECP 2.20 3.50 -37.14
8 Information Capital Technology Ventures, Inc. ICTV 0.90 1.40 -35.71
9 Roxas & Company, Inc. RCI 1.80 2.75 -34.55
10 Wellex Industries, Inc. WIN 0.1000 0.1450 -31.03
11 Philippine Estates Corporation PHES 0.1050 0.1500 -30.00
12 Aboitiz Transport System (ATSC) Corporation ATS 1.18 1.64 -28.05
13 Makati Finance Corporation MFIN 1.44 1.99 -27.69
14 Omico Corporation - Warrants OMW2 0.0030 0.0040 -25.00
15 Primex Corporation PRMX 3.25 4.20 -22.62
16 Imperial Resources, Inc. “A” IMP 9.00 11.50 -21.74
17 Polar Property Holdings Corporation PO 2.50 3.10 -19.35
18 Chinatrust (Philippines) Commercial Bank Corporation CHTR 25.00 30.00 -16.67
19 Uniwide Holdings, Inc. UW 0.1000 0.1200 -16.67
20 First Metro Investment Corporation FMIC 28.50 34.00 -16.18
21 Ripple E-Business International, Inc. RPL 3.80 4.50 -15.56
22 City & Land Developers, Inc. LAND 1.40 1.63 -14.29
23 MacroAsia Corporation MAC 3.00 3.50 -14.29
24 Bogo-Medellin Milling Company, Inc. BMM 32.00 37.00 -13.51
25 F & J Prince Holdings Corporation “A” FJP 1.08 1.22 -11.48
 Table 10. Top 25 Companies by Trading Frequency (Regular Market)

Rank Company Name Code Trading Frequency (No. of Trades)

1 Megaworld Corporation MEG 108,766
2 Manila Electric Company MER 100,669
3 Energy Development (EDC) Corporation EDC 78,599
4 Philex Mining Corporation PX 67,265
5 Filinvest Land, Inc. FLI 58,820
6 First Gen Corporation FGEN 56,535
7 Paxys, Inc. PAX 48,918
8 First Philippine Holdings Corporation FPH 47,737
9 Benpres Holdings Corporation BPC 47,386
The Philippine Stock Exchange, Inc.

10 Philippine Long Distance Telephone Company “Common” TEL 46,508

11 Metro Pacific Investments Corporation MPI 44,615
12 Ayala Corporation AC 43,907
13 Ayala Land, Inc. ALI 42,796
14 NiHAO Mineral Resources International, Inc. NI 41,997
15 PhilWeb Corporation WEB 36,893
16 Alliance Global Group, Inc. AGI 35,649
17 GEOGRACE Resources Philippines, Inc. GEO 35,440
18 Metropolitan Bank & Trust Company MBT 32,175
19 Lepanto Consolidated Mining Company LC 31,265
20 Century Peak Metals Holdings Corporation CPM 31,062
14
21 Globe Telecom, Inc. GLO 30,466
22 Bank of the Philippine Islands BPI 29,668
Annual Report 2009

23 Manila Water Company, Inc. MWC 28,599

24 Philippine National Bank PNB 25,968
25 Vista Land & Lifescapes, Inc. VLL 25,359

Table 11. Top 25 Companies by Market Capitalization (Common Shares)

Rank Company Name Code Market Capitalization (in Php)

1 Manulife Financial Corporation MFC 1,350,897,726,640.00
2 Sun Life Financial Inc. SLF 686,250,261,080.00
3 Philippine Long Distance Telephone Company “Common” TEL 489,408,936,480.00
4 Manila Electric Company MER 231,110,592,315.00
5 SM Investments Corporation SM 198,582,487,350.00
6 San Miguel Corporation SMC 157,217,083,037.50
7 Bank of the Philippine Islands BPI 155,844,237,744.00
8 Ayala Corporation AC 150,745,256,970.00
9 San Miguel Brewery, Inc. SMB 149,481,645,912.00
10 Ayala Land, Inc. AL 145,833,777,461.25
11 SM Prime Holdings, Inc. SMPH 130,627,476,816.20
12 Globe Telecom, Inc. GLO 121,096,219,425.00
13 Pilipino Telephone Corporation PLT 98,151,651,822.00
14 Banco de Oro Unibank, Inc. BDO 91,250,971,890.00
15 Energy Development (EDC) Corporation EDC 88,125,000,000.00
16 Metropolitan Bank & Trust Company MBT 81,327,120,750.00
17 Philex Mining Corporation PX 78,403,327,376.00
18 Aboitiz Power Corporation AP 63,283,997,040.20
19 Jollibee Foods Corporation JFC 56,815,083,545.00
20 Metro Pacific Investments Corporation MPI 50,585,664,838.80
21 Aboitiz Equity Ventures, Inc. AEV 49,696,846,389.00
22 Petron Corporation PCOR 49,688,053,834.10
23 Philippine Trust Company PTC 45,240,000,000.00
24 JG Summit Holdings, Inc. JGS 44,861,464,936.20
25 International Container Terminal Services, Inc. ICT 43,288,545,600.00
Revised Rules on
Listing by Way
of Introduction
On September 26, 2008, the Exchange
obtained the approval of the Securities
and Exchange Commission (SEC) for the
amended listing rule allowing the listing
by way of introduction of corporations
mandated by law to publicly offer their
securities. The amended listing rule would
encourage these corporations, particular-
ly the entities registered with the Board of
Investments and the Philippine Economic
Zone Authority as well as congressional
franchise grantees, to list their securities
on the Exchange. The amended rule took
effect on April 6, 2009.
A company listed by way of introduction
need not raise capital upon listing.
However, under the revised rule, if the
company is legally mandated to publicly
offer its securities, the Exchange requires
the company to conduct the public
offering of its securities and attain the
required minimum public ownership
within one year from its listing. The
Exchange may extend the one-year
period upon request by the company at
least 60 calendar days prior to the lapse of
the one-year period. The company must
secure from the relevant government
agency a clearance for its listing by way
of introduction. The company must also
submit proof that it is not considered a
“closely-held corporation” as such term
is defined under Section 127 (B) of the
National Internal Revenue Code of 1997.
If the company fails to publicly offer its
securities within the prescribed period,
the Exchange may (a) suspend the trading
of the company’s securities, (b) double its
annual listing maintenance fees or impose
such other sanctions as the Exchange may
see fit, and/or (c) require it to buy back its
securities and delist the company.
Revised Rule
on Lodgment
of Securities
The SEC approved on February 26, 2009,
the amendments to the requirements on
lodgment of securities under section 16,
Part A, Article III of the Revised Listing Rules
(the “Rules”). The amendments are in line
with the Capital Market Development Plan
of the Philippines and the international
best practices on the issuance and transfer
of securities. The Rules are applicable
to applicant companies for initial listing
starting July 1, 2009. For existing listed
companies, the Rules shall apply starting
July 1, 2010.
The Rules provide that as a condition for the
listing and trading of the securities of an
applicant company, the applicant company
shall electronically lodge its registered
securities with the Philippine Depository
Annual Report 2009
and Trust Corporation (PDTC), or any
other entity duly authorized by the SEC,
without any jumbo or mother certificate
in compliance with the requirements of
Section 43 of the Securities Regulation
Code.
15
Revised Listing
The Philippine Stock Exchange, Inc.
Agreement
The PSE Board, in its regular meeting on
March 11, 2009, approved the revised Listing
Agreement (the “Agreement”). The changes
to the existing listing agreement aim to
address the regulatory issues encountered
by the Exchange. More importantly, the
objective behind the changes is for the
Exchange, as a self-regulatory organization,
to maintain and preserve an efficient, fair
and orderly market for the protection of the
public interest.
 PSE makes significant inroads in
market education; inks strategic
partnerships
E - Expand and educate the investor base
The Philippine Stock Exchange, Inc.

Market Education Figure 2. Reach of OF Campaign and Target Sector Program

8,730
10,925
The Exchange’s market education activities showed a marked
increase in 2009, with a total of 337 market education events and 14,176
projects. By harnessing limited manpower, minimal resources
and capitalizing primarily on partnerships with “multiplier”
3,535
organizations, the Exchange directly reached 31 percent more 10,12 8
12,099
individuals comparing 2009 with 2008, where records show
coverage of 33,831 and 25,762 respectively based on event 900
registration sheets. The chart (see figure no. 2) shows that more 8,000
8,496
professionals and overseas Filipinos (OF) were reached in 2009
16 due to an enhanced OF campaign and target sector program.
371
5,816
6,188
Annual Report 2009

Integration of Capital 270 154

Markets Topics in High
265 248
1,325 203 192 1,348 2,415
1,238
3,710 115 125 127 153 1,013 959 3,775 2,569 3,465
School Curriculum
96
75 575 481 625 635 764 2,836 2,686
375 1,610 1,348 1,750 1,779 2,138
The Exchange signed in January a Memorandum of Agreement 1,050
(MOA) with the Department of Education which paved the way
for the successful integration of a capital markets segment in the
2000

2004

2008
2006

2009
2005
2003
2002

2007
1994

1998
1996

1999
1995

2001
1997

high school curriculum, particularly in the 4th year economics

subject. OFs
Professionals/Businessmen/Market Participants
A successful pilot testing ensued on November 9, 2009 in Rizal
Students/Academe
High School in Pasig City, the biggest public high school in the
Philippines.
Institutionalization of “Savings
After another pilot testing in a private high school and minimal & Investments” Subject in
revisions to a “Teacher’s Guide” completed in September, College General Education
the enhanced 4th year economics subject will be ready for The Exchange laid the groundwork to institutionalize a “Savings
implementation and may already form part of the secondary and Investments” subject in the college general education in
school curriculum by school year 2010-2011. This program will 2009. A course outline is being drafted by the Exchange with the
target 10,066 public (5,359) and private (4,707) high schools Bangko Sentral ng Pilipinas (BSP) and the Bankers’ Association of
nationwide or approximately 6.76 million (5.42 million public and the Philippines which shall be presented to the Commission on
1.34 million private) students. Higher Education (CHED) in 2010.

The Exchange and the Department of Education sign a Memorandum of Agreement

for the integration of a capital markets topics in the high school curriculum.
Implementation of CMO 39
The Exchange continued to implement CHED Memorandum
Order (CMO) 39 which institutionalized a revitalized business
administration curriculum that includes a “Capital Markets” subject
for all financial management students and a “Basic Finance” subject,
which has ample discussions about the stock market for business
administration students.

To ensure its successful implementation, the Exchange and CHED

conducted monitoring and consultation visits in 15 universities and
colleges nationwide in 2009.

Faculty development is also a big component of this program.

A summit conference for some 200 finance faculty from various
universities and colleges was jointly organized by the Exchange,
CHED and the Business Education Industry Linkage, an assemblage
of 12 professional and academic organizations, in the country,
on February 12, 2009 at the AIM Conference Center. The summit
aimed to conduct workshops, distribute instructional materials PSE issues promotional materials for the Certified Securities Specialist Course.
and provide useful information in support of the implementation
of the capital markets subject. Incidentally, a reference textbook is
also being developed by the University of the Philippines College The Exchange has completed three runs of the PSE CSSC in 2009
of Business Administration under a donation agreement with the plus one batch ongoing until 2010. A total of 86 professionals and
Exchange. fresh graduates enrolled. Below is the breakdown:

Annual Report 2009

Institutionalization of MBA
Specializing in Capital Markets
The Exchange likewise explored the possibility of introducing
an MBA program which will put emphasis on capital markets by
initiating a survey to ascertain the appetite for such a program
among market participants. A concept paper was then put together
by the Exchange and the Lyceum of the Philippines University –
1. Ateneo Center for Continuing Education (CCE) 2nd Batch
(April to August) – 32 students;
2. Ateneo CCE 3rd Batch (August to December) – 21 students;
3. Global City Innovative College (GCIC) 2nd Batch
(March to August) – 15 students; and
4. iAcademy 2nd Batch (November 2009 to March 2010)
– 18 students
17
Continuous course improvements have been undertaken jointly

The Philippine Stock Exchange, Inc.

Manila, Graduate School of Business in September 2009 proposing
an MBA with a 48-unit course conducted on weekends, to be
completed within three or four trimesters. The program is proposed
to give special credits to market participants with a considerable
number of working years in the stock market and also to graduates
of the PSE Certified Securities Specialist Course (CSSC). The
proposed venue for classes is the Lyceum campus in Makati City.
The program is targeted for pilot testing in 2010.
PSE Certified Securities
by the PSE and Ateneo CCE such as the installation of a fully
automated testing center. This new facility allows the build-up
of an extensive test bank, efficient and quick publication of test
results, and a standard method of administering certification
exams for the course.
On February 6, 2009, the PSE and Ateneo CCE likewise completed a
curriculum review that aims to calibrate course modules to the ideal
competencies of a successful graduate. The improved curriculum
now includes additional course segments and hours and student
activities such as on-site brokerage visits and observation sessions,

Specialist Course and New Trading System seminars.

The PSE CSSC is envisioned to provide continuing education for

market participants. Launched in December 2006, the PSE CSSC
is a 124-hour certification course on financial market theories,
valuation techniques, analysis, management, ethics, regulations,
and market dynamics. It was developed by the Exchange and a
team of academicians and market practitioners.
The PSE CSSC is comprised of 12 modules (with two pre-requisite
subjects) and covers an intensive learning process to ensure
the participant’s understanding and appreciation of the course.
Academic performance is measured through written examinations.
Continuous expansion of faculty pool and partnerships with
technology and information providers Thomson Reuters,
Bloomberg, and Technistock were also pursued to further enhance
the course.
Partnerships with other top universities and colleges such as
the University of the Philippines, De La Salle University and the
University of Asia and the Pacific are being pursued. Corporate
and provincial runs with top private corporations and government
financial institutions are also part of the future plans for this
program.
 Overseas Filipino Program
The Exchange conducted the following seminars for land-based
workers, seafarers, and their Philippine-based beneficiaries as it
stepped up its campaign for OF workers:
1. PSE-Smartlink Regional Maritime Symposium on March 12,
2009 at the Cuneta Astrodome (7,000 participants)
2. Briefing for Alberta (Canada) Energy Manpower Agency on 27
May 22, 2009 at PSE Ayala
3. The PSE-BSP Financial Literacy Campaign on July 1, 2009 at
BSP Complex (80 participants)
The Philippine Stock Exchange, Inc.
The PSE with The Philippine Council of Economic Students and The Junior
Philippine Economics Society hold the First Capital Markets Quiz Competition.
4. PSE-Smartlink Love Ko Si Misis Super Caravan on:
18 a. August 8, 2009 in Stolt Nielsen Makati Office (150 participants)
b. September 19, 2009 in Philippine Transmaritime Corp.
Annual Report 2009
(PTC) Makati Office (200 participants)
c. September 26, 2009 in Cavite (100 participants)
d. October 10, 2009 in Intramuros Manila (300 participants)
e. November 21, 2009 in Cebu City (200 participants)
5. PSE-Smartlink-PTC Future seafarers, cadets, midshipmen in
the cities of Surigao del Norte, Agusan del Sur, and Misamis
Oriental on August 25-27, 2009 (600 participants)
Promotional Competitions:
National Economics & Capital Markets
Quiz Competition
The Exchange also conducted the first ever nationwide Economics
& Capital Markets Quiz Competition on December 4, 2009 at the
PSE Centre Trading Floor in Tektite Towers, Pasig City, with 20
university- and college-based economics and finance student
organizations from all over the Philippines participating. The
quiz contest was jointly undertaken with partner institutions
such as the Philippine Council of Economics Students, the Junior
Philippine Economics Society and the National Broadcasting
Network (NBN 4).
The first prize went to the De La Salle University Economics
Organization Team while the second and third prizes went
to the University of the Philippines (UP) Economics Towards
Consciousness Team and the UP Economics Society Team,
respectively.
Stock Trading Tournaments
Stock Trading Tournaments (STT) are three- to six-month long
individual or team competitions open to all students of state
universities and colleges, private higher education institutions
and local universities and colleges and other organizations or
institutions operating in the Philippines. It aimed to provide
participants with hands-on experience in stock trading where
they may apply financial theories, practice investment strategies,
learn about the various markets, valuation techniques and
adherence to trading rules among others.
Figure 3. Stock Trading Tournament Participation
2240 2250
31
1620
1515
1230
14
875 15
12
800
700
650
9 500
420
300
0 1
2003 2004 2005 2006 2007 2008 2009
A total of 28 STTs were launched in 2009, involving over 1,434
participants in the minor competitions. A nationwide tournament
was also launched jointly with the Manila Times on May 21, 2009
entitled “The PSE-Manila Times Equity Challenge,” which drew
650 participants.
Another major tournament was the PSE-Philippine Daily Inquirer
Market Rider Challenge, which mustered 120 participants.
The “PSE-CitisecOnline MBA Challenge,” which was open only
to current master of business administration students from
various colleges and universities nationwide, was another major
tournament. This contest drew 46 participants.
Best Thesis Competition
The Best Thesis Competition was likewise launched on December
4, 2009 in partnership with the Philippine Association of Collegiate
Schools of Business (PACSB), Council of Economics Educators,
and the Philippine Council of Deans and Educators in Business
(PCDEB). The contest aimed to recognize theses written by
college students and in due course encourage them to conduct
more research and studies about the capital markets.
Best Business Plan Competition
On June 15, 2009, the Exchange conducted the Best Business Plan
Competition in partnership with the Junior Chamber International
Manila. The business plan, written by business, science and design
majors from the Ateneo de Manila University under “FibreTech
Inc.”, clinched the first prize due to its proposed “green building
materials” that discusses the development of cement fiber boards
out of plant fiber. The business plan found an opportunity to
address the growing housing needs of the urban population in the
country and the problem of deforestation caused by the demand
for construction wood through the development of a “zero wood”
material—cement fiber boards made of dayami or rice stalks. By
forging winning partnerships with local government units and
rice farmers, FibreTech Inc. wishes to achieve sustainable urban
housing and forestry development in the Philippines by building
stable homes for the Filipinos through agro-waste innovation.
The contest aimed to recognize outstanding business plans
written by college students and young entrepreneurs and also
encourage them to include capital markets investments and
capital-raising as part of their corporate financial planning.
Impact Seminars:
Short Course on Stock
Market Investing
The Exchange conducted a nine-hour intensive short course in
partnership with GCIC on June 15-18, 2009. About 15 prospective
investors enrolled. A short course primer was likewise conducted
exclusively for Economics students of the University of Santo
Tomas College of Commerce on September 22, 2009 with around
200 students in attendance.
Joint Projects with Trading
Participants & Interest Groups
A total of 19 seminars were successfully conducted by the Exchange
in partnership with various market related organizations such as the:
1. Absolute Traders, January 15
2. Analysts-Equities Traders; Training Center, January 27; January 28;
January 29; September 23; December 7; December 14
3. Association of Securities Analysts of the Philippines
4. Capital Markets Institute of the Philippines, May 26 - 29
5. CFA Society of the Philippines, July 9; September 11; October 7
6. Council of Economics Educators, November 19
7. Tsupitero.com, June 30 and July 1 - 2
8. Unionbank, May 12
9. World Events, March 19 – 20
Seminars for Local Institutions
Aside from retail accounts, the Exchange also carried out a program
specifically meant for local institutions with investible funds. The
following seminars were conducted:
1. GSIS Investment Group on January 29, 2009 (20 participants)
2. Metro Manila cooperatives on May 26, 2009 (40 Metro Manila-
based cooperatives)
3. Luzon-based microfinance institutions on August 20, 2009 (20
institutions)
4. Carmelites on November 6, 2009 (11 participants)
Local Roadshows
For 2009, the Exchange conducted four major local roadshows,
which involved more than 500 participants broken down as follows:
1. Laguna Roadshow on March 27, 2009 at El Cielito Inn, Sta.
Rosa (120 participants)
2. Cebu Roadshow on June 22, 2009 at the Waterfront Hotel in
Cebu City (100 participants)
3. Tarlac Roadshow on September 1, 2009 at La Majarica Hotel
(200 participants)
4. Baguio Roadshow on September 3, 2009 at City Travel Hotel
(75 participants)

Annual Report 2009

10. The Mutual Fund Management Company of the Philippines,
February 25
The seminars were attended by high net worth individuals and
11. The Pinnacle Group, March 10 and March 11
businessmen. The Exchange partnered with Ferrier Hodgson,
The PSE Foundation and the Philippine Daily Inquirer for these
These various events and seminars were attended by 1,087
roadshows. Trading participants with branch offices in roadshow
prospective investors.
destinations also conducted marketing activities and consultations
sessions with prospective investors during the roadshows.
Special Seminars for Target Sectors
19
Targeting specific investor grade professionals, stock market
Industry Briefings

The Philippine Stock Exchange, Inc.

seminars were also conducted by the Exchange for the following:
Quarterly briefings were also conducted for four different
1. Philippine Navy Officers on June 5 and November 10, 2009 (30 industries:
and 20 participants respectively)
2. Call Center Professionals of StarTek on July 28, 2009 (25 1. Export Industry Briefing, March 26, 2009
participants) 2. Media Industry Briefing, June 25, 2009
3. Members of the Chamber of Real Estate Brokers & Agents on 3. International Accounting Standards and Accounting Industry
August 8, 2009 (50 participants) Briefing, September 29, 2009
4. IT engineers of Hewlett-Packard on August 12, 2009 (25 4. Insurance Industry Briefing, November 26, 2009
participants)
5. Lawyers on November 4, 2009 (20 participants)
All briefings were conducted at the PSE Tektite trading floor with a
6. Presidential Security Group officers on December 8, 2009 (25
total attendance of 493 market participants.
participants)
7. Insurance agents of Manulife on April 7 and August 12, 2009
(60 participants)
8. Insurance agents of Sun Life on May 8, 2009 (15 participantts)
9. Insurance agents of Philam Life on August 18, 2009 (40
participants)
10. Financial consultants (members of International Association of
Registered Financial Consultants) on March 4, 11, 18, and 25,
2009 (25 participants)
11. Members of the Junior Chamber International-Manila on
October 24, 2009 (200 participants)
12. Quezon City Rotary Clubs on December 10, 2009 (13
participants)

PSE-BSP hold Mid Year Economic Briefing.

 PSE Bull Run ‘09
The PSE Bull Run is an annual fun run to promote both health
and stock market consciousness among Filipinos. The event
draws thousands of running enthusiasts, sports celebrities, and
prominent personalities from government, and the diplomatic
and business communities.
The Philippine Stock Exchange, Inc.
The PSE kicks off its Bull Run: Takbo Para sa Ekonomiya.
20 The annual run was held last January 18, 2009 with about
4,700 registered runners. The huge turnout of participants,
Annual Report 2009
notwithstanding the thousands of runners, accounted for a 17.5
percent increase from the previous year’s Bull Run.
Exchange Tours
Tours of the Exchange premises in Tektite and Ayala were conducted
for about 190 groups ranging from foreign and local colleges,
universities, corporations, institutions and other organizations.
PSE-COL launch the joint investor primer.
PSE-COL Investor Primer
The Exchange successfully launched the PSE Primer entitled,
“Building Wealth with Stocks: A Basic Guide to Investing in the
Philippine Stock Market” on December 4, 2009. The primer, which
was developed in partnership with CitisecOnline.com, Inc. (COL),
contains topics on how to invest in the stock market, investor
rights, and guidelines.
Marketing Services
The Exchange signed a Memorandum of Agreement (MOA) on
April 29, 2009 with the Philippine government’s television station,
the National Broadcasting Network of the People’s Television
Network, Inc. (NBN 4) to promote the Exchange’s initiatives
and to disseminate information about the stock market to the
investing public. The MOA allowed NBN 4 to show the PSE’s real-
time ticker tape daily and to feature key PSE activities thrice a
week (ex-weekend) from 11 AM to 12 noon on the television
show “Money Matters” in a five minute segment called the “PSE
Report.” Among the key topics that have been shown in the
segments were: “Why Do Private Companies Go Public?” ; “What
Are the Advantages of Going Public?” ; “The Responsibilities
of Publicly Listed Firms” ; “What is an Initial Public Offering?” ;
“Listing By Way of Introduction” ; “Disclosure Rules (4-Part Series)”;
“The Philippine Stock Exchange (5 Part Series)” ; and interviews
with the CEOs and chairpersons of publicly listed firms as well as
Exchange roadshows and seminars.
NBN4 officials ring the opening bell prior to the MOA Signing with the PSE.
By the end of 2009, the Exchange successfully held joint forums
with the Business Processing Association of the Philippines
(BPAP); Bacolod Business Club; Cebu Business Club; Cebu
Furniture Industries Foundation, Inc.; Chamber of Mines of the
Philippines (COMP); Federation of Filipino-Chinese Chambers of
Commerce and Industry (FFCCCI); Financial Executives Institute
of the Philippines (FINEX); GenSan Chamber of Commerce and
Industries; Iloilo Business Club (IBC); Oro Chamber; and the
Investment Houses Association of the Philippines.
The following seminars, forums and briefings were conducted by
the Exchange with regards to listing and going public:
Board of Investments,
Department of Trade and Industry
• June 25, 2009, “BOARD OF INVESTMENTS ORIENTATION SEMINAR”
This provided a firsthand glimpse of a rich reservoir of
candidates for eventual public listing.
Cebu Furniture Industry Foundation, Inc.
• July 29, 2009, “ALTERNATIVE FUNDING - FINANCING THROUGH
THE EQUITIES MARKET”
This is the first of a series of forums to be conducted with the
Cebu Furniture Industry Foundation, Inc. The seminar created
the needed awareness and understanding that funds could be
raised through the Exchange so that this particular export sector
need not rely on the traditional method of financing, such as
borrowing funds from the banks.

PSE partners with the Federation of Filipino-Chinese Chamber of

Commerce and Industry, Inc. for an economic forum.

Albay, the Hon. Jose Salceda, the Hon. Economic Counsellor Wu

Zheng Ping of the Embassy of the People’s Republic of China,
and First Metro Investment Corporation President Francisco
Sebastian as speakers, addressed the issues and concerns of
the Filipino-Chinese business community brought about by the
global financial crisis.

Philippine Stock Exchange, Inc.

• April 17, 2009, “STAYING AHEAD OF THE MARKET”
The talk allowed PSE officers and staff to gain knowledge on
trend watching, understanding financial markets, fundamental
analysis, technical analysis 101 and the current economic picture.

Annual Report 2009

Atty. Francis Lim receives a plaque of appreciation from the Cebu
Furniture Industry Foundation, Inc. on behalf of the PSE.
Chamber of Mines of the Philippines
• January 20-21, 2009, “FORWARD THINKING: FUNDING AND
FINANCING OPTIONS DURING CHALLENGING TIMES”
Resource speakers from Deutsche Bank AG, Ernst & Young,
Hongkong Shanghai Banking Corporation, the International
Korea Exchange, Inc.
• December 10, 2009, “THE DERIVATIVES MARKET AND RISK
MANAGEMENT SYSTEMS FORUM”
The forum exposed key PSE officers and staff to derivatives,
particularly to the experience of the world’s number one
derivatives market, the Korea Exchange, Inc. 21
Listing Anniversaries

The Philippine Stock Exchange, Inc.

Finance Corporation, KPMG, Standard Chartered Bank, UBS
AG, West Landesbank, BDO Capital, First Metro Investment
Corporation, Philippine Export-Import Credit Agency (PhilEXIM),
Philex Mining Corporation, and Aon Risk Services were gathered
in a two-day forum that tackled points of interest of the mining
sector regarding financing, raising equity, commodity prices,
structured finance, hedging, sovereign guarantees, and re-
educating the local banks about the mining industry.
Two companies availed of the recognition and fanfare sponsored
by the Exchange on listing anniversaries, as companies adopted
a general austere attitude brought about by the recent financial
crisis. They were:
• PetroEnergy Resources Corporation’s 5th Listing Anniversary, August 6, 2009
• Manulife Financial Corporation’s 10th Listing Anniversary, October 1, 2009

• February 26-27, 2009, “BRIDGING THE KNOWLEDGE GAP BETWEEN

THE MINING INDUSTRY AND THE FINANCIAL SECTOR”
This forum continued the January undertaking. This time it was
the financial sector’s turn to learn from the mining sector and
led to the re-acquaintance, greater appreciation, and eventual
re-entry by the banks into the mining industry.

Federation of Filipino-Chinese Chambers

of Commerce and Industry, Inc.
• February 24, 2009, “OPPORTUNITIES DURING A CRISIS - AN
ECONOMIC FORUM”
The briefing, which counted Bangko Sentral ng Pilipinas Deputy
Governor Diwa Guinigundo, Economic Advisor and Governor of
Manulife Financial Corporation celebrates its 10th listing anniversary at PSE Ayala.
 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 Philippine Stock Exchange, Inc.
the PSE Weekly Market Watch and the PSE
Quarterly Top 50, 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, returns on assets and
equity, price performance, and other key
corporate financial information.
In 2009, the Exchange launched two new
22 reports that could be accessed free of
charge on the website: the “Stock Market
Annual Report 2009
Investor Profile” and the “PSE Quarterly
Dividend Report”.
Figure 4. Profile of Retail Investors by Income
Less Than
P500,000
64.7%
Stock Market
Investor Profile
The Stock Market Investor Profile, an
annual study introduced in 2008, was
further enhanced in 2009 to take a more
vivid snapshot of the type of investors
participating in the Philippine stock
market. Investor accounts are classified
into retail or institutional, and local or
foreign. The study also includes data on
online trading as well as profiles of online
and retail investors.
Based on 2008 data, the survey results
which were released in 2009 revealed that
there were 444,680 total client accounts,
up by 2.1 percent from the previous year’s
total of 435,394 accounts. Of the total
accounts, 95.7 percent or 425,479 were
considered retail accounts or individual
accounts while 4.3 percent or 19,201
were classified as institutional accounts
or accounts owned by corporations. Local
accounts comprised 99.0 percent of total
accounts at the Exchange. Meanwhile,
active accounts tallied at 98,039 or 22.0
percent of the total number of accounts,
which decreased by 6.9 percent from the
previous year’s total of 105,358 accounts.
The investor profile also provides more
in-depth information on online investors.
In 2008, the number of online trading
accounts increased by 8.5 percent. Of
the total 19,246 online accounts, 93.0
percent are active, much higher than the
18.8 percent ratio of active non-online
accounts to total non-online accounts.
Online accounts represent only 4.3
percent of total stock market accounts.
However, in terms of volume, online trades
accounted for almost 20.0 percent of the
total trades in the market.
P500,000 Above
to P1 million P1 million
15.1% 20.2%
The Exchange, with the cooperation of
the trading participants, also conducted
for the first time a retail investor survey.
The survey gathered information on the
gender, age group, income, profession,
and location of retail investors. The key
findings of the survey showed that in
terms of age, almost half or 43.3 percent
of investors were aged 45 to 59, while
investors aged 30 to 44 comprised 31.8
percent of retail investors. Based on
annual income, almost two-thirds of
investors earn less than P500,000 annually.
Those earning more than P1 million
and above comprised one-fifth of retail
investors, while those earning between
P500,000 and P1 million comprised 15.1
percent of retail investors. Professionals
and self-employed individuals comprised
36.4 percent and 34.8 percent of retail
investors. More than half or 61.5 percent
of these retail investors were based in
Metro Manila while another significant
34.4 percent were in Luzon.
PSE Quarterly
Dividend Report
In 2009, the Exchange also embarked
on a new publication that addresses the
need for dividend information of investors
who put a premium on dividend payment
history in making their investment
decisions. The PSE Quarterly Dividend
Report 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.
Exchange firms up CG reforms;
sets up investor protection fund
V - Value and enforce corporate governance standards
Corporate
Governance
The year 2009 marked the second year of the Exchange’s Corporate
Governance Improvement Program (CGIP). Launched in 2007,
the CGIP is 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.
The program focuses on seven core development areas namely,
Enterprise Risk Management (ERM) and controls; transparency and
disclosure; performance management; stakeholder engagement;
Board structure and functioning; regional benchmarking; and
special CG projects.
The following are the accomplishments for the year:
Enterprise Risk Management
(ERM) and Controls
Risk Management
The Exchange implemented its ERM program following the
framework it developed and adopted in 2008.
All departments identified key activities and determined the risks
attendant to such activities. They were then made to develop a “risk
map” by plotting their assessment of the impact of the risks on their
operations as well as the likelihood of occurrence of such risks.
All the departments’ risk maps, together with the department-
proposed risk management approach for each risk area, were
collated by the Chief Risk Officer (CRO) and submitted to the
Management Committee, which, under the PSE ERM framework,
constitutes the Risk Management Group (RMG).
The RMG then reviewed the risks as well as their management
strategies and identified the “Top 10 Risks” which in turn, were
reported to the Corporate Governance Committee of the Board.
To further improve the identification and monitoring of its risks,
the Exchange also developed a “PSE Risk Management Dash
Board” which is a computer-based program that enables all PSE
departments to upload their risk maps and strategies onto the
PSE intranet, thereby allowing the regular monitoring of risk
management activities at the department level as well as the PSE’s
risk profile at the enterprise level. This system is targeted for full roll
out in 2010.
The Exchange intends to further improve and strengthen its risk
management system by engaging the services of an advisory firm
in 2010.
Operations Manual
The Exchange is now in the process of documenting and updating
its systems and processes. Various departments updated their own
Standard Operating Procedures (SOP) in line with developments
such as the new trading and accounting systems. This initiative
to revise the operations manual is expected to provide business
Annual Report 2009
continuity, rationalize processes and introduce efficiencies, and set
clear responsibilities and accountabilities in the Exchange.
Board structure and functioning
The PSE Board, through its Corporate Governance Committee, is
evaluating for adoption the PSE Board Protocol. The Protocol is a
document that essentially outlines the practices that the board 23
directors commit to following. It covers matters such as board
The Philippine Stock Exchange, Inc.
attendance, time commitment to board matters and committee
assignments, conflicts of interest, executive sessions, access to and
working relationship with senior management, or any other matters
that the PSE Board may deem necessary.
Regional Benchmarking
The Exchange, together with the Tokyo Stock Exchange, was
elected to lead the Asian and Oceanian Stock Exchanges Federation
(AOSEF) Task Force on Corporate Governance during its general
membership meeting in April 2009. The CG Task Force was
established to provide a mechanism to discuss and help address
the current and emerging CG issues of member exchanges.
This meeting was also an excellent platform for the Exchange to
benchmark its CG programs against its peer exchanges. The Task
Force has been working on a “Survey of Corporate Governance
Systems, Practices and Issues” of its member exchanges. The study
report is intended for release during the 2010 AOSEF general
membership meeting in Indonesia.
CG Scorecard
Out of 169 companies in 2009, the Exchange has improved
its ranking in the annual Institute of Corporate Directors (ICD)
Corporate Governance Scorecard to 25th from 37th in 2008. The
Exchange’s score likewise improved to 87 percent in 2009 from 73
percent in the previous year.
 Special Projects
The Maharlika Board
The Exchange through a grant from the UK government and
assistance from the International Finance Corporation (IFC), has
been working together on a project that will establish a special CG
listing segment in the Exchange. To be named as the “Maharlika
Board,” this segment shall be reserved for companies that
voluntarily subscribe to higher corporate governance standards.
The Exchange conducted at least three working sessions to develop
The Philippine Stock Exchange, Inc.
the rules for listing on the Maharlika Board and was fortunate to
have two experts from the Global Corporate Governance Forum
in Washington DC fly in and provide their expertise in the process.
The Exchange also engaged two experts to assist in the
development of the Maharlika Board. Dr. Stephen Cheung, who
is a well-known expert on corporate governance in the Asian
region, was engaged to study the correlation of firm valuation
and corporate governance. Meanwhile, Atty. Cesar Villanueva of
the Villanueva, Gabionza & De Santos Law Offices wrote the study
on the legalities of establishing the corporate governance board.
The study of Dr. Cheung and Atty. Villanueva presented good
24 results that support the establishment of the Maharlika Board.
The findings proved that investors value corporate governance
Annual Report 2009
practices as well as affirm the Exchange’s direction of promoting
good corporate governance practices among listed companies.
Atty. Villanueva’s study, on the other hand, proposed several
alternatives to allow the corporate governance provisions that
should be in place in the Maharlika Board. He concluded that
since the Maharlika Board would be contractual, the requirements
of the Maharlika Board would be lawful provided it does not
undermine existing laws. The working draft of the Maharlika
Listings and Disclosure Rules was submitted to Atty. Villanueva
and in his final report, he opined that the rules comply with
existing laws, subject to inclusion in the Articles of Incorporation
and By-laws of corporations listing on the Maharlika Board.
The same working draft of the Maharlika Listings and Disclosure
Rules was also submitted to different local and international
stakeholders. International CG experts who have committed to
help the Exchange in the project are now reviewing the draft.
Several consultations were made in Hong Kong, in cooperation
with the Asian Corporate Governance Association (ACGA),
gathering investment companies and fund managers from
United States, Europe and Asia. The comments include their full
support to the project as it is seen as innovative and can promote
corporate governance among listed companies. The participants
during the consultations also made suggestions on topics such as
the proxy voting and independent directors. These suggestions
are now the subject of further study by the CGO.
PSE CG Guidelines for Listed Companies
The CG Guidelines contain 10 guidelines with specific
recommendations that a well-governed publicly-listed company
should adopt. This was developed after a careful review and
assessment of internationally recognized corporate governance
codes and best practices as well as a rigorous local and regional
stakeholder engagement process. The Exchange believes that
the standards reflected in the guidelines do not only conform to
international best practices, but are also relevant and responsive
to the Philippine business environment and culture.
The guidelines are designed to aid listed companies as they
endeavor to improve their corporate governance practices.
It shall be a basis for the benchmarking of practices and the
monitoring of progress. The guidelines are recommendations and
not prescriptions. No penalties will be imposed on companies
that do not comply with these guidelines. However, since the
objective is to elevate listed companies’ corporate governance
practices, a “comply or explain” system shall be implemented. As
such, companies will be required to report compliance with the
guidelines or explain why they could not comply with them.
Investor Rights and Obligations
The Exchange has included in its Investor Primer a document
compiling the rights and obligations of investors as provided in
existing laws, rules and regulations. The aim of the Investor Rights
and Obligations is primarily to inform and educate investors that
they have legal rights with concomitant obligations in connection
with their investments. The document sets forth 10 rights that deal
with different aspects of any investment, from pre-investment up
to termination of the investment. This document is included in
the Investor Primer and can be downloaded from the website.
The PSE co-hosted the OECD Asian Roundtable in September 2009.
(Photo courtesy of ICD)
Investor Dialogue Series
The ICD has been a long-time institutional partner of the Exchange
in its corporate governance initiatives. In 2009, a joint project for
an Investor Dialogue Series was organized. The Dialogue Series
is meant to become an avenue where issues can be discussed
among the stakeholders and a better relationship among all
parties concerned could be established. Two forums have been
held to allow stakeholders to air their concerns.
The Annual Corporate Governance
Scorecard Project is a continuing partnership
between the PSE, ICD and SEC. The PSE co-
hosted the Organization for Economic Co-
operation and Development (OECD) Asian
Task Force on Related Party Transactions
Roundtable Discussion with representatives
from various countries, each sharing their
experience on their regulation of related
party transactions. The product of this
working session is the Guide on Fighting
Abusive Related Party Transactions in Asia
- a document increasingly being cited by
experts, regulators and other international
CG bodies.
The Exchange likewise successfully co-
hosted the OECD Asian Roundtable on
Corporate Governance which was held for
the first time in Manila last September 9 -10,
2009.
Transparency
and Disclosure
The Exchange proposed enhancements
to the Listing and Disclosure Rules to
further promote corporate governance
among listed companies and also address
shareholder protection and abusive related
party transactions. These provisions include
a comprehensive disclosure of related party
transactions, anti-takeover measures, and
other transactions that most likely affect
the rights of shareholders and the value of
their shares. The aim of the enhancements
is to fully inform the investors and allow
them to make investment decisions with
complete information.
The proposed provisions are expected to
enhance the role of independent directors
as guardians of the rights of shareholders
by requiring them to look more closely
at related party transactions, poison pills
and change-of-control provisions. Such
proposed enhancements are currently for
review and approval of the Board.
The Exchange also adopted corporate
governance enhancements for the
brokers. This includes the requirement to
maintain a Corporate Governance Manual
stating, among others, their commitment
to conduct business responsibility by
exercising good judgment and applying
high ethical standards at all times. The
manual shall promulgate the broker’s
guidelines or criteria in electing its Board
of Directors and Board Committees (e.g.,
Nomination Committee, Compensation
and Remuneration Committee, and Audit
Committee). The brokers are also required
to have at least two independent directors
who shall ensure that the principle of
good governance is complied with. The
Exchange, through its annual regulatory
examination conducted on brokers,
evaluates the latter’s compliance with the
established manual.
The Exchange continues to enforce its
disclosure rules among the listed companies
in line with its initiative of promoting good
governance and towards a fair and efficient
market. Moreover, the Exchange continued
to intensify its campaign to educate and
assist listed companies to strictly comply
with the Disclosure Rules.
The Exchange is in the process of revisiting
the Revised Disclosure Rules. The proposed
revisions are targeted to be elevated to the
SEC for approval in 2010.
Market
Regulation
The Exchange’s Amended Market
Regulation Rules were approved by
the SEC and became effective on
November 19, 2009. Amendments to
the rule include among others, (1) the
increased minimum unimpaired paid-up
capital (UPC) requirements for trading
participants from P10 million to P20
million effective December 31, 2009 and
P30 million effective December 31, 2010;
(2) the increase in surety bonds from P5
million to P10 million for brokers and
from P1 million to P2 million for dealers
effective November 1, 2009; and (3) the
implementation of Disciplinary Guidelines
and Sanctions which classify violations
of the amended rules and securities laws
based on the severity of the offenses.
The increase in the minimum UPC and
surety bond requirements aims to further
strengthen the financial standing of trading
participants while the new Disciplinary
Guidelines and Sanctions seek to ensure
compliance by trading participants with
the relevant rules and securities laws and
to improve overall business standards in
the securities market.
The Exchange’s Rules Governing Trading
Rights and Trading Participants which
superseded the dated Membership Rules
of the Exchange were approved by the SEC
on May 28, 2009 and were published on the
Exchange’s website on June 18, 2009. One
essential provision of the rule requires each
trading participant to pledge its trading
right to the extent of its full value to secure
the payment of all debts and claims due its
clients, the Exchange and to other trading
participants of the Exchange and to the
Securities Clearing Corporation of the
Philippines. As of December 29, 2009, 98
trading participants had already executed
and submitted their pledge agreements to
the Exchange in compliance with the rule
provision.
The Exchange completed its annual
regulatory audit of 66 trading participants
of which 19 were found to have fully
Annual Report 2009
complied with the relevant provisions
of the Securities Regulation Code, its
implementing rules and regulations, and
the Exchange rules covered by the audit.
The Exchange also conducted monthly
spot audits of active trading participants
to verify their compliance with specific
provisions of said laws and rules.
25
The Philippine Stock Exchange, Inc.
The Exchange continued to improve
compliance among trading participants
through the conduct of annual compliance
seminars for trading participants and the
annual publication of commonly violated
rules and regulations together with
appropriate recommendations to ensure
compliance therewith. A compliance
seminar was conducted on April 29, 2009
and a list of commonly violated rules and
recommendations was published on the
Exchange’s website on May 20, 2009.
The Exchange also obtained the approval
from the SEC of the new standard chart of
accounts for trading participants to comply
with the Philippine Financial Reporting
Standards and International Accounting
Standards. All trading participants are
expected to fully adopt the new standard
chart of accounts by the end of 2010
along with the revised Risk Based Capital
Adequacy (RBCA) template which has yet
to be finalized and submitted to the SEC for
approval.
 Timely resolution of
Investor Complaints
To date, 100 percent of investor complaints
filed have been resolved by the Exchange,
most of which have become final and
executory, and have been appealed to
and resolved by the Market Integrity Board
(MIB) and/or the SEC.
Creation of the
Prosecution Fund
The Philippine Stock Exchange, Inc.
The proposed rules for the establishment
and operation of the “PSE Special
Prosecution Fund for Investors” were
already approved by the MIB and the
Board. The prosecution fund was created
to extend financial assistance in the form
of a subsidy for legal costs to claimants of
failed trading participants.
Proposed rules
regarding trading
26
participants
Annual Report 2009
The Exchange drafted a rule on additional
disclosure obligations of trading
participants, which was patterned after
the disclosure rules for broker dealers in
other jurisdictions, in accordance with the
suggestion of the MIB to address issues on
transparency of brokers’ operations. The
proposed “Rules on Additional Disclosure
Obligation of Trading Participants” were
already approved by the MIB and endorsed
to the Board for approval.
Pursuant to the mandate of the MIB,
the Exchange also drafted a rule for
arbitration between investors and trading
participants, patterned largely after the
arbitration rules of the Financial Industry
Regulatory Authority or FINRA. The
proposed Arbitration Rules for Investors
and Trading Participants were submitted
to the MIB and will later be endorsed to
the Board for approval.
The Exchange likewise drafted a rule
on the third-party custody of client
funds and securities, patterned after the
Custody Adopted Rules of Washington, as
suggested by the MIB to further enhance
investor protection. The proposed Rules
on Custody of Client Funds and Securities
will be submitted to the MIB and later
endorsed to the Board for approval.
Amendment to the
Rules on Public
Bidding of the PSE
Trading Right
The Exchange revised the existing rules
on public bidding to include additional
qualification requirements for bidders
with the aim of ensuring financial capacity
and market integrity of participating
bidders. The Amended Rules on Public
Bidding of the PSE Trading Right and Other
Trade-Related Assets will be submitted to
the Board for approval.
It should be noted that the Exchange
successfully auctioned the trading right of
HK Securities, Inc. (HK) by public bidding
last September 10, 2009. The proceeds of
the sale will be distributed and allocated
on a pro-rata basis to HK’s clients upon
the approval of the sale by the PSE Board.
HK’s trading right was sold pursuant to
the Takeover Order issued by the SEC last
September 25, 2008 for violation of the
Exchange rules and securities laws.
Rules for the Establishment
and Operation of the PSE
Special Prosecution Fund
Purpose: to provide financial assistance
to individual stock market investors in
filing and prosecuting criminal cases
against a trading participant, its directors,
officers, and/or agents.
How to avail of the financial
assistance: File a written request
with the Exchange through the Market
Regulation Division (MRD).
Requirements and qualifications:
a. Applicant investor must be a natural
person with a direct investment in any
of the securities listed on the Exchange;
b. The case to be filed must be a criminal
case against a trading participant, its
directors, officers, and/or agents;
c. The investor will jointly or collectively
prosecute the case together with at least
four other similarly situated investors;
d. The actual civil claim of the investor
against the trading participant shall not
be less than P200,000.00; and
e. The cause of action is based on, or
related to, a violation of the Securities
Regulation Code and its implementing
rules and regulations.
Limitations on the use
of the Fund:
a. The maximum amount of the grant
for each applicant shall not exceed
P100,000.00.
b. Any grant shall be used only to pay
the exclusive and direct fees of the
lawyer, who must be acceptable to the
Exchange, in handling the prosecution
of the criminal case.
c. No assistance shall be granted to any
person (a) who is a director, officer,
or other agent of the relevant trading
participant, or its affiliate or subsidiary,
or (b) who is the spouse, children, or
relative within the fourth degree of
consanguinity or affinity of said director,
officer, or agent.
d. No assistance shall also be granted
where the criminal violation and/or
the damage/loss to the investor(s) (a)
is partly or wholly caused or influenced
by acts directly attributable to the
investor(s), or (b) could have been
prevented by the exercise of due
diligence by the investor(s).
Exchange boosts
stakeholder engagements
E - Enhance shareholder value

Performance Stakeholder
Management Engagement
Budget Planning
The Exchange conducted a
consultations with local and international
series of
Implementation
A system of evaluating projects for inclusion
stakeholders from April to November 2009. of Purchase
in the annual budget was adopted to
These sessions were done to reach out to the Order/Inventory
improve the planning, implementation
and monitoring processes of the Exchange.
Exchange’s key stakeholders and draw from Management Project
them insights, concerns and suggestions on The primary objective of the project is to
More so, budget planning clearly specifies
how best the Exchange can help address improve the efficiency of Procurement
accountabilities, sets the timeline, and
the issues that these groups may have. It
establishes performance measures and and Inventory Management Processes
was also an opportunity for the Exchange to
deliverables for each project. by implementing the system using the
inform these stakeholders about its current

Annual Report 2009

Quarterly Reviews
The Exchange instituted quarterly reviews
of the projects for the year to monitor
their implementation and to address any
problems that may come along the way.
These quarterly meetings with all the
departments provide a venue to manage
Modules of Microsoft Dynamics AX 4.0. The
corporate governance initiatives and to
solicit their support for these initiatives.
project enhances the need for accurate and
timely availability of information regarding
expenses pertaining to procured items,
Locally, the Exchange met with institutional
fixed assets and services in meeting the
investors, representatives from pension
goal of improving overall profitability. It
funds, fund managers, officials of listed
also provides paperless transactions as
companies, market intermediaries, 27
regulators and other market participants. all of the approvals will be done online

The Philippine Stock Exchange, Inc.

performance and ensure alignment of
strategy with execution.
The international consultation
involved a combination of physical meetings
in Hong Kong, Singapore, Vietnam, Thailand
and Japan, as well as telephone conferences
with organizations based in North America
and Europe.
which is within the system’s capability. Easy
process monitoring and tracking of the inventory
and purchase orders can also be done
online. The project started last November
2009 and is expected for completion by
March 2010.

The Exchange discussed stakeholder issues

with large institutional investors, fund
managers, consulting firms, credit rating
agencies, academic institutions, regionally-
based media groups, multilateral agencies
and a number of other internationally
recognized and respected organizations
whose views on governance and investment
are influential. The consultations proved to
be very helpful as it allowed the Exchange
to: ferret out issues that prevent investors
from investing in the Philippines; correct
misconceptions about the market; and
gain goodwill and establish contact with
key stakeholders. The consultations made
the stakeholders aware of the Exchange’s
initiatives to promote corporate governance.
 Exchange gears up for REIT
listings, securities and lending
L - Launch new products and services
The Philippine Stock Exchange, Inc.

Business Development
Feasibility Study on Developing a
Derivatives and Commodities Exchange
The CBM Group (CBM), a New York-based financial consultancy
firm engaged by the Exchange in 2008, concluded their feasibility
study on the development of a derivatives and commodities
exchange in the Philippines.

The results of the study showed potential for developing a

derivatives market in the Philippines particularly for index-based
28 Left: PSE hosts the REIT Asia Pacific forum 2009: Key to Philippine futures. The study also revealed, however, that the tax structure
Capital Markets Growth. for the trading of derivative products needs to be reviewed to
Annual Report 2009

Right: An open forum commences after the main event.

allow these hedging instruments to flourish in the market. At
present, there are no futures instruments traded in the stock
In 2009 the Exchange laid down the necessary groundwork for
exchange. By attracting these instruments to be traded in a formal
the introduction of the Real Estate Investment Trust (REIT) and
exchange, these instruments can be better regulated and the risks
Securities Borrowing and Lending (SBL) in a continuing pursuit
associated with derivatives trading can be managed accordingly.
to introduce new products for the investing public.

With respect to commodities trading, the study reveals the

Real Estate Investment Trust (REIT)
viability of developing a commodities exchange starting with
A REIT Conference entitled, “REIT Asia Pacific Philippines 2009:
select crops such as sugar.
Key to Philippine Capital Markets Growth,’’ was held on
September 30, 2009 at the Heritage Hotel, Manila. The conference
The Exchange shall use the inputs from the study in crafting
featured different structures of REITs in Asia; REIT best practices
the roadmap for expanding the menu of products available for
and current property trends in the region; and the outlook
trading at the Exchange.
for the Philippine REIT market. It also highlighted the relevant
provisions of the then proposed REIT bill. The competitive Asian
REIT landscape, lessons learned and best practices of different
Asian REIT markets and corporate governance issues were
Market Data Business
tackled during the panel discussions.
Market data revenues continued to thrive against an otherwise
volatile market by posting a modest growth of 12.5 percent to
More than 100 participants from local and foreign property
P21.6 million in 2009 from P19.2 million in 2008. This growth was
companies, investment banks, law firms, consultants and the
primarily due to the introduction of a more rationalized pricing
media attended the conference.
structure and the increase in number of clients to 47 from 40.
The increase in number of clients was however limited by the
The REIT bill, which is now Republic Act No. 9856 or “An Act
Exchange’s ongoing effort to migrate to a new trading system,
Providing the Legal Framework for Real Estate Investment Trust
causing prospective clients to hold off on integrating their
and for Other Purposes,” lapsed into law on December 17, 2009.
systems with the old trading platform.

Securities Borrowing and Lending(SBL)

For the dealing terminals, trading participants responded
The SEC approved the Exchange’s proposed amendment to
accordingly with the movement of the market, with the number
Section 2.02 of the PSE Rules on Securities Borrowing and
of terminals increasing to 381 only in the last quarter of 2009
Lending. This allows trading participants to employ any of
from 367 of the previous year. Revenues from these subscriptions
the lending modes allowed by SEC Memorandum Circular No.
increased by 10.4 percent to P14.7 million in 2009 from P13.3
7 (2006) pending the issuance of the program guidelines that
million in 2008. On the other hand, revenues of P3.5 million from
would ensure all trading participants’ compliance with all the
dealing systems using the Communications Front End (CFE) data
requirements of SBL Rules issued by the SEC, the Bureau of
feed experienced minimal increase from P3.4 million in 2008. This
Internal Revenue and the PSE.
is again attributable to prospective clients deferring their decision
pending the launch of the new trading system.
New Trading System
primed for launch
U - Upgrade market infrastructure and human resources
Information
Technology
The Exchange continues to pursue the
enhancement of its trading infrastructure
through its New Trading System
(NTS) project. In 2009, infrastructure
improvements include the upgrade of
the Exchange’s internet connection from
2 megabits per second (mbps) to a high
speed 10 mbps link; the study and use of
appropriate client access security system;
the installation of 250 new Core2Duo
trading terminals to replace terminals
in the Ayala and Tektite trading floors;
front-end installation at traders’ remote
sites and a host of installation; testing
and tuning activities all geared towards
the smooth implementation of the NTS. A
new Precision Air Conditioning Unit and
a Temperature and Humidity Monitoring
device were likewise installed at the Ayala
Data Center as part of the Exchange’s
site preparation to ensure the proper
temperature and humidity of the servers
and other components.
On the applications front, much effort has
been exerted towards the preparation
of the Exchange’s back-office systems
to make all the systems compliant to
the NTS which included the design and
development of a universal interface that
would cater to clearing and surveillance,
among others. With the new business
rules and requirements as a result of the
New Trading Rules, developments of new
micro modules were undertaken and these
include Client Code Generation; Trade
Amendments and Cancellations; Trade
Unbundling; Consolidated Trade File; and
the End-of-Day Price File. This was done in
collaboration with the Market Operations
Division. A data reconciliation and
contingency module was also developed to
mitigate untoward incidents and to ensure
the release of accurate data at all times.
In line with the Exchange’s plan to
ensure continuous trading despite the
unavailability of the primary data center,
preliminary works have started to move
the Disaster Recovery (DR) servers to a high
security, reliable and stable site. Both local
and foreign sites are being considered for
this co-location project. Market survey and
proof-of-concept activities have likewise
started for a new email system to improve
the messaging system of the Exchange.
Finally, the Contract Management System
was developed and implemented to assist
the Exchange in the monitoring and
management of contracts.
The Exchange prepares the trading participants
for the New Trading System through
market rehearsals.
New Trading System
To further develop its infrastructure, the
Exchange acquired the NTS to replace the
existing MakTrade system. Currently, the
Exchange still provides support in terms
of MarketWorks installation, facilitates
trading participant’s request for CFE
Certification and provides functional
support to trading terminal users at the
trading floor and offsite to name a few.
In line with the implementation of the
NTS, the Exchange facilitated the training
and testing of a total of 604 trainees as of
December 2009 using the PAM workstation
or the trading terminal for the new trading
system replacing MarketWorks. Traders who
have successfully passed the examination
can request for their Trader ID to be used
Annual Report 2009
in accessing the trading system. As of
December 2009, a total of 418 trading
accounts have been defined in the NTS.
The Exchange is maintaining a separate
website for NTS. The website is intended to
inform the participants of any developments
and updates in the NTS project. All 29
NTS-related memos, announcements,
The Philippine Stock Exchange, Inc.
presentations, technical requirements,
documentations, training schedules and
schedule of events are available on the said
site.
The Exchange also introduced some
changes in the course of trading operations
which will be implemented with the launch
of the NTS to promote operational efficiency
and enhance transparency such as the
submission of client codes. This entailed
that account codes were standardized
for all trading participants. The Exchange
will also implement the use of aggregate
accounts by trading participants when
posting orders for clients. However, they
will be required to submit to the Exchange
at the end of each trading day the allocation
made for any aggregate orders entered into
the system.
Under the NTS, trading participants with
dealer accounts are required to have a
dedicated trader to handle such orders.
The NTS also tracks the foreign ownership
 limit by preventing any incoming orders from foreign investors
beyond the foreign ownership limit of the listed companies.
Listed companies will be required to report to the Exchange on a
regular basis any updates in the foreign ownable shares.
Oddlot trading will follow the same matching algorithm as the
regular board that will allow partial matching of oddlot orders
regardless of the number of shares posted under the NTS.
Lastly, the determination of the closing price has been changed
from the last transaction price prior to the run-off period to a
closing price calculation depending on the volume and price
The Philippine Stock Exchange, Inc.
Human Resources
Capacity-Building Efforts
The Exchange sent employees to the following foreign training
programs as part of its capacity-building efforts: US Securities and
Exchange Commission (SEC) International Institute for Securities
Market Development; Stock Exchange Seminar for Asian Countries
sponsored by the Japan International Cooperation Agency
(JICA); 4th and 5th Asia Securities Forum Training Seminars
sponsored by the Japan Securities Dealers Association (JSDA);

posted during the pre-close period. Korea Capital Market Seminar sponsored by the Korea Financial
Investment Association (“KOFIA”, formerly Korea Securities
In line with the Exchange’s program to promote good corporate Dealers Association); and immersion/exposure training of Issuer
governance, certain sections of the existing Trading Rules were Regulation Division (IRD) personnel at the Hong Kong Stock
amended and implemented. Exchange and Clearing Ltd. (HKEx).

These rules include: the Pre-Open Cancellation Rule, which

The Exchange likewise conducted in-house seminars such as the
states the amended penalties for any violation of the pre-open
Corporate Image Seminar and Effective Business Writing Skills to
cancellation rule, and was approved by the Board last October
enhance employees’ personality, oral and written communication
29, 2008 and implemented in January 2009; the rule on the
Immediate Execution of Approved Block Sale, which aims to skills.
improve transparency and equality among participants, and was
30 approved by the Board last August 12, 2009 and implemented in With the assistance of the Chartered Financial Analyst (CFA)
October 2009; and Provisions for Lifting of Trading Band which Philippines, two employees were granted scholarships for Level 1
Annual Report 2009

was also approved by the Board last August 12, 2009 has been to Level 3 Exams. It is noteworthy that another employee passed
submitted to the SEC for approval. the Level 1 Exam and qualified for the Level 2 Exam as a scholar.

Figure 5. PSE Organizational Chart

Stockholders
Board of Directors NOMELEC
Market Office of the Audit Committee
Integrity President
Board Corporate Governance
Corporate Committee
Governance Office
Corporate Secretary Board Secretariat
Strategy Mgt.
Treasurer
Risk Mgt.
Internal Audit
COO Office of the
Gen. Counsel

SCCP Issuer Technology Market Operations Market Regulation Capital Markets Finance and Corporate Services
Regulation Division Division Division Development Division Investments Division Division
Division
Applications Trading Operations Trading Marketing Budget &
Listings Development & Control Dept. Participants Services Dept. Treasury Dept. Corporate & Human Resources
Department Department Regulation Dept. External Affairs & Administration
Broker Systems Market Education Accounting Department Department
Disclosure Infrastructure Support & Cert. Dept. Market Dept. Dept.
Department Systems Admin Surveillance Dept. Corporate Human Resources
Deparment Trading Business Dev’t PSE Foundation Planning & Mgt. Section
Development Dept. Prosecution & Dept. Research Section
Market Data Enforcement Dept. Administration
Business Data Management Public & Investor Section
Department Dept. Relations Section
Database
Administration
Department
Employee Stock Purchase Plan (ESPP)
The year 2009 marked the second offering of the Employee Stock Purchase Plan (ESPP) to
qualified employees or participants with at least one year tenure in the Exchange and its
subsidiary, the Securities Clearing Corporation of the Philippines (SCCP). A total of 50,000
shares with an additional 7,760 ESPP shares that were unavailed of in 2008 were offered
for sale to qualified employees or participants. The exercise price, or the determined price
during the time of offer, is P238.02 per ESPP share. This is based on the Volume Weighted
Average Price (VWAP) of PSE shares during the preceding month ending July 3, 2009, with
a 10 percent discount. A total of 57,748 ESPP shares were subscribed to as of the close of
December 2009. The ESPP team of Administrators is composed of the Exchange’s Chief
Operating Officer (COO) as the Chairman, and the Head of the Corporate Services Division
and COO of the SCCP as members.

Annual Report 2009

Top: Employees battle it out at the court.
Top Right: Children of employees enjoy
the Exchange’s quarterly socials with a
halloween party theme.
Right: Employees take a break from the
Bowling Tournament. 31

The Philippine Stock Exchange, Inc.

Bottom Left and Far
Right: Overhead and
PSE Office
frontal shots of the Integration Project
Ayala trading floor The Board has approved the implementation
reveal the preliminary
structures that will of the Office Integration Project in reference
house the integrated to Board Resolution No. 66, Series of 2009,
offices of the PSE. where all the offices at PSE-Tektite will
Right: It’s business
be transferred to PSE-Ayala. A total of 80
as usual at the Ayala
trading floor. trading booths next to the electronic board
at the Ayala trading floor will be retained
in line with the construction of additional
office spaces. Renovation works will also be
done to existing offices and other areas at
PSE-Ayala to maximize the work spaces. The
main objective of the project is to increase
the efficiency of the Exchange’s operations
and reduce its occupancy and operational
costs. The Office Integration Project is
targeted for completion by the second half
of 2010.
 Exchange lauds Market-
Friendly Laws
P - Partner with government and other stakeholders
Real Estate Investment Trust (REIT)
The Real Estate Investment Trust (REIT) Act of 2009 lapsed into
The Philippine Stock Exchange, Inc.
law on December 17, 2009.
Recognizing the significant contribution of real estate
investment companies in various economies and capital
markets around the world, the Exchange supported the REIT Act
of 2009 to encourage the establishment of REIT companies that
will be incorporated solely for the purpose of owning income
producing real estate and related assets. REIT companies will
have to actually distribute dividends of at least 90 percent of
taxable net income, as defined in the law, to its shareholders in
order to avail of the preferential tax treatment.
The law mandates that shares of stock in a real estate
32 investment company must be listed on the stock exchange to
make it easier to buy or sell shares and promote transparency in
Annual Report 2009
these companies. A REIT company is taxed on its gross income
less allowable deductions and dividends distributed. In order
to enjoy the corresponding corporate tax incentives, the REIT
company must distribute at least 90 percent of its distributable
income as dividends and maintain its status as a public and
listed company. The investment vehicle is required to be in the
corporate form, externally managed, with at least 75 percent of
its deposited property being income-producing property; must
observe limitations on ownership levels, borrowings, property
development activities; and should comply with requirements
for interested party transactions, allowable investments,
reportorial and disclosure requirements. Investment risks are
minimized since the assets of a REIT company are managed
professionally by an independent fund and property manager.
Abolition of Documentary Stamp
Tax (DST) on Secondary Trading
On June 30, 2009, the President of the Republic of the Philippines
signed into law Republic Act No. 9648, which exempts from DST
the sale, barter or exchange of shares of stock listed and traded
through the stock exchange, with retroactive effect to March
20, 2009.
Section 199 (e) of the National Internal Revenue Code of 1997
(the “Tax Code”), as amended by Republic Act No. 9243, provides
that the sale, barter or exchange of shares of stock listed and
traded through the local stock exchange is exempt from DST for
a period of five years from March 20, 2004 when Republic Act
No. 9243 took effect. Prior to March 20, 2004, secondary trading
of shares listed on the stock exchange was subjected to a DST of
P0.75 for each P200.00 par value, or a fractional part thereof, of
the shares of stock sold.
Personal Equity and Retirement
Account Act (PERA)
The PSE Board attends the signing of the Personal Equity and Retirement
Account Act in Malacañang.
The Exchange was at the forefront of the successful passage of
the Personal Equity and Retirement Account (PERA) law which
was signed on August 22, 2008. On October 21, 2009, the PERA
implementing rules and regulations (IRR) were approved by
the Bangko Sentral ng Pilipinas, the Securities and Exchange
Commission, Department of Finance (DoF), Office of the Insurance
Commissioner, and the Bureau of Internal Revenue (BIR). However,
the revenue regulations for the PERA Act have yet to be approved
by the DoF and the BIR.
The Exchange supported the passage of the PERA Law to promote
capital market development and encourage voluntary personal
savings and investments to provide for one’s retirement. The PERA
Law also helps provide greater financial security to the working
population while at the same time aids in generating more tax
revenues for the government in the form of turnover taxes.
Under the PERA Law, individual and married couples may
contribute up to P100,000 and P200,000 per year, respectively.
If the contributor is an overseas Filipino, the maximum annual
contribution goes up to P200,000 per individual and P400,000 per
couple.
Under the new law, a PERA contributor will enjoy the following
benefits:
- a tax credit equivalent to five percent of the member’s
maximum annual PERA contribution;
- a tax exemption for the income from the PERA investments and
reinvestments;
- a tax deduction for employers who contribute to the PERA
account of their employees;
- a tax exemption for all distributions upon retirement or death,
provided that, in case of retirement, the contributor has
reached the age of 55 and made contributions for at least five
years; and
- PERA assets shall not be considered as assets of the contributor
for purposes of estate taxes.
Financial Rehabilitation and Insolvency Act (FRIA)
Finally, on February 2, 2010, Congress adopted the Financial Rehabilitation and Insolvency Act of 2010. The FRIA aims to update the
outdated legal framework of the country’s insolvency proceedings under the century-old Insolvency Law of 1909 which proved to be
inadequate and unresponsive to present day business issues.

FRIA aims to establish new and effective procedures in insolvency proceedings which are designed to maximize the chances for the
survival of the business of a financially distressed company or individual by providing four different remedies, such as:

a. Court-supervised rehabilitation plan is required to be d. Liquidation

Rehabilitation
This proceeding may be initiated by
either the debtor or the creditor and
the approval of the rehabilitation plan
by each class of creditors is required.
The rehabilitation plan is deemed
to have been approved by a class of
creditors if members of the said class
holding more than 50 percent of the
total claims of the said class votes in
favor of the plan. The Court shall have a
maximum period of one year to confirm
the approval of the rehabilitation
plan. Upon confirmation by the Court,
the rehabilitation shall have a “cram
down effect” on all creditors, whether
or not such creditors participated in
the proceedings. The proceedings
approved by creditors holding at
least 2/3 of the total liabilities of the
debtor, including secured creditors
holding more than 50 percent of the
total secured claims and unsecured
creditors holding more than 50
percent of the total unsecured
claims of the debtor. The Court
shall have a maximum period of 120
days to approve the pre-packaged
rehabilitation plan.
c. Out-of-Court or Informal
Restructuring Agreement
or Rehabilitation Plan
Under this remedy, the out-of-court
rehabilitation plan requires
agreement of the debtor and the
This remedy is available to both
juridical and individual debtors. The
liquidation order approved by the
Court shall vest all title and control
of the assets of the debtor on the
liquidator. The liquidation order
shall also contain a schedule of the
liquidation of the assets of the debtor
for the payment of the claims of the
creditors. Upon the termination of the
proceedings, the Court shall declare
the dissolution and liquidation of the
juridical debtor or the discharge of the
individual debtor from his liabilities.
Under the FRIA, the rehabilitation of
the
securities market participants such as
brokers, dealers, underwriters, transfer

Annual Report 2009

may be converted to liquidation if
rehabilitation is not successful or is
not feasible.
b. Pre-packaged Rehabilitation
This action may be instituted by
the debtor, by itself, or jointly with
its creditors. The pre-packaged
approval of creditors representing
agents or other entities transacting
at least 67 percent of the secured
securities in the capital market does not
obligations, creditors representing
preclude the filing of any form of action
75 percent of the unsecured
by clients to recover or otherwise claim
obligations and creditors holding at
money and securities against the securities
least 85 percent of total secured and
market participant as well as the filing of
unsecured liabilities of the debtor.
any action by the regulatory agency or
self-regulatory organization to pay or settle
33
such claims or liabilities.

The Philippine Stock Exchange, Inc.

Hosting of the 28th AOSEF General Assembly
The Exchange successfully hosted the 28th Asian and Oceanian
Stock Exchanges Federation (AOSEF) General Assembly in Mactan,
Cebu on April 23, 2009. This was the second AOSEF general
assembly conducted in the Philippines after AOSEF, formerly the
East Asian Oceania Stock Exchanges Federation, was founded 10
years ago.
Exchange; Jasdaq Securities Exchange; Korea Exchange; Bursa
Malaysia; Mongolia Stock Exchange; National Stock Exchange
of India; New Zealand Exchange; Osaka Securities Exchange;
Philippine Stock Exchange; Shanghai Stock Exchange; Shenzhen
Stock Exchange; Singapore Exchange; Taiwan Stock Exchange;
Stock Exchange of Thailand; and Tokyo Stock Exchange.

The General Assembly highlights the yearly gathering of 19

member stock exchanges to discuss relevant issues affecting the
market. Aptly titled as “Facing Changes and Challenges in the
Global Markets,” the focus of the assembly in 2009 was the critical
response of member Exchanges to the financial crisis as well as the
exploration of ASEAN trading links that will catapult the region into
a bigger and more competitive asset class.

The Exchange invited Her Excellency, President Gloria Macapagal-

Arroyo to be the keynote speaker during the AOSEF General
Top left: AOSEF
Assembly. Mrs. Arroyo expressed her support for AOSEF and the members pose during a
creation of an Asian economic community that will include the recreation trip at Bohol.
Middle East, Central, South and East Asia and Oceania “to maximize Top: PSE hosts the
28th AOSEF General
growth, trade and financial stability.”
Assembly.
Left: Cebu Government
AOSEF counts among its members the following Exchanges: hosts dinner for AOSEF
Australian Securities Exchange; Bombay Stock Exchange; Ho Chi delegates.
Minh Stock Exchange; Hong Kong Exchange; Indonesia Stock
 ASEAN Collaboration
The ASEAN stock exchanges formally entered into a Memorandum
of Agreement (MOA) in February 2009 to proceed with the
discussions in developing an ASEAN trading linkage and in
establishing an ASEAN Board. This is in line with the goals of the
ASEAN Economic Community Blueprint and to strengthen ASEAN
capital market development and integration. The Agreement was
entered into by Bursa Malaysia, Indonesia Stock Exchange, PSE,
Singapore Exchange, The Stock Exchange of Thailand, and later
in September 2009, the Ho Chi Minh Stock Exchange.
The Philippine Stock Exchange, Inc.

PSE taps Thomson Reuters Philippines for the makeover of the PSE-Insular
electronic billboard.

MOA Signing with

ASEAN Exchanges ink an MOA for an ASEAN trading linkage.
Pursuant to this Agreement, the Exchange actively participated
in the discussions to develop an ASEAN trading linkage through
34 the ASEAN CEO’s meetings and the ASEAN Strategy Development
Working Group. For 2009, the ASEAN exchanges agreed on
Annual Report 2009
Thomson Reuters
The Exchange partnered with Thomson Reuters Philippines last
August to provide investors real-time market prices, news and
summaries on the PSE-Insular electronic display board in Makati
City. Thomson Reuters likewise modified the look of the electronic
board, which measures about 30 meters in length and 1.5 meters
in height, to showcase a more dynamic form that could deliver
a stronger message that the stock market is a viable alternative
investment instrument.

the key principles and features of the proposed ASEAN trading

linkage. Under the proposed structure, each ASEAN exchange
will be electronically linked to each of the ASEAN exchanges
thereby allowing investors from one ASEAN country to trade
stocks listed on other ASEAN markets with practically the same
ease as trading local stocks.

The Exchange also participated in the ASEAN Product

Development Group that aims to develop new ASEAN products
that will enhance the visibility of the ASEAN across the globe.

The Exchange entered into separate Memorandum of PSE and Department of Agriculture sign an MOA for a commodities trading study.

Understanding (MOU) with Shenzhen Stock Exchange, Ho Chi
Minh Stock Exchange, and Korea Exchange, Inc. to explore
mutual cooperation through information and experience sharing.
The MOUs are expected to benefit the respective markets and
assist in the maintenance of orderly financial markets in each
jurisdiction. The stock exchanges have agreed that mutual
collaboration, cooperation and communication among the
parties will facilitate the development and efficient operation of
the securities markets. The MOUs are subjected to the execution
of definitive implementing agreements.
MOA with the Department
of Agriculture to pave the way
for a Philippine commodities exchange
The Exchange and the Department of Agriculture (DA) signed an
MOA to pursue the development of an organized commodities
market in the Philippines. Under the Agreement, the Exchange
and DA shall work together in engaging various stakeholders
and farmer groups to ensure that an appropriate structure is
established for a commodities exchange. DA, together with its
attached agencies, the National Food Authority, Sugar Regulatory
Administration, and the Philippine Coconut Authority, shall also
be extending assistance and support in setting up the necessary
regulatory environment to facilitate the establishment of an
organized commodities market. The assistance by the DA also
extends to setting up the necessary infrastructure, such as
warehouses and farm-to-market roads, to ensure the efficient
delivery of agriculture commodities.

The PSE-Insular electronic board flashes market data and news to motorists that
ply through the busy intersection of Ayala Avenue and Paseo de Roxas in Makati.

PSE clinches 2009 BSP Stakeholders Award.
PSE Heralded for
Contribution to
Monetary Policy
Making
The Exchange takes pride in leading
by example the pursuit of active
stakeholdership for economic growth
after receiving an award from the Bangko
Sentral ng Pilipinas (BSP). The Exchange
was awarded the Special Recognition
for Source of Information for Monetary
Policy, Research Entity category, during
the awarding ceremony and appreciation
lunch for the 2009 BSP Stakeholders held
last July 14, 2009.
Corporate
Social
Responsibility
The PSE Foundation, Inc., together with
the PSE and the SCCP, set up a special
fund worth P2.16 million for the victims
of the typhoon “Ondoy.” This fund was
disbursed through rice donations to the
Pasig City campaign for its constituents,
cash assistance to PSE and SCCP employees
as well as service providers like janitors
and security guards who were seriously
affected by the typhoon. Likewise, the
Foundation took out from the fund P1.0
Million as donation for the clean-up of the
24-kilometer Pasig River, coursed through
the ABS-CBN Foundation “Kapit Bisig sa Ilog
Pasig Clean Project,” to prevent flooding
in Metro Manila and to relocate residents
affected by the typhoon.
The Pasig River connects key areas of Metro Manila, making it
more susceptible to waste that hamper its rehabilitation. As a
meaningful response, the ABS-CBN Foundation, through the
donation from different organizations such as the PSE Foundation,
began community-based strategies for residents along the
riverbanks beginning with the Estero de Paco near the Paco
Market and Quirino Highway. Since then, residents along Estero de
Paco have contributed to the Pasig River’s rehabilitation through
proper waste management.
Towards partnering for the development of the capital market,
particularly for a reliable domestic stock market base, the
Foundation contributed to the PSE’s hosting of the 28th General
Assembly and Working Committee Meeting of the Asian and
Oceanian Stock Exchanges Federation (AOSEF). The meeting was
held from April 22 to 25, 2009 at the Shangri-la Mactan Island
Resorts and Spa in Cebu City. It was attended by 80 representatives
from 15 countries.
Other special projects undertaken by the Foundation in 2009 were
the reprint of 3,000 copies of the educational primer, “Building
Wealth with Stocks: A Basic Guide to Investing in the Philippine
Annual Report 2009
Stock Market” and a sponsorship for the annual PSE “Bull Run:
Takbo Para sa Ekonomiya” held in January.
On a regular basis, the Foundation is the resource agency for the
roadshows conducted by the PSE Market Education Department;
for the maintenance of the secretariat of the Capital Market
Development Council (CMDC) operated under the auspices of the
Financial Executives of the Philippines (FINEX); and for assistance
35
to child development through the Children’s Joy Foundation.
The Philippine Stock Exchange, Inc.
Total donations and projects funded by the Foundation in 2009
amounted to P1.2 million for capital market development and P1.8
million for charitable acts and environment greening.
This collage of photos shows the past and present situation of Estero de Paco.
(Photo courtesy of ABS-CBN Foundation)
 Subsidiary
Securities Clearing
Corporation of the
Philippines
The Securities Clearing Corporation of the Philippines, a wholly-
The Philippine Stock Exchange, Inc.
owned subsidiary of The Philippine Stock Exchange, Inc.,
registered a 39 percent increase in net income to P104.12 million
for 2009 from P74.86 million in 2008. Meanwhile, the service fees
earned by SCCP increased by 30 percent to P177.58 million from
P136.40 million in 2008. During the year 2009, the SCCP Board
declared cash dividends on two occasions: one on February 25,
2009 in the amount of P28.2 million in favor of stockholders on
record as of March 2, 2009, and these were paid on March 6,
2009; and the other on December 15, 2009 in the amount P80.0
million in favor of stockholders on record as of December 31,
2009 and these were paid on February 22, 2010.
36 Clearing and Settlement Operations
For the year 2009, Clearing Members continued to maintain
Annual Report 2009
a very satisfactory compliance rate of 99.95 percent for the
delivery of their securities and cash obligations by the 12:00
noon deadline on T+3. There were no overnight settlement fails
experienced during the year; hence, the SCCP did not need to
tap its credit facility with any of its settlement banks to cover a
potential cash fail.
As part of the SCCP’s infrastructure enhancement and in line with
its objective of improving settlement processing and releasing
cash and securities entitlements at an earlier time, the SCCP
purchased its own production and back up database servers and
the necessary Oracle software in order to migrate its clearing
and settlement system from the PSE database server to its own
database server. Testing of the new database servers is ongoing
and the SCCP expects to effect the planned migration within
the first quarter of 2010. Moreover, the SCCP’s Settlement Banks
have automated the crediting of due broker proceeds from the
clearing members’ settlement accounts directly to their working
accounts.
SCCP Depository Project
In early 2009, the SCCP created a Depository Project Team
composed of officers of the Exchange and SCCP, tasked to set
up the depository for SCCP. Prior to the kick-off of this project,
the team presented to the SCCP Board of Directors the proposed
market structure as well as the financial and organizational plan
for establishing the depository. After receiving the approval of
the Board, the Depository Project Team (1) drafted the proposed
depository rules and operating procedures, in consultation with
the PSE-Market Regulation Division as well as market participants;
(2) presented to the Securities and Exchange Commission (SEC)
the proposed depository rules and operating procedures as well
as the proposed market set-up; (3) provided preview sessions
for the clearing members on the Depository module of the CCCS
system; and (4) trained with a major Depository overseas who
also provided the team with exposure on the operations of a
major Custodian Bank and Share Registry. Additional trainings
and exposures are underway to prepare the SCCP staff in
providing depository services for the equities market.
The Depository project of the SCCP aims to provide the equities
market participants with a central system performing both
the depository and clearing and settlement functions. This
would enable the SCCP to be at par with the practices of most
Exchanges where the clearinghouse and the depository are
operated by one entity which is under the direct regulation
of the Exchange. In addition to creating efficiency, the SCCP
aims to reduce the friction costs of its clearing members and
ultimately, the end-investors.
PSE New Trading System Project
The SCCP worked closely with the PSE-Information Technology
Division for the revision of processes needed to be done in
extracting trade and closing prices data, which are expected to
be affected when the New Trading System (NTS) is launched.
Moreover, the SCCP participated in the NTS market rehearsals
facilitated by the Exchange, since the SCCP is one of the
recipients of the trade feed for end-of-trading data validation
and uploading.
PDTC’s Migration from
Fintracs to eCS system
The SCCP took active participation in the activities conducted
by the Philippine Depository & Trust Corp. (PDTC) prior to
the live implementation of their new depository system (eCS
system) in mid 2009. This includes the SCCP’s participation in
the market-wide testing providing support to the participants
and ensuring the integrity of the connectivity and interface
between the CCCS and eCS systems, full-cycle processing of
settlement instructions and pledging/uplifting of securities as
collateral.
Risk Management and Monitoring
Risk management and monitoring continued to be given
top priority during the entire 2009. The SCCP consistently
implemented its risk management procedures on “Highly
Unusual Settlement Obligations,” “Haircut on Pledged Securities
Collateral,” and “Designated Stocks” or stocks that exhibit
unusual price, volume and value changes as part of its daily
functions. The SCCP likewise closely monitored whether each
clearing member was adequately capitalized to meet its daily
average netted obligations.
As we had previously reported, the SCCP had engaged the
services of The CBM Group, Inc., a management consulting firm
based in New York, USA, to undertake a study on clearing house
equity market risk management and institutionalize the SCCP’s
risk management procedures and become at par with global
standards and practices. This was known as “Project Clearing
House”.
Project Clearing House
On November 11, 2009, The CBM Group presented its final report
to the joint Board of Directors of the PSE and the SCCP. The
recommendations of The CBM Group are as follows:
Introduction of Two-Tiered
Clearing Membership
The CBM Group recommends that access to the
clearinghouse be made selective and restricted to
counterparties that meet significant capital requirements
and risk management standards, expressed through a
“clearing member rating scale,” as opposed to the current
practice where all trading participants are automatically
eligible to apply as clearing members.
Imposition of Margin
Requirements
In addition to the Mark-to-Market collateral requirement
which covers for the price fluctuation risks, The CBM
Group recommends that the SCCP require its members to
post Margin Collateral designed to cover for replacement
risk to a 95 percent Value at Risk ( VaR) standard, which
assumes normal market conditions. The implementation
of Margin Requirement would shift the SCCP’s approach
from a Clearing Fund-driven to a Clearing Member-driven
risk management thereby placing more responsibility
on the clearing members for the risks they bring to the
clearing system and at the same time, protecting the
Clearing and Trade Guaranty Fund (CTGF).
Adoption of Real-time Mark-to-
Market Collateral Deposit System
The CBM Group recommends that the SCCP move
toward an intra-day Mark-to-Market calculation and
subsequently, real-time calculations using the last
available trading price, being the best practice approach.
The CBM Group recognizes that real-time Mark-to-
Market processing will require the implementation of the
Collateral Management module of the clearing system
(CCCS), as well as a “real time” link with the new trading
system (or at least frequent uploading of trade data
between the trading system and the clearing system).
Migration to Full Netting of Trades
The CBM Group recommends that the SCCP move to a full
multilateral netting process rather than netting by flags
(foreign/local, client/proprietary). As a backgrounder,
multilateral netting is defined as a netting system in
which all trades are netted to arrive at a final long or
short cash and securities position for each participant.
The process of multilateral netting starts as soon as trades
done in the Exchange are uploaded to the clearing and
settlement system of the SCCP. The system automatically
offsets “buy” and “sell” transactions on a per issue and a
per flag basis to arrive at a per flag net receipt or a net
delivery security position for each clearing member.
Annual Report 2009
All cash debits and credits are also netted into a single
net cash position for each clearing member. A clearing
member may have executed many transactions on a single
issue with any number of clearing members, but at the
end of the netting process, it will be left with one single
obligation to deliver securities or cash, or an entitlement
to receive securities or cash. 37
The Philippine Stock Exchange, Inc.
Presently, as mentioned earlier, multilateral netting
is done by the SCCP on a per flag basis, unlike other
clearinghouses around the globe which simply offset
“buy” transactions against “sell” transactions of the same
security, regardless of whether the trade was done by a
local or a foreign client and regardless of whether it is a
client or proprietary trade. The CBM Group recommends
that the SCCP move to a full netting process rather than
netting by flags. In the review of The CBM Group, the
reduction in the overall volume on average will be by
as much as 54 percent if the SCCP applies full netting.
In addition, implementation of full netting will result in
the (1) reduction in the outstanding obligations of the
clearing members due for settlement; and (2) increased
productivity due to lesser transactions for processing
which would further result in faster and more efficient
clearing and settlement processing and earlier crediting
of entitlements to the clearing members and ultimately,
the end-investors.
 Implementation of
“Super Margins”
The CBM Group recommends that the SCCP require
the clearing members to post “Super Margins” when
they create exceptionally large exposures exceeding
the coverage offered by the CTGF and posted Margin
Collaterals. This is to protect the CTGF from being fully
impaired in the event that any of the clearing members
defaults on its obligations.
Implementation of Trading Limits
The Philippine Stock Exchange, Inc.
The CBM Group recommends that the SCCP introduce
risk-based trading limits. The trading limit should be
imposed on a clearing member in the event that its (a)
Margin collateral is less than the Margin Requirement of
SCCP; (b) Super Margin collateral is less than the Super
Margin Requirement of SCCP; or (c) its Due Clearing
obligations to SCCP are more than the current level of the
CTGF, collateral posted and any line of credit provided
by its settlement bank. The trading limit will serve as
the SCCP’s credit limit to its clearing members such that
the inability of a clearing member to post margins on its
38
trade obligations would cause the SCCP to restrict said
Annual Report 2009
clearing member from creating additional risks on the
clearing system.
Alternative Cash Settlement
The CBM Group recommends that the SCCP implement
the Alternative Cash Settlement earlier than T+7 in the
event of a security fail. This is particular to the securities
which are highly illiquid and would take days before a
failed trade on such security will be unwound, thereby
exposing the SCCP to unlimited number of days at risk if
the Alternative Cash Settlement is not triggered.
As of year-end 2009, the SCCP management was in
the process of evaluating the impact of the above
recommendations on the operations of the Company
and the market participants. These then would become
the SCCP’s basis for formulating its proposed Risk
Management Framework which are to be presented to
the SCCP Board in the following board meeting.
Collateral Management
The Securities and Exchange Commission (SEC) approved
on November 18, 2009 the SCCP’s application to implement
the customized Collateral Management Module of CCCS and
the corresponding amendments to its Rules and Operating
Procedures. After conducting the preview sessions to Clearing
Members, the Collateral Management Module will be tested for
production and is expected to be implemented within the first
half of 2010.
When implemented, the daily mark-to-market procedures will
be fully automated and Clearing Members and the SCCP will only
have to use the CCCS System for (1) Marking to Market of the
Clearing Members’ unsettled trades and collateral deposits; (2)
Notification of collateral requirements / refund to all concerned
clearing members; (3) Delivery of cash or securities collateral;
(4) Execution of early delivery instructions; (5) Generation of
corresponding reports; and (6) Monitoring by SCCP of delivery
of collaterals by the Clearing Members.
Securities Borrowing and Lending
The SCCP awaits the approval of the SEC to be a Lending
Agent for Securities Borrowing and Lending (SBL) transactions
where the SCCP as Lending Agent will play the role of a Central
Counterparty. It is necessary for the SCCP to stand as a Central
Counterparty because the CCCS system adopts a “screen and
pool concept” where the participants will lend and borrow the
securities in a completely anonymous way. Lenders will only
need to deposit the securities for lending in the Lending Pool
where the SCCP will be the Pool Operator.
In addition to the above, one of the highlights of the SCCP’s
SBL facility is the execution of the Multilateral Master Securities
Lending Agreement (Multilateral MSLA). Participating clearing
members would only need to execute a one-time Multilateral
MSLA which would already allow them to become Borrowers or
Lenders in the SBL program of SCCP.
As a Central Counterparty Lending Agent, the SCCP will ensure
the sufficiency of the collateral guaranteed by the Borrower by
performing a daily valuation of the collateral deposits based
on the market against the value of the loan. The SCCP will also
guarantee the settlement of the loan transaction by executing
Alternative Cash Settlement, which is equivalent to a Deemed
Sale, in the event of a default by the Borrower. In the event of a
default however, the SCCP will charge the defaulting Borrower a
Compensation Value which shall then be credited to the Lender.
The SCCP will also allow Manual Recall which would enable the
Lender, the Borrower or even the SCCP, for risk management
purposes, to recall the securities earlier than the agreed duration.
The SCCP will use the Collateral Management module of the
CCCS system, which was recently approved by the SEC, for the
marking to market of the collateral deposits and the loaned
securities.
Listed Companies with Websites
Company Website Company Website
1   A Brown Company, Inc. www.xavierestates.com.ph 66   Empire East Land Holdings, Inc. www.empire-east.com
2   A. Soriano Corporation www.anscor.com.ph 67   Energy Development (EDC) Corporation www.energy.com.ph
3   Abacus Consolidated Resources and Holdings, Inc. www.abacusconsolidated.com 68   Eton Properties Philippines, Inc. www.etonpropertiesphilippines.com
4   Aboitiz Equity Ventures, Inc. www.aboitiz.com 69   Euro-Med Laboratories Phil., Inc. www.euromedlab.net
5   Aboitiz Power Corporation www.aboitizpower.com 70   Export and Industry Bank, Inc. www.exportbank.com.ph
6   Aboitiz Transport System (ATSC) Corporation www.atsc.com.ph 71   F & J Prince Holdings Corporation www.fjprince.com
7   ABS-CBN Broadcasting Corporation www.ir.abs-cbn.com 72   Far Eastern University, Incorporated www.feu.edu.ph
8 ABS-CBN Holdings Corporation www.abs-cbnpdr.com 73   Federal Resources Investment Group, Inc. www.federalchemicals.com.ph
9   Acesite (Phils.) Hotel Corporation www.waterfronthotels.net 74   Fil-Estate Corporation www.fil-estatecorp.com
10   Active Alliance, Incorporated www.activeallianceinc.com 75   Fil-Estate Land, Inc. www.fil-estateland.com
11   AgriNurture, Inc. www.ani.com.ph 76   Filinvest Development Corporation www.filinvestgroup.com
12   AJO.net Holdings, Inc. www.ajonet.com 77   Filinvest Land, Inc. www.filinvestland.com
13   Alaska Milk Corporation www.alaskamilk.com.ph 78   Filsyn Corporation http://filsyncorp.com
14   Alcorn Gold Resources Corporation www.alcorngold.com 79   First Abacus Financial Holdings Corporation www.firstabacusfinancial.com
15   Alliance Global Group, Inc. www.allianceglobalinc.com 80   First Gen Corporation www.firstgen.com.ph
16   Alliance Tuna International, Inc. www.alliancetuna.com.ph 81   First Metro Investment Corporation www.firstmetro.com.ph
17   Allied Banking Corporation www.alliedbank.com.ph 82   First Philippine Holdings Corporation www.fphc.com
18   Alsons Consolidated Resources, Inc. www.acr.com.ph 83   GEOGRACE Resources Philippines, Inc. www.geograce.com
19   Anchor Land Holdings, Inc. www.anchorlandholdings.com 84   Ginebra San Miguel, Inc. www.ginebrasanmiguel.com
20   Anglo Philippine Holdings Corporation www.anglophil.com 85   Globe Telecom, Inc. www.globe.com.ph
21   APC Group, Inc. www.apcaragorn.com 86   GMA Holdings, Inc. www.gmanetwork.com
22   Apex Mining Co., Inc. www.apexmining.com 87   GMA Network, Inc. www.gmanetwork.com
23   Araneta Properties, Inc. www.aranetaproperties.com 88   Grand Plaza Hotel Corporation www.grandplazahotelcorp.com

Annual Report 2009

24   Arthaland Corporation www.arthaland.com 89   Highlands Prime, Inc. www.highlandsprime.com
25   Asian Terminals, Inc. www.asianterminals.com.ph 90   Holcim Philippines, Inc. www.holcim.com.ph
26   AsiaTrust Development Bank, Inc. www.asiatrustbank.com 91   House of Investments, Inc. www.hoi.com.ph
27   Atlas Consolidated Mining and Development Corp. www.atlasphilippines.com 92   Information Capital Technology Ventures, Inc. www.ictv.ph
28   ATN Holdings, Inc. www.atnholdings.com 93 Integrated Micro-Electronics, Inc. www.imiphil.com
29   Atok-Big Wedge Co., Inc. www.atokbigwedge.com 94   International Container Terminal Services, Inc. www.ictsi.com
30   ATR KimEng Financial Corporation www.atrkimengfinancial.com 95   Interport Resources Corporation www.interportresources.com
31   Ayala Corporation www.ayala.com.ph 96   Ionics, Inc. www.ionicsgroup.com
32   Ayala Land, Inc. http://ir.ayalaland.com.ph 97 IP E-Game Ventures, Inc. www.e-games.com.ph
33   Bacnotan Consolidated Industries, Inc. www.bcii.com.ph 98   iPeople, inc. www.ipeople.com.ph
39
34   Banco de Oro Unibank, Inc. www.bdo.com.ph 99   IPVG Corporation http://ipvg.com

The Philippine Stock Exchange, Inc.

35   Banco Filipino Savings & Mortgage Bank www.bancofilipino.com 100   I-Remit, Inc. www.myiremit.com
36   Bank of the Philippine Islands www.bpiexpressonline.com 101   Island Information & Technology, Inc. www.iiti.ph
37   Bankard, Inc. www.bankard.com 102   ISM Communications Corporation www.ismcomm.com
38   Basic Energy Corporation www.basicenergy.ph 103   JG Summit Holdings, Inc. www.jgsummit.com.ph
39   BDO Leasing and Finance, Inc. www.leasing.bdo.com.ph 104   Jollibee Foods Corporation www.jollibee.com.ph
40   Belle Corporation www.bellecorp.com 105   Jolliville Holdings Corporation www.joh.ph
41   Benguet Corporation www.benguetcorp.com 106   JTH Davies Holdings, Inc. www.jthdavies.com
42   Benpres Holdings Corporation www.benpres-holdings.com 107   Keppel Philippines Marine, Inc. www.keppelphilippinesmarineinc.com
43   BHI Holdings, Inc. www.bhi-holdings.com 108   Keppel Philippines Properties, Inc. www.keppelland.com.sg
44   Boulevard Holdings, Inc. www.boulevardholdings.com 109 Leisure and Resorts World Corporation www.lrwc.com.ph
45   Cebu Holdings, Incorporated www.cebuholdings.com 110   Lepanto Consolidated Mining Company www.lepantomining.com
46   Cebu Property Ventures and Development Corp. www.cpvdc.com 111   Liberty Telecoms Holdings, Inc. www.wi-tribe.ph
47   Central Azucarera de Tarlac, Inc. www.cat-luisita.com 112   LMG Chemicals Corp. www.chemphil.com.ph
48   Centro Escolar University www.ceu.edu.ph 113   Lodestar Investment Holdings Corporation www.lodestarinvestment.com
49   Century Peak Metal Holdings Corporation www.centurypeakmetals.com 114   Lorenzo Shipping Corporation www.lorenzoshipping.com
50   Chemical Industries of the Philippines, Inc. www.chemphil.com.ph 115   Mabuhay Holdings Corporation www.mabuhayholdingscorp.com
51   Chemrez Technologies, Inc. www.chemrez.com 116   Mabuhay Vinyl Corporation www.mvc.com.ph
52   China Banking Corporation www.chinabank.ph 117   Macondray Plastics, Inc. www.macondray.com
53   Chinatrust (Phils.) Commercial Bank Corp. www.chinatrust.com.ph 118   MacroAsia Corporation www.macroasiacorp.com
54   CitisecOnline.com, Inc. www.citiseconline.com 119   Manchester International Holdings Unlimited Corp. www.pharmaindustries.com
55   City & Land Developers, Incorporated www.citylandcondo.com 120   Manila Broadcasting Company www.mbcsales.com.ph
56   Cityland Development Corporation www.citylandcondo.com 121   Manila Bulletin Publishing Corporation www.mb.com.ph
57   Citystate Savings Bank, Inc. www.citystatesavings.com 122   Manila Electric Company www.meralco.com.ph
58   Concrete Aggregates Corporation www.cac.com.ph 123   Manila Jockey Club, Inc. www.manilajockey.com
59   Cosmos Bottling Corporation www.cosmosbottling.com.ph 124   Manila Mining Corporation www.manilamining.com
60   DFNN Inc. www.dfnn.com 125   Manila Water Company, Inc. www.manilawater.com
61   Digital Telecommunications Phils., Inc. www.digitel.ph 126   Manulife Financial Corporation www.manulife.com
62   DMCI Holdings, Inc. www.dmciholdings.com 127   Mariwasa SIAM Holdings, Inc. www.mariwasa.com
63   East Asia Power Resources Corporation www.powr.com 128   MEDCO Holdings, Inc. www.medco.com.ph
64   EasyCall Communications Philippines, Inc. www.easycall.com.ph 129   Megaworld Corporation www.megaworldcorp.com
65   EEI Corporation www.eei.com.ph 130   Metro Pacific Investments Corporation www.mpic.com.ph
 Company Website Company Website
131   Metropolitan Bank & Trust Company www.metrobank.com.ph 172   Robinsons Land Corporation www.robinsonsland.com
132   MIC Holdings Corporation www.micholdings.com.ph 173   Roxas and Company, Inc. www.roxascompany.com.ph
133   MUSX Corporation www.musxcorp.com 174   Roxas Holdings, Inc. www.rhi-cadp.com.ph
134   National Reinsurance Corporation of the Philippines www.nrcp.com.ph 175   San Miguel Brewery, Inc. www.sanmiguelbrewery.com.ph
135   NiHao Mineral Resources International, Inc. www.nihaometals.com 176   San Miguel Corporation www.sanmiguel.com.ph
136   Oriental Peninsula Resources Group, Inc. www.orientalpeninsula.com 177   San Miguel Properties, Inc. www.sanmiguelproperties.com.ph
137   Oriental Petroleum and Minerals Corporation www.opmc.com.ph 178   San Miguel Pure Foods Company, Inc. www.sanmiguelpurefoods.com
138   Pacific Online Systems Corporation www.loto.com.ph 179   Seafront Resources Corporation www.seafrontresources.com.ph
139   PAL Holdings, Inc. www.philippineairlines.com 180   Security Bank Corporation www.securitybank.com.ph
140   Panasonic Manufacturing Philippines Corporation www.panasonic.com.ph 181   Semirara Mining Corporation www.semiraramining.com
141   Pancake House, Inc. www.pancakehouse.com.ph 182   Shang Properties, Inc. www.shangproperties.com
142   Paxys, Inc. www.paxys.com 183   SM Development Corporation www.smdevelopment.com
143   Pepsi-Cola Products Philippines, Inc. www.pepsiphilippines.com 184   SM Investments Corporation www.sminvestments.com
The Philippine Stock Exchange, Inc.

144   PetroEnergy Resources Corporation www.petroenergy.com.ph 185   SM Prime Holdings, Inc. www.smprime.com
145   Petron Corporation www.petron.com 186   Solid Group, Inc. www.solidgroup.com.ph
146   Philcomsat Holdings Corporation www.philcomsat.com.ph 187   South China Resources, Inc. www.southchinaresourcesinc.com.ph
147   Philex Mining Corporation www.philexmining.com.ph 188   Southeast Asia Cement Holdings, Inc. www.lafarge.com
148   Philippine Bank of Communications www.pbcom.com.ph 189   Splash Corporation www.splash.com.ph
149   Philippine Estates Corporation www.phes.net 190 Sta. Lucia Land, Inc. www.stalucialand.com.ph
150   Philippine Long Distance Telephone Company www.pldt.com.ph 191   Sun Life Financial Inc. www.sunlife.com
151   Philippine National Bank www.pnb.com.ph 192   Suntrust Home Developers, Inc. www.suntrusthomedevelopers.com
152   Philippine National Construction Corporation www.pncc.com.ph 193   Supercity Realty Development Corporation www.supercity.com.ph
153   Philippine Racing Club, Inc. www.santa-ana-park.com 194   Swift Foods, Inc. www.myswiftfoods.com.ph
154   Philippine Realty and Holdings Corporation http://philrealtycorp.com 195   Tanduay Holdings, Inc. www.tanduay.com
155   Philippine Savings Bank www.psbank.com.ph 196   The Philippine Stock Exchange, Inc. www.pse.com.ph
156   Philippine Seven Corporation www.7-eleven.com.ph 197   The Philodrill Corporation www.philodrill.com
157 Philippine Telegraph and Telephone Corporation www.ptt.net.ph 198   TKC Steel Corporation www.tkcsteel.com
40 158 Philippine Tobacco Flue-Curing and Redrying Corp. www.ptfc-brc.com 199   Trans-Asia Oil and Energy Development Corp. www.transasia-energy.com
159   Philippine Trust Company www.philtrustbank.com 200   Transpacific Broadband Group International Inc. www.tbgi.net.ph
Annual Report 2009

160   PhilWeb Corporation www.philweb.com.ph 201   Union Bank of the Philippines, Inc. www.unionbankph.com
161   Phoenix Petroleum Philippines, Inc. www.phoenixphilippines.com 202   United Paragon Mining Corporation www.unitedparagon.com
162   Pilipino Telephone Corporation www.piltel.com.ph 203   Universal Robina Corporation www.urc.com.ph
163   PNOC Exploration Corporation www.pnoc-ec.com.ph 204   Uniwide Holdings, Inc. www.uni-wide.com
164   Polar Property Holdings Corporation www.polar.com.ph 205   Vantage Equities, Inc. www.ivantage.ph
165   Premiere Entertainment Philippines, Inc. www.pepinc.ph 206   Victorias Milling Company, Inc. www.victoriasmilling.com
166   Prime Gaming Philippines, Inc. www.pgpi.com.ph 207   Vista Land & Lifescapes, Inc. www.vistaland.com.ph
167   Prime Orion Philippines, Inc. www.primeorion.com 208   Vitarich Corporation www.vitarich.com
168   Republic Glass Holdings Corporation www.repglass.net 209 Vulcan Industrial and Mining Corporation www.vulcanminingandpetroleum.webs.com
169   RFM Corporation www.rfmfoods.com 210   Waterfront Philippines, Incorporated www.waterfronthotels.net
170   Ripple E-Business International, Inc. www.iripple.com 211   Wellex Industries, Incorporated www.wellex.com.ph
171   Rizal Commercial Banking Corporation www.rcbc.com 212   Zeus Holdings, Inc. www.zeusholdingsinc.com
as of March 31, 2010
Listed Companies
without Websites
Company
1   Abr a M i n i n g a n d I n d u s t r i a l C o r p o r a t i o n
2   AGP I n d u s t r i a l C o r p o r a t i o n
3   Asia A m a l g a m a t e d H o l d i n g s C o r p o r a t i o n
4   Bog o - M e d e l l i n M i l l i n g C o m p a n y , I n c.
5   Crow n E q u i t i e s , I n c.
6   Cyb e r B a y C o r p o r a t i o n
7   Diz o n C o p p e r - S i l ve r M i n e s , I n c.
8   Eve r - G o t e s c o R e s o u r c e s a n d H o l d i n g s , I n c.
9   Fili p i n o F u n d , I n c.
10   For u m Pa c i f i c , I n c.
11   Got e s c o L a n d , I n c.
12   Imp e r i a l R e s o u r c e s , I n c.
13   Kep p e l P h i l i p p i n e s H o l d i n g s , I n c.
14   Libe r t y F l o u r M i l l s , I n c.
15   Ma ka t i F i n a n c e C o r p o r a t i o n
16   Ma r s t e e l C o n s o l i d a t e d , I n c.
17   Met r o A l l i a n c e H o l d i n g s & E q u i t i e s C o r p .
18   Met r o Pa c i f i c To l l w a y s C o r p o r a t i o n
19   Min e r a l e s I n d u s t r i a s C o r p o r a t i o n
20   MJ C I n ve s t m e n t s C o r p o r a t i o n
21   Mo n d r a g o n I n t e r n a t i o n a l P h i l i p p i n e s , I n c o r p o r a t e d
22   MR C A l l i e d I n d u s t r i e s , I n c.

Annual Report 2009

23   Nex t S t a g e , I n c.
24   Omi c o C o r p o r a t i o n
25   Pac i f i c a , I n c.
26   PIC O P R e s o u r c e s , I n c.
27   Pri m e M e d i a H o l d i n g s , I n c.
28   Pri m e t ow n P r o p e r t y G r o u p, I n c.
29   Pri m ex C o r p o r a t i o n
30   Pry c e C o r p o r a t i o n
31   Rep u b l i c C e m e n t C o r p o r a t i o n 41
32   San i t a r y Wa r e s M a n u f a c t u r i n g C o r p o r a t i o n

The Philippine Stock Exchange, Inc.

33   Sin o p h i l C o r p o r a t i o n
34   SPC Powe r C o r p o r a t i o n
35   Ste n i e l M a n u f a c t u r i n g C o r p o r a t i o n
36   UEM D eve l o p m e n t P h i l s . , I n c.
37   Uni o i l R e s o u r c e s & H o l d i n g s C o m p a n y , I n c.
38   Uni ve r s a l R i g h t f i e l d P r o p e r t y H o l d i n g s , I n c.
39   Viv a n t C o r p o r a t i o n
40   Wis e H o l d i n g s , I n c
as of March 31, 2010
 Listed Companies’ Certifications
on Compliance with Corporate
Governance Manuals (CGMs)
With Without With Without
Company Submission Submission Company Submission Submission
1   A Brown Company, Inc. 63   Cosmos Bottling Corporation
2   A. Soriano Corporation 64   Crown Equities, Inc.
3   Abacus Consolidated Resources and Holdings, Inc. 65   Cyber Bay Corporation
The Philippine Stock Exchange, Inc.

4   Aboitiz Equity Ventures, Inc. 66   DFNN Inc.

5   Aboitiz Power Corporation 67   Digital Telecommunications Phils., Inc.
6   Aboitiz Transport System (ATSC) Corporation 68   Dizon Copper-Silver Mines, Inc.
7   Abra Mining and Industrial Corporation 69   DMCI Holdings, Inc.
8   ABS-CBN Broadcasting Corporation 70   East Asia Power Resources Corporation
9   ABS-CBN Holdings Corporation 71   EasyCall Communications Philippines, Inc.
10   Acesite (Phils.) Hotel Corporation 72   EEI Corporation
11 Active Alliance, Inc. 73   Empire East Land Holdings, Inc.
12   AGP Industrial Corporation 74   Energy Development (EDC) Corporation
13   AgriNurture, Inc. 75   Eton Properties Philippines, Inc.
14   AJO.net Holdings, Inc. 76   Euro-Med Laboratories Phil., Inc.
15   Alaska Milk Corporation 77   Ever-Gotesco Resources and Holdings, Inc.
16   Alcorn Gold Resources Corporation 78   Export and Industry Bank, Inc.
17   Alliance Global Group, Inc. 79   F & J Prince Holdings Corporation
42 18   Alliance Tuna International, Inc. 80   Far Eastern University, Incorporated
19   Allied Banking Corporation 81   Federal Resources Investment Group, Inc.
Annual Report 2009

20   Alsons Consolidated Resources, Inc. 82   Fil-Estate Corporation

21   Anchor Land Holdings, Inc. 83   Fil-Estate Land, Inc.
22   Anglo Philippine Holdings Corporation 84   Filinvest Development Corporation
23   APC Group, Inc. 85   Filinvest Land, Inc.
24   Apex Mining Co., Inc. 86   Filipino Fund, Inc.
25   Araneta Properties, Inc. 87   Filsyn Corporation
26   Arthaland Corporation 88   First Abacus Financial Holdings Corporation
27   Asia Amalgamated Holdings Corporation 89   First Gen Corporation
28   Asian Terminals, Inc. 90   First Metro Investment Corporation
29 AsiaTrust Development Bank, Inc. 91   First Philippine Holdings Corporation
30   Atlas Consolidated Mining and Development Corporation 92   Forum Pacific, Inc.
31   ATN Holdings, Inc. 93   GEOGRACE Resources Philippines, Inc.
32   Atok-Big Wedge Co., Inc. 94   Ginebra San Miguel, Inc.
33   ATR KimEng Financial Corporation 95   Globe Telecom, Inc.
34   Ayala Corporation 96   GMA Holdings, Inc.
35   Ayala Land, Inc. 97   GMA Network, Inc.
36   Bacnotan Consolidated Industries, Inc. 98   Gotesco Land, Inc.
37   Banco de Oro Unibank, Inc. 99   Grand Plaza Hotel Corporation
38   Banco Filipino Savings & Mortgage Bank 100   Highlands Prime, Inc.
39   Bank of the Philippine Islands 101   Holcim Philippines, Inc.
40   Bankard, Inc. 102   House of Investments, Inc.
41   Basic Energy Corporation 103   Imperial Resources, Inc.
42   BDO Leasing and Finance, Inc. 104   Information Capital Technology Ventures, Inc.
43   Belle Corporation 105 Integrated Micro-Electronics, Inc.
44   Benguet Corporation 106   International Container Terminal Services, Inc.
45   Benpres Holdings Corporation 107   Interport Resources Corporation
46   BHI Holdings, Inc. 108   Ionics, Inc.
47   Bogo-Medellin Milling Company, Inc. 109   iPeople, inc.
48   Boulevard Holdings, Inc. 110   IPVG Corporation
49   Cebu Holdings, Incorporated 111   I-Remit, Inc.
50   Cebu Property Ventures and Development Corporation 112   Island Information & Technology, Inc.
51   Central Azucarera de Tarlac, Inc. 113   ISM Communications Corporation
52   Centro Escolar University 114   JG Summit Holdings, Inc.
53   Century Peak Metals Holdings Corporation 115   Jollibee Foods Corporation
54   Chemical Industries of the Philippines, Inc. 116   Jolliville Holdings Corporation
55   Chemrez Technologies, Inc. 117   JTH Davies Holdings, Inc.
56   China Banking Corporation 118   Keppel Philippines Holdings, Inc.
57   Chinatrust (Phils.) Commercial Bank Corporation 119   Keppel Philippines Marine, Inc.
58   CitisecOnline.com, Inc. 120   Keppel Philippines Properties, Inc.
59   City & Land Developers, Incorporated 121   Leisure & Resorts World Corporation
60   Cityland Development Corporation 122   Lepanto Consolidated Mining Company
61   Citystate Savings Bank, Inc. 123   Liberty Flour Mills, Inc.
62   Concrete Aggregates Corporation 124   Liberty Telecoms Holdings, Inc.
 With Without With Without
Company Submission Submission Company Submission Submission
125   LMG Chemicals Corp. 197   Republic Cement Corporation
126   Lodestar Investment Holdings Corporation 198   Republic Glass Holdings Corporation
127   Lorenzo Shipping Corporation 199   RFM Corporation
128   Mabuhay Holdings Corporation 200   Ripple E-Business International, Inc.
129   Mabuhay Vinyl Corporation 201   Rizal Commercial Banking Corporation
130   Macondray Plastics, Inc. 202   Robinsons Land Corporation
131   MacroAsia Corporation 203   Roxas and Company, Inc.
132   Makati Finance Corporation 204   Roxas Holdings, Inc.
133   Manchester International Holdings Unlimited Corporation 205   San Miguel Brewery, Inc.
134   Manila Broadcasting Company 206   San Miguel Corporation
135   Manila Bulletin Publishing Corporation 207   San Miguel Properties, Inc.
136   Manila Electric Company 208   San Miguel Pure Foods Company, Inc.
137   Manila Jockey Club, Inc. 209   Sanitary Wares Manufacturing Corporation
138   Manila Mining Corporation 210   Seafront Resources Corporation
139   Manila Water Company, Inc. 211   Security Bank Corporation
140   Manulife Financial Corporation 212   Semirara Mining Corporation
141   Mariwasa SIAM Holdings, Inc. 213   Shang Properties, Inc.
142   Marsteel Consolidated, Inc. 214   Sinophil Corporation
143   MEDCO Holdings, Inc. 215   SM Development Corporation
144   Megaworld Corporation 216   SM Investments Corporation
145   Metro Alliance Holdings & Equities Corp. 217   SM Prime Holdings, Inc.
146   Metro Pacific Investments Corporation 218   Solid Group, Inc.
147   Metro Pacific Tollways Corporation 219   South China Resources, Inc.
148   Metropolitan Bank & Trust Company 220   Southeast Asia Cement Holdings, Inc.
149   MIC Holdings Corporation 221   SPC Power Corporation
150   Minerales Industrias Corporation 222   Splash Corporation
151   MJC Investments Corporation 223   Sta. Lucia Land, Inc.
152   Mondragon International Philippines, Incorporated 224   Steniel Manufacturing Corporation
153   MRC Allied Industries, Inc. 225   Sun Life Financial Inc.

Annual Report 2009

154   MUSX Corporation 226   Suntrust Home Developers, Inc.
155   National Reinsurance Corporation of the Philippines 227   Supercity Realty Development Corporation
156   NextStage, Inc. 228   Swift Foods, Inc.
157   NiHao Mineral Resources International, Inc. 229   Tanduay Holdings, Inc.
158   Omico Corporation 230   The Philippine Stock Exchange, Inc.
159   Oriental Peninsula Resources Group, Inc. 231   The Philodrill Corporation
160   Oriental Petroleum and Minerals Corporation 232   TKC Steel Corporation
161   Pacific Online Systems Corporation 233   Trans-Asia Oil and Energy Development Corp.
162   Pacifica, Inc. 234   Transpacific Broadband Group International. Inc. 43
163   PAL Holdings, Inc. 235   UEM Development Phils., Inc.

The Philippine Stock Exchange, Inc.

164   Panasonic Manufacturing Philippines Corporation 236   Unioil Resources & Holdings Company, Inc.
165   Pancake House, Inc. 237   Union Bank of the Philippines, Inc.
166   Paxys, Inc. 238   United Paragon Mining Corporation
167   Pepsi-Cola Products Philippines, Inc. 239   Universal Rightfield Property Holdings, Inc.
168   PetroEnergy Resources Corporation 240   Universal Robina Corporation
169   Petron Corporation 241   Uniwide Holdings, Inc.
170   Philcomsat Holdings Corporation 242   Vantage Equities, Inc.
171   Philex Mining Corporation 243   Victorias Milling Company, Inc.
172   Philippine Bank of Communications 244   Vista Land & Lifescapes, Inc.
173   Philippine Estates Corporation 245   Vitarich Corporation
174   Philippine Long Distance Telephone Company 246   Vivant Corporation
175   Philippine National Bank 247   Vulcan Industrial & Mining Corporation
176   Philippine National Construction Corporation 248   Waterfront Philippines, Incorporated
177   Philippine Racing Club, Inc. 249   Wellex Industries, Incorporated
178   Philippine Realty and Holdings Corporation 250   Wise Holdings, Inc.
179   Philippine Savings Bank 251   Zeus Holdings, Inc.
180   Philippine Seven Corporation
181   Philippine Telegraph and Telephone Corporation
182   Philippine Tobacco Flue-Curing & Redrying Corporation
183   Philippine Trust Company
184   PhilWeb Corporation
185   Phoenix Petroleum Philippines, Inc.
186   PICOP Resources, Inc.
187   Pilipino Telephone Corporation
188   PNOC Exploration Corporation
189   Polar Property Holdings Corporation
190   Premiere Entertainment Philippines, Inc.
191   Prime Gaming Philippines, Inc.
192   Prime Media Holdings, Inc.
193   Prime Orion Philippines, Inc.
194   Primetown Property Group, Inc.
195   Primex Corporation
196   Pryce Corporation
 PSE Board of Directors
The Philippine Stock Exchange, Inc.

Hans B. Sicat
Chairman Francisco Ed. Lim1
Chairman, Corporate President and Alejandro T. Yu
Governance Committee Chief Executive Officer Director and Treasurer
44
Annual Report 2009

Eduardo L. David
Independent Director
Member, Corporate
Governance Committee

Ismael G. Cruz Eddie T. Gobing

Director Director

Omelita J. Tiangco2
Director
Member,
Eusebio H. Tanco Audit and Corporate Estrella C. Elamparo3
Director Governance Committees Director
Member, Audit Committee

John Aloysius S. Bernas
Independent Director
Member, Audit and Corporate
Governance Committees
Amor C. Iliscupidez
Director Anabelle L. Chua
Member, Audit Committee Director
Member, Corporate Member,
Governance Committee
Audit and Corporate
David O. Chua
Governance Committees Director

Annual Report 2009

45

The Philippine Stock Exchange, Inc.

Amor C. Iliscupidez
Director
Member,
Audit and Corporate
Governance Committees
Vicente L. Panlilio Wilfred D. Son Keng Po
Independent Director
Director
Chairman, Audit Committee

Ma. Vivian Yuchengco

Director
Member,
Audit and Corporate
Governance Committees

1. September 16, 2004 to February 15, 2010

2. August 9, 2006 to March 10, 2010
3. March 10, 2010 to present
4. May 13, 2009 to October 30, 2009
5. November 11, 2009 to present
6. May 13, 2009 to October 30, 2009
Atty. Aissa V. Encarnacion
William L. Ang Assistant Corporate Secretary 4
Corporate Secretary 6
Corporate Secretary 5
 Management
Committee
The Philippine Stock Exchange, Inc.

Francisco Ed. Lim1

President and
Chief Executive Officer

Roel A. Refran
Vice President and General
Counsel
Roy Joseph M. Rafols2 Concurrent Head,
Senior Vice President and
Issuer Regulation Division 4
Chief Operating Officer
46
Val Antonio B. Suarez3
Senior Vice President and
Annual Report 2009

Chief Operating Officer

Jonathan DC. Moreno5

Vice President and Head,
Corporate Governance Office
Chief Risk Officer

Susan L. Serad Enrico M. Trinidad

Vice President and Head,
Vice President and Head,
Capital Markets Development Division
Technology Division
Concurrent Head,
Chief Technology Officer
Marietta U. Tan Corporate Services Division
Vice President and
Head, Finance and
Investments Division

Renee D. Rubio
SCCP Chief Operating Officer

Jinky A. Alora
Assistant Vice President and
Head, Trading Participants
Regulation Department
OIC, Market
Regulation Division
Rachelle C. Blanch
Assistant Vice President
and Head, Market
Operations Division
Marsha Matilde R. Pepino6
Assistant Vice President
and Internal Audit Officer
1. September 16, 2004 to February 15, 2010
2. March 19, 2007 to September 30, 2009
3. January 18, 2010 to present
4. January 13, 2010 to present
5. November 1, 2007 to February 28, 2010
6. October 1, 2007 to February 28, 2010

*Joseph P. San Pedro (not in photo)

VP and Head, Market Regulation Division
May 16, 2007 to October 1, 2009
Department & Section Heads
Officers-in-Charge

Armando T. Arturo Jhoanna Maria

Head, Trading Carlos C. Luarte Roxanne S. Modesto
Operations, Ayala Head, Trading Assistant Vice
Operations, Tektite Tristan G. Gillego President and Head,
Precilla S. Sandoval
Josielyn S. Arellano Head, Infrastructure Assistant Vice President Human Resources
OIC, Human Resources and System and Head, Market Data and Administration
Management Section Administration Business Department Department

Annual Report 2009

47

The Philippine Stock Exchange, Inc.

John Benette B. Mamañgun
Edwin G. Oliveros Head, Corporate Planning
Head, Market and Research Section
Surveillance Department
Marie Grace A. Santos Elizabeth S. Lacson Leonardo G. Quinitio Jose Antonio S. Vilar
OIC, Prosecution and Head, Public and Investor Head, Market Education Head, Marketing
Enforcement Department Relations Section Department Services Department

Jo Ann G. Bautista
Head, Business
Development Department
Janet A. Encarnacion
Head, Disclosure
Department
Eliza S. Rodriguez Elisa L. Benavidez Marsha Angelyn M.
Head, Accounting Head, Budget and Resurreccion
Head, Listings
Department Treasury Department
Department
 SCCP Board of
Directors and Officers
The Philippine Stock Exchange, Inc.

Jose C. Vitug Wilfred D. Son Keng Po

Chairman Francisco Ed. Lim1 Director and Treasurer
President and
Chief Executive Officer

48 Roberto A. Atendido
Director
Annual Report 2009

Alejandro T. Yu
Director

Anabelle L. Chua
Emmanuel O. Bautista Director
Director
John Aloysius S. Bernas
Director

Eddie T. Gobing
Director

Estrella C. Elamparo3
Director

Cornelio T. Peralta
Director
Omelita J. Tiangco2
Director

1. September 16, 2004 to February 15, 2010

2. July 1, 2009 to March 9, 2010 Renee D. Rubio Atty. Aissa V. Encarnacion
3. March 9, 2010 to present Chief Operating Officer Corporate Secretary
Information Required by the
Securities Regulation Code
General Nature and Scope of Business
of Registrant and its Subsidiaries
The Philippine Stock Exchange, Inc. was incorporated on July 14,
1992 as a non-stock corporation. The Company became a stock
corporation on August 3, 2001. On December 15, 2003, pursuant
to the demutualization mandate of Republic Act No. 8799, or the
Securities Regulation Code, the Company’s outstanding capital
stock was listed by way of introduction. On February 18, 2004,
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 date
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
and settlement agency for SCCP-eligible trades executed through
the facilities of the PSE. SCCP is responsible for (a) synchronizing
the settlement of funds for transactions of clearing members
and the transfer of securities through Delivery versus Payment
(DVP) clearing; (b) the administration of the Clearing and
Trade Guaranty Fund (CTGF) and guaranteeing the settlement
of trade though the implementation of its Fails Management
System in the event of a Trading Participant’s default; and (c)
performance of Risk Management and Monitoring to ensure final
and irrevocable settlement.
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 Philippine Securities
Settlement Corporation (PSSC). As of December 31, 2009, the
Company is a stockholder of record of 1,311,439 shares, or 20.98
percent, of all of the issued and outstanding shares of PDSHC.
Properties
The Company is the registered owner of offices at the PSE Centre
in Ortigas Center, Pasig City, and the PSE Plaza along Ayala
Avenue, Makati City.
In addition, over a seven-year period beginning January
2005, the outstanding shares of Crescent West Development
Corporation (CWDC), a subsidiary of Fort Bonifacio Development
Corporation (FBDC) and the registered owner of a 2,182 square
meter lot in Bonifacio Global City, will be transferred to the
Company. In June 2007, the donation of all remaining CWDC
shares was deferred pending negotiations among the Company,
FBDC and Ayala Land, Inc. for the joint development of an iconic
office building in Bonifacio Global City for the relocation of the
Company’s headquarters, majority of the management offices
Annual Report 2009
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 49
Stock Exchange, Inc.
The Philippine Stock Exchange, Inc.
Stock Prices
The high and low prices of the Company’s shares in the stock
exchange for each quarter of fiscal years 2008 and 2009 are
as follows:
2009 High Low
Q1 P174.00 P116.00
Q2 P320.00 P170.00
Q3 P350.00 P255.00
Q4 P357.50 P300.00
2008 High Low
Q1 P515.00 P275.00
Q2 P372.00 P275.00
Q3 P400.00 P290.00
Q4 P360.00 P109.00
The high and low prices of the Company’s shares in January -
March 2010 are P320.00 and P242.00, respectively. The stock price
of the Company closed at P310.00 on March 11, 2010.
 Holders
The number of shareholders of record as of February 26, 2010 is 249. Total shares
outstanding as of February 26, 2010 is 30,555,005 shares with a par value of P1.00.

The top 20 holders as of February 26, 2010 are as follows:

Stockholder Nationality No. of Shares Amount Percentage

PCD Nominee Corp. Filipino 20,242,886 20,242,886.00 66.2506
PCD Nominee Corp. Other Alien 4,043,139 4,043,139.00 13.2323
G.D. Tan & Company, Inc Fililpino 100,300 100,300.00 0.33
The Philippine Stock Exchange, Inc.

Ansaldo Godinez & Company, Inc. Filipino 100,000 100,000.00 0.33

HSBC Securities (Phils.), Inc. Dutch 100,000 100,000.00 0.33
A.T. De Castro Sec. Corp. Filipino 100,000 100,000.00 0.33
Christfund Securities (Phils.), Inc. Other Alien 100,000 100,000.00 0.33
Rashid Hussain Securities (Phils.), Inc. Other Alien 100,000 100,000.00 0.33
Nomura Securities Phils., Inc. Dutch 100,300 100,300.00 0.33
Sincere Securities Corporation Filipino 100,000 100,000.00 0.33
BDO Securities Corporation Filipino 100,000 100,000.00 0.33
Phil-Progress Securities Corporation Filipino 100,000 100,000.00 0.33
Mandarin Securities Corp. Filipino 100,000 100,000.00 0.33
Highland Securities, Phils., Inc. Filipino 100,000 100,000.00 0.33
50 CLSA Philippines, Inc. Dutch 100,300 100,300.00 0.33
Koo Kiao Go Filipino 100,000 100,000.00 0.33
Annual Report 2009

Chong, Jose Filipino 100,000 100,000.00 0.33

Chan, Vicky l. Filipino 100,000 100,000.00 0.33
Chia Kim Teck Singaporean 100,000 100,000.00 0.33
Chilip, Christopher L. Filipino 100,000 100,000.00 0.33

Dividends
Dividends per Share:

P8.80 in 2007.
P20.00 in 2008.
P8.00 in 2009.
P10.00 in 2010,
broken down as P3.40 regular dividend and P6.60 special cash dividend to stockholders
of record as of March 25, 2010 and payable on April 21, 2010.

Dividend Policy
The Company adopts a policy for the declaration of a regular cash dividend out of
the unrestricted retained earnings equivalent to 50 percent of the Company’s audited
net income. The declaration of dividends is dependent on the cash flow and financial
condition of the Company.

Recent Sale of Unregistered/Exempt Securities

On December 2, 2008, pursuant to the PSE Employee Stock Purchase Plan, the Company
offered 50,000 shares to eligible employees. A total of 42,240 shares were actually
subscribed by the employees.

For the year 2009, the Company offered 57.760 shares to eligible employees, of which,
57,748 were availed of. To date, a total of 99,988 shares were actually subscribed by
the employees.
 Report of the
Market Integrity
Board

The Market Integrity Board (“MIB”) is pleased to report to the
stockholders of the Exchange the results of its oversight of the
regulatory functions of the Market Regulation Division (“MRD”).
The MIB is the Exchange’s independent body exercising oversight
authority and supervision over the regulatory activities of the
MRD, including the promulgation of rules relating to audit,
compliance and surveillance, adaptation for local conditions of
best practices on governance among trading participants, and
such other measures necessary to strengthen the self-regulatory
functions of the Exchange. As an autonomous body, the decisions
and actions of the MIB are not subject to review by the Exchange’s
The year 2009 also saw the MIB spearheading the move for a possible
spin-off of the regulatory functions of the Exchange, currently
undertaken by the MRD, into a separate company to further ensure
the regulatory independence of the Exchange’s audit, surveillance
and compliance unit. In moving for the spin-off, the MIB recognized
the need to establish the independence of the regulatory function
of the Exchange thereby allowing the Exchange to devote more
time in managing its trading and business functions.
Except for the hiatus in the MIB during October of last year, brought
about by the expiration of the term of the members thereof and a
change in its composition, the MIB remained true to its mandate,

Annual Report 2009

board of directors but may be appealed directly to the Securities
and Exchange Commission (“SEC”). It has five regular members,
including the chairman and the vice chairman, three of whom are not
affiliated with the trading participants and include an independent
director of the Exchange. The remaining two members are trading
participant representatives who are not directors of the Exchange.
Except for the chairman, all MIB members have alternates.
carrying out its supervisory authority and enforcing the relevant
rules and regulations of the Exchange. Nevertheless, the MIB
continues to acknowledge the need to monitor and oversee the
MRD in its regulation of the market, especially in these times of
uncertainty. In continuing its mandate, the MIB once more commits
itself, as it has always done so unfalteringly ever since its creation,
to raise the bar for investor protection and to promote and preserve
51
the market’s integrity.

The Philippine Stock Exchange, Inc.

In the year that just passed, the MIB successfully approved and
endorsed to the Exchange’s board of directors as well as to the
SEC, rules designed to further enhance investor protection and
promote market transparency. These included rules for additional
disclosure obligation of trading participants, as well as the rules
for prosecution fund assistance to claimants of failed trading
participants, the latter intended to extend financial assistance to
claimants in the form of subsidy for legal costs.

The MIB also resolved 29 cases, upon appeal by the relevant party. CORNELIO T. PERALTA
These included appeals on the regular audit findings of the MRD, Chairman
investor complaints, and cases of unusual trading activities and
trading irregularities. It was noted that the rules frequently violated
by trading participants were on books and records, segregation
of broker and dealer function, order ticket, the code of conduct
and professional ethics for traders and salesmen, and the rules
governing the trading of PSE shares.
 Report of the
Corporate Governance
Committee
The Philippine Stock Exchange, Inc.
On behalf of the Corporate Governance Committee (“The
Committee”), I am pleased to report the steps undertaken by this
Committee to further strengthen the Philippine Stock Exchange
as an institution and promote good governance to all of its
stakeholders. In conducting its work, the Committee is guided by
the goals of improving efficiency in operations, finding the means
necessary to increase confidence of investors and adding value for
all its stakeholders through promoting good governance practices.
Towards this end, the Committee approved and monitored the
52 implementation of some internal systems and measures that will
improve the delivery of services to all our stakeholders. These
Annual Report 2009
measures include risk management, the review of existing rules and
proposed changes and the implementation of quarterly reviews.
The committee also worked with the Audit Committee in initiating
a review and update of the PSE’s integrated work manual.
Coming out of the financial crisis, the Committee instructed the
Corporate Governance Office (CGO) to review the risk management
system of the Exchange. After discussions with the different
departments, the CGO submitted the top risks facing the company
with corresponding measures to address these risks. The Committee
will carefully monitor that these risks be reviewed regularly and
that the Exchange shall manage its risks effectively.
The work on the integrated work manual is a complementary step
to minimizing operational risks and improving efficiencies within
the PSE. Once completed and implemented, it should also ensure
consistency of processes, and smoother linkages across operating
units.
The Corporate Governance Committee also approved proposed
amendments to the Listing and Disclosure Rules and the Corporate
Governance Guidelines. These proposals aim to provide more
relevant information to enable investors to come up with well-
informed investment decisions. The Corporate Governance
Committee also approved the draft Board Protocol and the List of
Matters Reserved for the Board to serve as a manual for the conduct
of the Board. These documents are now under review by the Board.
The Committee is also pleased to report that the approved quarterly
review system has been effective in achieving its goal of improving
the efficiency of the operations of the Exchange. This system
allowed departments to work more closely and coordinate well to
implement the projects.
Over the past year, the Committee supported and approved the
participation of the Exchange in several international conferences
such as the OECD Asian Roundtable on Corporate Governance and
the Asian and Oceanian Stock Exchanges Federation (AOSEF) Task
Force on Corporate Governance during its general membership
meeting in April 2009. These conferences allowed the Exchange
to build good relationships with international entities such as
other exchanges, the OECD, the IFC, the World Bank, AGCA, and
international fund managers. These conferences will help toward
increasing confidence in the Exchange by providing information to
the public about the Exchange’s initiatives in improving the stock
market environment. One of these initiatives is the creation of the
Maharlika Board which has gained a lot of support, both locally and
internationally.
The Committee acknowledges that there are challenges to be
addressed and a lot of work still needs to be done. The Committee
believes that a strong governance structure, coupled with good
working relationships with our stakeholders, is the key to achieving
its goals.
HANS B. SICAT
Chairman
Report of the
Audit Committee
For the Year Ended December 31, 2009

The Audit Committee reports the following:

1. An independent director chairs the Audit Committee;

2. The Committee had eleven (11) meetings during the year; more than majority of the members were present in all these meetings;
3. The Committee recommended to the Board of Directors the re-appointment of SGV & Co. as independent external auditor for
2009, based on the review of their performance and qualifications, including consideration of management’s recommendation;
4. The Committee reviewed and discussed the annual audited consolidated financial statements of the Exchange, and its subsidiary,
SCCP, including Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year
ended December 31, 2009, with management and SGV & Co.

These activities were performed in the following context:

• Management has the primary responsibility for the financial statements and the reporting process.
• SGV & Co. is responsible for expressing an opinion on the conformity of the Company’s annual audited consolidated financial
statements with Philippine Financial Reporting Standards.
• The Committee discussed and approved the overall scope and the respective audit of SGV & Co. The Committee also discussed the

Annual Report 2009

results of their audits and their assessment of the Company’s internal controls and the overall quality of the financial reporting
process.

Based on the reviews and discussions undertaken, and subject to the limitations on our roles and responsibilities referred to above, the
Audit Committee recommended to the Board of Directors the inclusion of the Company’s audited consolidated financial statements as
of and for the year ended December 31, 2009 in the Company’s Annual Report to the Stockholders and for filing with the Securities and
Exchange Commission.
53
April 5, 2010.

The Philippine Stock Exchange, Inc.

VICENTE L. PANLILIO
Committee Chair
JOHN ALOYSIUS S. BERNAS ANABELLE L. CHUA
Member Member

EUSEBIO H. TANCO
Member
AMOR C. ILISCUPIDEZ OMELITA J. TIANGCO
Member Member

MA. VIVIAN YUCHENGCO

Member
 Statement of Management’s
Responsibility for
Financial Statements
The Philippine Stock Exchange, Inc.

54
Annual Report 2009
Independent Auditors’ Report
The Stockholders and the Board of Directors
The Philippine Stock Exchange, Inc.
Philippine Stock Exchange Centre
Exchange Road, Ortigas Center, Pasig City

We have audited the accompanying financial statements of The Philippine Stock Exchange, Inc. and Subsidiary (the Group) and of
The Philippine Stock Exchange, Inc. (the Parent Company), which comprise the consolidated and the parent company balance
sheets as at December 31, 2009 and 2008, and the consolidated and the parent company statements of comprehensive income,
the consolidated and the parent company statements of changes in equity and the consolidated and the parent company
statements of cash flows for each of the three years in the period ended December 31, 2009, and a summary of significant
accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine
Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Annual Report 2009

Our responsibility is to express an opinion on these 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 whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are 55
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal

The Philippine Stock Exchange, Inc.

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 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 financial statements present fairly, in all material respects, the financial position of the Group and of the Parent
Company as of December 31, 2009 and 2008, and their financial performance and their cash flows for each of the three years in the
period ended December 31, 2009 in accordance with Philippine Financial Reporting Standards.

SYCIP GORRES VELAYO & CO.

Ramon D. Dizon
Partner
CPA Certificate No. 46047
SEC Accreditation No. 0077-AR-2
Tax Identification No. 102-085-577
PTR No. 2087532, January 4, 2010, Makati City

March 10, 2010

 Balance Sheets
THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
BALANCE SHEETS

December 31
Consolidated Parent Company
2009 2008 2009 2008
The Philippine Stock Exchange, Inc.

ASSETS
Current Assets
Cash and cash equivalents (Notes 4, 5 and 6) P
= 393,730,584 P
= 132,488,824 P
= 325,470,441 P
= 60,132,769
Short-term available-for-sale
investments (Notes 4, 5 and 7) 315,897,605 367,632,653 200,111,264 313,479,536
Receivables (Notes 3, 4, 5 and 8) 57,950,759 65,077,459 125,525,969 101,413,271
Other current assets 23,753,389 19,300,575 23,337,481 19,244,840
Total Current Assets 791,332,337 584,499,511 674,445,155 494,270,416
Noncurrent Assets
Long-term available-for-sale
investments (Notes 3, 4, 5 and 7) 610,472,899 841,401,285 585,899,723 801,554,240
Property and equipment (Notes 3 and 9) 509,183,881 452,186,356 507,764,447 450,581,422
Investment in a subsidiary (Note 10) – – 69,545,393 69,545,393
56 Investment in an associate (Note 10) 116,099,824 106,818,647 112,546,550 106,818,647
Investments of clearing and trade guaranty fund (Note 11) 455,395,814 402,288,607 – –
Annual Report 2009

Retirement asset (Note 21) 10,784,612 – 10,784,612 –

Other assets - net (Note 12) 48,824,763 52,658,270 38,555,196 37,098,165
Total Noncurrent Assets 1,750,761,793 1,855,353,165 1,325,095,921 1,465,597,867
P
= 2,542,094,130 P
= 2,439,852,676 P
= 1,999,541,076 P
= 1,959,868,283

LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities
Accounts payable, accrued expenses and
other current liabilities (Notes 4, 5 and 13) P
= 108,328,702 P
= 102,794,022 P
= 100,844,491 P
= 96,056,414
Income tax payable 29,375,340 9,377,173 12,091,077 –
Deferred fees (Note 14) 28,685,719 12,317,389 28,685,719 12,317,389
Total Current Liabilities 166,389,761 124,488,584 141,621,287 108,373,803
Noncurrent Liability
Retirement liability (Notes 21 and 26) 4,893,952 6,032,793 – 2,473,635
Due to clearing and trade guaranty fund (Note 11) 455,395,814 402,288,607 – –
Total Noncurrent Liabilities 460,289,766 408,321,400 – 2,473,635
Total Liabilities 626,679,527 532,809,984 141,621,287 110,847,438
EQUITY
Capital stock (Notes 1 and 16) 30,651,918 30,555,024 30,651,918 30,555,024
Additional paid-in capital (Notes 16 and 26) 999,881,273 976,786,993 999,881,273 976,786,993
Treasury stock (Note 16) (68,000,007) (68,000,008) (68,000,007) (68,000,008)
Deposit for future stock subscription (Note 16) 736,434 5,422,349 736,434 5,422,349
Retained earnings:
Unappropriated (Note 16) 451,771,509 487,206,261 394,191,441 429,703,012
Donated capital (Notes 15 and 16) 387,637,585 387,637,585 387,637,585 387,637,585
Appropriated (Note 16) 71,000,000 71,000,000 71,000,000 71,000,000
Net unrealized gain on available-for-sale
investments (Note 7) 41,735,891 16,434,488 41,821,145 15,915,890
Total Equity 1,915,414,603 1,907,042,692 1,857,919,789 1,849,020,845
P
= 2,542,094,130 P
= 2,439,852,676 P
= 1,999,541,076 P
= 1,959,868,283

See accompanying Notes to Financial Statements.

Statements of
Comprehensive Income
THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31

Consolidated Parent Company
2009 2008 2007 2009 2008 2007
OPERATING REVENUES
Listing-related fees
Listing P
= 66,200,050 P
= 172,452,851 P
= 358,491,345 P
= 66,200,050 P
= 172,452,851 P
= 358,491,345
Listing maintenance 134,812,097 166,904,665 97,752,833 134,812,097 166,904,665 97,752,833
Processing 1,080,000 1,190,000 2,680,714 1,080,000 1,190,000 2,680,714
Service fees 177,575,563 136,404,494 238,956,952 – – –
Trading-related fees (Note 23)
Transaction 66,205,348 58,837,694 111,245,368 66,205,348 58,837,694 111,245,368
Block sales 33,210,297 17,552,424 22,579,875 33,210,297 17,552,424 22,579,875
Data feed 21,624,533 19,161,384 17,423,662 21,624,533 19,161,384 17,423,662
Subscription 18,243,119 16,754,391 15,418,514 18,243,119 16,754,391 15,418,514
Other revenues (Notes 11 and 23) 16,446,607 12,420,375 16,492,324 15,820,600 12,155,627 14,605,413
535,397,614 601,678,278 881,041,587 357,196,044 465,009,036 640,197,724
OTHER INCOME
Interest (Notes 17 and 23) 86,830,346 110,703,140 112,337,583 79,748,423 102,760,664 106,005,703
Dividend income 30,950 33,250 26,750 108,230,950 190,032,900 9,426,750
Foreign exchange gain - net – 16,697,591 – – 16,697,591 –

Annual Report 2009

86,861,296 127,433,981 112,364,333 187,979,373 309,491,155 115,432,453
TOTAL REVENUES 622,258,910 729,112,259 993,405,920 545,175,417 774,500,191 755,630,177
EXPENSES
Compensation and other related staff
costs (Notes 18, 21 and 23) 166,807,334 128,965,716 144,148,927 153,715,388 116,315,810 131,521,851
Occupancy costs (Note 19) 41,080,545 41,400,935 38,328,510 38,372,426 38,318,344 37,961,100
Professional fees 38,647,028 33,367,156 18,165,602 30,934,728 27,721,913 17,460,849
Depreciation (Note 9) 34,011,571 29,249,503 29,280,536 33,344,558 28,531,764 27,972,115
Repairs and maintenance 12,864,360 11,702,342 7,747,275 9,922,455 9,572,565 5,615,466 57
Telecommunication 9,783,270 9,643,725 8,455,207 9,783,270 9,643,725 8,455,207

The Philippine Stock Exchange, Inc.

Taxes and licenses 5,397,000 5,978,986 4,875,234 4,206,380 4,154,004 4,070,567
Amortization of computer software (Note 12) 5,290,538 5,271,530 5,214,254 – – –
Travel and transportation 4,754,430 8,536,990 6,599,933 4,647,912 8,387,727 6,586,996
Office expenses 4,102,250 3,281,973 3,074,064 3,887,411 3,146,262 2,921,784
Membership development 3,760,071 4,701,691 7,832,872 3,760,071 4,701,691 7,832,872
Foreign exchange loss - net 3,565,395 – 21,105,029 3,565,395 – 21,105,029
Donation and contributions 1,560,000 2,200,000 15,600,000 1,200,000 2,200,000 15,600,000
Market development 1,072,638 3,879,037 7,656,545 1,072,638 3,879,037 7,656,545
Provision for (recovery of) impairment
losses (Notes 7, 8 and 10) (4,701,263) 1,945,170 10,120,044 (4,701,263) 5,959,859 10,120,044
Other expenses 16,525,279 11,062,042 15,201,062 14,690,999 10,792,467 13,363,157
344,520,446 301,186,796 343,405,094 308,402,368 273,325,168 318,243,582
EQUITY IN NET INCOME (LOSS) OF AN
ASSOCIATE (Note 10) 3,553,274 (4,014,689) – – – –
INCOME BEFORE INCOME TAX 281,291,738 423,910,774 650,000,826 236,773,049 501,175,023 437,386,595
PROVISION FOR INCOME TAX (Note 20) 73,548,490 132,431,384 216,581,696 29,106,620 93,780,612 139,483,197
NET INCOME 207,743,248 291,479,390 433,419,130 207,666,429 407,394,411 297,903,398
OTHER COMPREHENSIVE INCOME
Net gain (loss) on available-for-sale
investments (Note 7) 25,301,403 (41,171,692) (20,544,740) 25,902,255 (41,943,038) (20,289,294)
TOTAL COMPREHENSIVE INCOME P
= 233,044,651 P
= 250,307,698 P
= 412,874,390 P
= 233,568,684 P
= 365,451,373 P
= 277,614,104

Basic/Diluted Earnings Per

Share (Note 22) P
= 6.81 P
= 9.55 P
= 14.18

See accompanying Notes to Financial Statements.

 58
Annual Report 2009 The Philippine Stock Exchange, Inc.

Statements INC. AND

THE PHILIPPINE STOCK EXCHANGE,of SUBSIDIARY
Changes in Equity
STATEMENTS OF CHANGES IN EQUITY

Consolidated
Retained Earnings Net Unrealized
Additional Deposit for Gain on
Paid-in Future Stock Donated Available
Capital Stock Capital Treasury Subscription Capital for-Sale
(Notes 1 (Notes 16 Stock (Notes 16 Unappropriated (Notes 15 Appropriated Investments
and 16) and 26) (Note 16) and 26) (Note 16) and 16) (Note 16) (Note 7) Total
Balances at January 1, 2009 P = 30,555,024 P = 976,786,993 (P
= 68,000,008) P
= 5,422,349 P
= 487,206,261 P
= 387,637,585 P
= 71,000,000 P
= 16,434,488 P = 1,907,042,692
Total comprehensive income – – – – 207,743,248 – – 25,301,403 233,044,651
Issuance of capital stock 96,894 22,883,921 – (5,422,349) – – – – 17,558,466
Share-based payment – 210,359 – 736,434 – – – – 946,793
Reissuance of treasury stock – – 1 – – – – – 1
Cash dividends – – – – (243,178,000) – – – (243,178,000)
Balances at
December 31, 2009 P
= 30,651,918 P = 999,881,273 (P
= 68,000,007) P
= 736,434 P
= 451,771,509 P
= 387,637,585 P
= 71,000,000 P
= 41,735,891 P
= 1,915,414,603

Balances at January 1, 2008 P

= 15,277,513 P
= 976,506,942 (P
= 2) P
=– P
= 584,554,480 P
= 387,637,585 P
= 3,000,000 P
= 57,606,180 P= 2,024,582,698
Total comprehensive income – – – – 291,479,390 – – (41,171,692) 250,307,698
Acquisition of treasury stock – – (68,000,006) – – – – – (68,000,006)
Appropriation during the year – – – – (68,000,000) – 68,000,000 – –
Share-based payment – 280,051 – 5,422,349 – – – – 5,702,400
Cash dividends – – – – (305,550,098) – – – (305,550,098)
Stock dividends 15,277,511 – – – (15,277,511) – – – –
Balances at
December 31, 2008 P
= 30,555,024 P
= 976,786,993 (P
= 68,000,008) P
= 5,422,349 P
= 487,206,261 P
= 387,637,585 P
= 71,000,000 P
= 16,434,488 P
= 1,907,042,692

Balances at January 1, 2007 P

= 15,277,513 P
= 976,506,942 (P
= 1) P
=– P
= 285,577,394 P
= 387,637,585 P
= 3,000,000 P
= 78,150,920 P= 1,746,150,353
Total comprehensive income – – – – 433,419,130 – – (20,544,740) 412,874,390
Acquisition of treasury stock – – (1) – – – – – (1)
Cash dividends – – – – (134,442,044) – – – (134,442,044)
Balances at
December 31, 2007 P
= 15,277,513 P
= 976,506,942 (P
= 2) P
=– P
= 584,554,480 P
= 387,637,585 P
= 3,000,000 P
= 57,606,180 P
= 2,024,582,698

See accompanying Notes to Financial Statements.

 -2-

Parent Company
Net
Retained Earnings Unrealized
Additional Deposit for Gain on
Paid-in Future Stock Donated Available
Capital Stock Capital Treasury Subscription Capital for-Sale
(Notes 1 (Notes 16 Stock (Notes 16 Unappropriated (Notes 15 Appropriated Investments
and 16) and 26) (Note 16) and 26) (Note 16) and 16) (Note 16) (Note 7) Total
Balances at January 1, 2009 P = 30,555,024 P = 976,786,993 (P
= 68,000,008) P
= 5,422,349 P
= 429,703,012 P
= 387,637,585 P
= 71,000,000 P
= 15,915,890 P = 1,849,020,845
Total comprehensive income – – – – 207,666,429 – – 25,905,255 233,571,684
Issuance of capital stock 96,894 22,883,921 – (5,422,349) – – – – 17,558,466
Share-based payment – 210,359 – 736,434 – – – – 946,793
Reissuance of treasury stock – – 1 – – – – – 1
Cash dividends – – – – (243,178,000) – – – (243,178,000)
Balances at
December 31, 2009 P
= 30,651,918 P = 999,881,273 (P
= 68,000,007) P
= 736,434 P
= 394,191,441 P
= 387,637,585 P
= 71,000,000 P
= 41,821,145 P
= 1,857,919,789

Balances at January 1, 2008 P

= 15,277,513 P
= 976,506,942 (P
= 2) P
=– P
= 411,136,212 P
= 387,637,585 P
= 3,000,000 P
= 57,858,928 P= 1,851,417,178
Total comprehensive income – – – – 407,394,411 – – (41,943,038) 365,451,373
Acquisition of treasury stock – – (68,000,006) – – – – – (68,000,006)
Appropriation during the year (68,000,000) 68,000,000 – –
Share-based payment – 280,051 – 5,422,349 – – – 5,702,400
Cash dividends – – – – (305,550,100) – – – (305,550,100)
Stock dividends 15,277,511 – – – (15,277,511) – – – –
Balances at
December 31, 2008 P
= 30,555,024 P
= 976,786,993 (P
= 68,000,008) P
= 5,422,349 P
= 429,703,012 P
= 387,637,585 P
= 71,000,000 P
= 15,915,890 P
= 1,849,020,845

Balances at January 1, 2007 P

= 15,277,513 P
= 976,506,942 (P
= 1) P
=– P
= 247,674,858 P
= 387,637,585 P
= 3,000,000 P
= 78,148,222 P= 1,708,245,119
Total comprehensive income – – – – 297,903,398 – – (20,289,294) 277,614,104
Acquisition of treasury stock – – (1) – – – – – (1)
Cash dividends – – – – (134,442,044) – – – (134,442,044)
Balances at
December 31, 2007 P
= 15,277,513 P
= 976,506,942 (P
= 2) P
=– P
= 411,136,212 P
= 387,637,585 P
= 3,000,000 P
= 57,858,928 P
= 1,851,417,178

See accompanying Notes to Financial Statements.

The Philippine Stock Exchange, Inc.

59

Annual Report 2009

 Statements of Cash Flows
STATEMENTS OF CASH FLOWS
Years Ended December 31
Consolidated Parent Company
2009 2008 2007 2009 2008 2007
CASH FLOWS FROM OPERATING
ACTIVITIES
Income before income tax P
= 281,291,738 P
= 423,910,774 P
= 650,000,826 P
= 236,773,049 P
= 501,175,023 P
= 437,386,595
Adjustments for:
The Philippine Stock Exchange, Inc.

Interest income (86,830,346) (110,703,140) (112,337,583) (79,748,423) (102,760,664) (106,005,703)

Depreciation (Note 9) 34,011,571 29,249,503 29,280,536 33,344,558 28,531,764 27,972,115
Amortization of computer
software (Note 12) 5,290,538 5,271,530 5,214,254 – – –
Provision for (reversal of) impairment
losses (Notes 7 and 8) (4,701,263) 1,945,170 10,120,044 (4,701,263) 5,959,859 10,120,044
Share-based payment expense (Note 26) 4,368,827 285,186 – 4,267,534 250,047 –
Equity in net loss (income) of an
associate (Note 10) (3,553,274) 4,014,689 – – – –
Loss (gain) on disposal of property
and equipment (207,301) 422,754 – (207,301) 422,754 –
Realized gain on sale of available-for
sale investments (49,487) – – (17,611) – –
Operating income before working capital
changes 229,621,003 354,396,466 582,278,077 189,710,543 433,578,783 369,473,051
60 Changes in operating assets and liabilities:
Decrease (increase) in:
Annual Report 2009

Receivables 10,887,958 118,044,599 (45,493,081) (19,862,058) 65,527,311 (44,729,066)

Other current assets (4,452,814) (11,736,112) (4,655,450) (4,092,641) (11,781,752) (4,660,286)
Increase (decrease) in accounts
payable, accrued expenses and
other current liabilities 21,801,717 (113,750,900) 38,457,200 21,156,407 (113,109,447) 36,971,631
Net cash generated from operations 257,857,864 346,954,053 570,586,746 186,912,251 374,214,895 357,055,330
Interest received 82,142,448 113,312,408 114,926,535 74,536,004 104,183,622 106,410,685
Income taxes paid (53,550,323) (133,096,730) (223,160,792) (17,015,543) (85,957,405) (151,438,671)
Net cash provided by operating activities 286,449,989 327,169,731 462,352,489 244,432,712 392,441,112 312,027,344
CASH FLOWS FROM INVESTING
ACTIVITIES
Proceeds from sale/maturities of:
Available-for-sale investments (Note 7) 493,311,295 542,350,696 361,975,659 439,723,900 347,292,234 338,475,612
Property and equipment (Note 9) 2,530,969 3,325,427 873,085 2,530,969 3,075,427 873,085
Short-term investments – 312,700,000 – – 312,700,000 –
Acquisitions of:
Available-for-sale investments (Note 7) (185,396,971) (659,642,273) (319,701,250) (84,878,245) (566,581,728) (119,892,904)
Property and equipment (Note 9) (93,332,764) (171,372,753) (33,969,525) (92,851,251) (170,025,190) (33,147,288)
Computer software (Note 12) – (285,116) (128,116) – – –
Short-term cash investments – – (312,700,000) – – (312,700,000)
Decrease (increase) in other assets (13,380,484) 12,257 9,230,243 (14,680,139) (1,051,551) 14,048,138
Additional investment in an
associate (Note 10) – (34,350,000) – – (34,350,000) –
Net cash provided by (used in) investing
activities 203,732,045 (7,261,762) (294,419,904) 249,845,234 (108,940,808) (112,343,357)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share-based
payment (Note 26) 14,237,725 5,422,349 – 14,237,725 5,422,349 –
Acquisition (reissuance) of treasury
stock (Note 16) 1 (68,000,000) – 1 (68,000,000) –
Dividend payments (Note 16) (243,178,000) (309,966,882) (133,454,045) (243,178,000) (309,966,882) (133,454,045)
Net cash used in financing activities (228,940,274) (372,544,533) (133,454,045) (228,940,274) (372,544,533) (133,454,045)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 261,241,760 (52,636,564) 34,478,540 265,337,672 (89,044,229) 66,229,942
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 132,488,824 185,125,388 150,646,848 60,132,769 149,176,998 82,947,056
CASH AND CASH EQUIVALENTS AT
END OF YEAR P
= 393,730,584 P
= 132,488,824 P
= 185,125,388 P
= 325,470,441 P
= 60,132,769 P
= 149,176,998

See accompanying Notes to Financial Statements.

Notes to the
Financial Statements
THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
NOTES TO FINANCIAL STATEMENTS

1. Corporate Information

The Philippine Stock Exchange, Inc. (the Parent Company or the Exchange) was incorporated in the Philippines on July 14,
1992 as a non-stock corporation primarily to provide and maintain a convenient and suitable market for the exchange,
purchase and sale of all types of securities and other instruments.

On August 8, 2001, the Parent Company was converted from a non-stock corporation to a stock corporation (demutualization)
with an authorized capital stock of P
= 36.8 million divided into 36.8 million shares at a par value of P
= 1.00 per share as prescribed
by Republic Act (RA) No. 8799 entitled “Securities Regulation Code” (SRC) and pursuant to a conversion plan approved by the
Securities and Exchange Commission (SEC).

The salient features of the demutualization plan approved by the SEC on August 3, 2001 include, among others, the following:

a. Conversion of the Parent Company into a stock corporation by amending its Articles of Incorporation and by-laws;

b. Subscription of each member of 50,000 shares at P = 1.00 per share. The remaining balance of the Membership
Contributions account of P
= 277.4 million shall be treated as additional paid-in capital;

c. Issuance of trading rights to brokers in recognition of the existing seat ownership by the brokers;

Annual Report 2009

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 61
corporation.

The Philippine Stock Exchange, Inc.

On January 28, 2004, the Parent Company offered 6,077,505 unissued shares to the private sector as part of on-going efforts
to comply with SRC’s mandate regarding the ownership of an Exchange (see Note 15). Gross proceeds from the private
placement offering amounted to P = 726.3 million, inclusive of additional paid-in capital of P
= 720.2 million representing premium
over the par value of the common stock. Expenses related to the offering amounting to P = 21.1 million were recorded as a
reduction of the additional paid-in capital.

Securities Clearing Corporation of the Philippines (SCCP), a 100% owned subsidiary of the Exchange, is a domestic
corporation organized to carry out and strictly implement the following functions: (1) Delivery-versus-Payment trade settlement;
(2) fails management and administration of the Clearing and Trade Guaranty Fund (CTGF); and (3) risk monitoring and
management.

To ensure compliance of clearing members, SCCP is authorized by the SEC to impose fines and penalties and other sanctions
as approved by SCCP’s board of directors (BOD).

SCCP was given a temporary license to operate by the SEC and started its commercial operations on January 3, 2000. On
January 15, 2002, the SEC approved SCCP’s request for a permanent license as a clearing agency subject to its compliance
with the requirements of Section 42 of the SRC entitled “Registration of Clearing Agency.”

The registered office address of the Parent Company is Philippine Stock Exchange Centre, Exchange Road, Ortigas Center,
Pasig City.

The accompanying financial statements were authorized for issue by the BOD on March 10, 2010.
 2. Summary of Significant Accounting Policies

Statement of Compliance
The consolidated financial statements of the Parent Company and SCCP (collectively referred to as the Group) and of the
Parent Company have been prepared in compliance with Philippine Financial Reporting Standards (PFRS).
The Philippine Stock Exchange, Inc.

Basis of Preparation
The accompanying financial statements have been prepared on a historical cost basis, except for available-for-sale (AFS)
investments and the investments of CTGF that have been measured at fair value. The financial statements are presented in
Philippine Peso (P
= ), which is also the presentation and functional currency of the Parent Company.

Basis of Consolidation
The consolidated financial statements include the financial statements of the Parent Company and its wholly owned subsidiary,
SCCP, and are prepared for the same reporting year as the Parent Company, using consistent accounting policies.

All significant intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group
transactions are eliminated in full in the consolidation.

62 Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue
to be consolidated until the date that such control ceases. Control is achieved where the Group has the power to govern the
Annual Report 2009

financial and operating policies of an entity so as to obtain benefit from its activities.

Changes in Accounting Policies and Disclosures

The accounting policies adopted are consistent with those of the previous financial year, except for the following new and
amended PFRS and Philippine Interpretations which the Group has adopted starting January 1, 2009:

 PAS 1, Presentation of Financial Statements (Revised)

 PAS 23, Borrowing Costs (Revised)
 PFRS 8, Operating Segments
 Philippine Interpretation IFRIC 13, Customer Loyalty Programmes
 Philippine Interpretation IFRIC 16, Hedges of a Net Investment in a Foreign Operation
 Philippine Interpretation IFRIC 18, Transfers of Assets from Customers
 PAS 32 and PAS 1 Amendments - Puttable Financial Instruments and Obligations Arising on Liquidation
 PFRS 1 and PAS 27 Amendments - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
 PFRS 2 Amendment - Vesting Conditions and Cancellations
 PFRS 7 Amendments - Improving Disclosures about Financial Instruments
 Philippine Interpretation IFRIC 9 and PAS 39 Amendments, Embedded Derivatives
 Improvements to PFRSs (2008)

Standards or interpretations that have been adopted and that are deemed to have an impact on the financial statements or
performance of the Group are described below:

 PAS 1, Presentation of Financial Statements, separates owner and non-owner changes in equity. The statement of
changes in equity includes only details of transactions with owners, with non-owner changes in equity presented in a
reconciliation of each component of equity. In addition, the standard introduces the statement of comprehensive income: it
presents all items of recognized income and expense, either in one single statement, or in two linked statements. The
Group has elected to present one single statement comprehensive income.

 PFRS 7 Amendments - Improving Disclosures about Financial Instruments, require additional disclosures about fair value
measurement and liquidity risk. Fair value measurements related to items recorded at fair value are to be disclosed by
source of inputs using a three level fair value hierarchy, by class, for all financial instruments recognized at fair value. In
addition, a reconciliation between the beginning and ending balance for level 3 fair value measurements is now required,
as well as significant transfers between levels in the fair value hierarchy. The amendments also clarify the requirements
for liquidity risk disclosures with respect to derivative transactions and financial assets used for liquidity management. The
fair value measurement disclosures are presented in Note 5.
 PFRS 8, Operating Segments, replaces PAS 14, Segment Reporting, adopts a full management approach to reporting
segment information. The information reported would be that which management uses internally for evaluating the
performance of operating segments and allocating resources to those segments. The Group determined that the operating
segments under PFRS 8 are similar to the business segments previously identified under PAS 14. Hence, adoption of this
standard did not have any effect on the financial statements of the Group.

 Improvements to PFRSs (2008). The omnibus amendments to PFRSs issued in 2008 were issued primarily with a view to
removing inconsistencies and clarifying wording. There are separate transitional provisions for each standard. The
adoption of the improvements resulted in changes in accounting policies but did not have any impact on the financial
position or performance of the Group.

Standards Issued but not yet Effective

Standards, interpretations, amendments to standards and improvements to standards issued but not effective up to the date of
issuance of the Group’s financial statements are listed below.

Standards, Interpretations and Amendments to Standards

 PFRS 3, Business Combinations (Revised) and PAS 27, Consolidated and Separate Financial Statements (Amended), is
effective for annual periods beginning on or after July 1, 2009. PFRS 3 (Revised) introduces significant changes in the
accounting for business combinations occurring after this date. Changes affect the valuation of non-controlling interest,

Annual Report 2009

the accounting for transaction costs, the initial recognition and subsequent measurement of a contingent consideration and
business combinations achieved in stages. These changes will impact the amount of goodwill recognized, the reported
results in the period that an acquisition occurs and future reported results. PAS 27 (Amended) requires that a change in
the ownership interest of a subsidiary (without loss of control) is accounted for as a transaction with owners in their
capacity as owners. Therefore, such transactions will no longer give rise to goodwill, nor will it give rise to a gain or loss.
Furthermore, the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of
control of a subsidiary. The changes by PFRS 3 (Revised) and PAS 27 (Amended) will affect future acquisitions or loss of
control of subsidiaries and transactions with non-controlling interests. PFRS 3 (Revised) will be applied prospectively
while PAS 27 (Amended) will be applied retrospectively with a few exceptions. 63

The Philippine Stock Exchange, Inc.

 Philippine Interpretation IFRIC 15, Agreement for Construction of Real Estate, is effective for annual periods beginning on
or after January 1, 2012. It covers accounting for revenue and associated expenses by entities that undertake the
construction of real estate directly or through subcontractors. It requires that revenue on construction of real estate be
recognized only upon completion, except when such contract qualifies as construction contract to be accounted for under
PAS 11, Construction Contracts, or involves rendering of services in which case revenue is recognized based on stage of
completion. Contracts involving provision of services with the construction materials and where the risks and reward of
ownership are transferred to the buyer on a continuous basis will also be accounted for based on stage of completion.

 Philippine Interpretation IFRIC 17, Distributions of Non-Cash Assets to Owners, is effective for annual periods beginning
on or after July 1, 2009 with early application permitted. It provides guidance on how to account for non-cash distributions
to owners. The interpretation clarifies when to recognize a liability, how to measure it and the associated assets, and
when to derecognize the asset and liability.

 PAS 39 Amendment - Eligible Hedged Items, is effective for annual periods beginning on or after July 1, 2009. It clarifies
that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial instrument
as a hedged item. This also covers the designation of inflation as a hedged risk or portion in particular situations.

 PFRS 2 Amendments - Group Cash-settled Share-based Payment Transactions, is effective for annual periods beginning
on or after January 1, 2010. It clarifies the scope and the accounting for group cash-settled share-based payment
transactions.

Improvements to PFRSs
The omnibus amendments to PFRSs issued in 2009 were issued primarily with a view to removing inconsistencies and
clarifying wording. The amendments are effective for annual periods beginning January 1, 2010 except as otherwise stated.

 PFRS 2, Share-based Payment, clarifies that the contribution of a business on formation of a joint venture and
combinations under common control are not within the scope of PFRS 2 even though they are out of scope of PFRS 3
(Revised). The amendment is effective for financial years on or after July 1, 2009.
  PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations, clarifies that the disclosures required in respect of
non-current assets and disposal groups classified as held for sale or discontinued operations are only those set out in
PFRS 5. The disclosure requirements of other PFRS only apply if specifically required for such non-current assets or
discontinued operations.
The Philippine Stock Exchange, Inc.

 PFRS 8, Operating Segments, clarifies that segment assets and liabilities need only be reported when those assets and
liabilities are included in measures that are used by the chief operating decision maker.

 PAS 1, Presentation of Financial Statements, clarifies that the terms of a liability that could result, at anytime, in its
settlement by the issuance of equity instruments at the option of the counterparty do not affect its classification.

 PAS 7, Statement of Cash Flows, explicitly states that only expenditure that results in a recognized asset can be classified
as a cash flow from investing activities.

 PAS 17, Leases, removes the specific guidance on classifying land as a lease. Prior to the amendment, leases of land
were classified as operating leases. The amendment now requires that leases of land are classified as either ‘finance’ or
‘operating’ in accordance with the general principles of PAS 17. The amendments will be applied retrospectively.

64  PAS 36, Impairment of Assets, clarifies that the largest unit permitted for allocating goodwill, acquired in a business
combination, is the operating segment as defined in PFRS 8 before aggregation for reporting purposes.
Annual Report 2009

 PAS 38, Intangible Assets, clarifies that if an intangible asset acquired in a business combination is identifiable only with
another intangible asset, the acquirer may recognize the group of intangible assets as a single asset provided the
individual assets have similar useful lives. Also clarifies that the valuation techniques presented for determining the fair
value of intangible assets acquired in a business combination that are not traded in active markets are only examples and
are not restrictive on the methods that can be used.

 PAS 39, Financial Instruments: Recognition and Measurement, clarifies the following:

a. that a prepayment option is considered closely related to the host contract when the exercise price of a prepayment
option reimburses the lender up to the approximate present value of lost interest for the remaining term of the host
contract;

b. that the scope exemption for contracts between an acquirer and a vendor in a business combination to buy or sell an
acquiree at a future date applies only to binding forward contracts, and not derivative contracts where further actions
by either party are still to be taken; and

c. that gains or losses on cash flow hedges of a forecast transaction that subsequently results in the recognition of a
financial instrument or on cash flow hedges of recognized financial instruments should be reclassified in the period
that the hedged forecast cash flows affect profit or loss.

 Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives, clarifies that it does not apply to possible
reassessment at the date of acquisition, to embedded derivatives in contracts acquired in a business combination between
entities or businesses under common control or the formation of joint venture.

 Philippine Interpretation IFRIC 16, Hedge of a Net Investment in a Foreign Operation, states that, in a hedge of a net
investment in a foreign operation, qualifying hedging instruments may be held by any entity or entities within the group,
including the foreign operation itself, as long as the designation, documentation and effectiveness requirements of PAS 39
that relate to a net investment hedge are satisfied.

The Group does not expect the adoption of these new standards, interpretations, amendments to standards and improvements
to standards to have a significant impact on its 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 Instruments - Initial Recognition and Subsequent Measurement

Date of Recognition. The Group recognizes a financial asset or a financial liability on its balance sheet when, and only when,
the entity becomes a party to the contractual provisions of the instrument. All regular way purchases and sales of financial
assets are recognized on the trade date, which is the date that the Group commits to purchase the asset. Regular way
purchases and sales are purchases or sales of financial assets that require delivery of assets within period generally
established by regulation or convention in the market place.

Financial assets are classified into the following categories: financial asset at fair value through profit or loss (FVPL), held-to-
maturity (HTM) investments, loans and receivables, and AFS investments. Financial liabilities are classified either as financial
liabilities at FVPL or other financial liabilities at amortized cost. The classification depends on the purpose for which the
investments were acquired and whether they are quoted in an active market. The Group determines the classification at initial
recognition and, where allowed and appropriate, re-evaluates this designation at every reporting date.

Annual Report 2009

Initial Recognition. Financial assets and liabilities are recognized initially at fair value. Transaction costs are included in the
initial measurement of all financial assets and liabilities, except for financial assets and liabilities measured at FVPL.

Determination of Fair Value. The fair value for financial instruments traded in active markets at the balance sheet date is based
on their quoted market price or dealer price quotations, without any deduction for transaction costs. When current bid and
asking 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.
65
For all other financial instruments not listed in an active market, the fair value is determined by using appropriate valuation

The Philippine Stock Exchange, Inc.

techniques. Valuation techniques 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 from the fair value based on other observable
current market transactions in the same instrument or based on a valuation technique whose variables include only data from
observable market, the Group recognizes the difference between the transaction price and fair value (a Day 1 difference) in the
statement of comprehensive income unless it qualifies for recognition as some other type of asset. In cases where use is
made of data which is not observable, the difference between the transaction price and model value is recognized in the
statement 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.

Financial Assets and Liabilities at FVPL. Financial assets and liabilities at FVPL include financial assets or liability held for
trading and financial assets and liabilities designated upon initial recognition as at FVPL.

Financial assets or liabilities are classified as held for trading if they are acquired or incurred for the purpose of selling or
repurchasing in the near term.

Financial assets and liabilities are designated at initial recognition as at FVPL if any of the following criteria are met: (a) the
designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets
or liabilities or recognizing gains or losses on them on a different basis; or (b) the assets or liabilities are part of a group of
financial assets or a group of financial liabilities which are managed and their performance evaluated on a fair value basis, in
accordance with a documented risk management strategy; or (c) the financial asset and liability contains an embedded
derivative that would need to be separately recorded.

An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract
with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.
 The Group assesses whether embedded derivatives are required to be separated from the host contracts when the Group first
becomes a party to the contract. Reassessment only occurs if there is a change in the terms of the contract that significantly
modifies the cash flows that would otherwise be required.

An embedded derivative is bifurcated/separated from the host financial or non-financial asset contract and accounted for as a
The Philippine Stock Exchange, Inc.

derivative if all of the following conditions are met:

 The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristic of
the host contract;
 A separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and
 The hybrid or combined instrument is not recognized at FVPL.

Embedded derivatives that are bifurcated from the host contracts are accounted for as financial assets at FVPL. Changes in
fair values are included in the statement of comprehensive income.

As of December 31, 2009 and 2008, the Group has no financial assets and liabilities classified as financial assets and liabilities
at FVPL.
66
HTM Investments. HTM investments are quoted non-derivative financial assets with fixed or determinable payments and fixed
Annual Report 2009

maturities for which the Group’s management has the positive intention and ability to hold to maturity. Where the Group sells
other than an insignificant amount of HTM investments, the entire category would be tainted and reclassified as AFS
investments. After initial measurement, these investments are subsequently measured at amortized cost using the effective
interest rate method, less impairment in value. 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 statement of
comprehensive income when the HTM investments are derecognized and impaired, as well as through the amortization
process.

As of December 31, 2009 and 2008, the Group has no financial assets classified as HTM investments.

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. Such assets are carried at cost or amortized cost
in the balance sheet. Gains and losses are recognized in the statement of comprehensive income when the loans and
receivables are derecognize and impaired, as well as through the amortization process. Amortization is determined using the
effective interest method and is included under interest income in the statement of comprehensive income. Loans and
receivables are classified as current assets if maturity is within 12 months from balance sheet date. Otherwise, these are
classified as noncurrent assets.

Included under this category are the Group’s cash and cash equivalents, receivables, accrued interest receivable, dividends
receivable and other receivables.

AFS Investments. AFS investments are those which are designated as such or do not qualify to be classified or designated as
financial assets at FVPL, HTM investments or loans and receivables. They are purchased and held indefinitely, and may be
sold in response to liquidity requirements or changes in market conditions. AFS investments are classified as current assets if
management intends to sell all these financial assets within 12 months from balance sheet date. Otherwise, these are
classified as noncurrent assets.

After initial measurement, AFS investments are subsequently measured at fair value. Fair value gains and losses are reported
as a separate component in equity until the investment is derecognized or the investment is determined to be impaired at which
time the cumulative gain or loss previously reported in equity is recognized in the statement of comprehensive income. On
derecognition or impairment, the cumulative fair value gains and losses previously reported in equity are transferred to the
statement of comprehensive income.

Included under this category are the Group’s investments in government securities and investment in golf club shares.

Other Financial Liabilities. Issued financial instruments or their components, which are not designated at FVPL are classified
as other financial liabilities, where the substance of the contractual arrangement results in the Group having an obligation either
to deliver cash or another financial asset to the holder, or to 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. After initial measurement, other financial liabilities
are subsequently measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking
into account any related premium, discount and any directly attributable transaction costs.

Included under this category are the Group’s accounts payable (excluding taxes payables), accrued expenses and other
current liabilities.

Impairment of Financial Assets

The Group assesses at each balance sheet 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 individually 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 there is objective evidence that an impairment loss on loans and receivables has been incurred, the amount of

Annual Report 2009

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) discounted at the current market rate of return for a similar financial
asset.

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. Loans and receivables 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. The carrying
67
amount of the asset is reduced through the use of an allowance account. The amount of the loss is charged to the statement
of comprehensive income.

The Philippine Stock Exchange, Inc.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting the
allowance account. The amount of the reversal is recognized in the statement 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
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 year, the amount of the estimated impairment
loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized
impairment loss is increased or reduced by adjusting the Allowance for impairment losses account. If a future write-off is later
recovered, the reversal is recognized in the statement of comprehensive income under Other income account. Any
subsequent reversal of an impairment loss is recognized in the statement of comprehensive income under Provision for
(reversal of) impairment losses account, to the extent that the carrying value of the asset does not exceed its amortized cost at
the reversal date.

AFS Investments. In case of equity investments, this would include a significant or prolonged decline in the fair value of the
investments below its cost. Where there is evidence of impairment, the cumulative loss – measured as the difference between
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in the
statement of comprehensive income – is removed from equity and recognized in the statement of comprehensive income.
Impairment losses on equity investments are not reversed through the statement of comprehensive income. Increases in fair
value after impairment are recognized directly in equity.

In the case of debt instruments, 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 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 in
the statement of comprehensive income. If subsequently, 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 the statement of comprehensive income,
the impairment loss is reversed through the statement of comprehensive income.
 Derecognition of Financial Assets and Liabilities
Financial assets are derecognized when (a) the rights to receive cash flows from the asset have expired; (b) 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; (c) the Group has transferred its rights to receive cash flows from the asset and
either has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
The Philippine Stock Exchange, Inc.

Where the Group has transferred its rights 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. Continuing involvement
that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required to repay.

Financial liabilities are derecognized when the obligations under the liability is discharged, cancelled or expires. Where 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 an 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 statement of
comprehensive income.

68 Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if, and only if, there is a
Annual Report 2009

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 balance sheet.

Investments of CTGF
The CTGF represents contributions of the Exchange and the clearing members as well as interest income earned thereon.
The CTGF is a risk management tool designed to protect the market against the settlement risks of clearing members. The
funds are held in trust by SCCP for the account of the clearing participants. For financial statements presentation, the fund
assets and the corresponding fund liabilities are shown under the assets and liabilities sections, respectively, of the balance
sheet.

The assets of the funds are invested in government securities, which are held for the purpose of investing in liquid funds.
Investments in government securities are recorded and accounted for as AFS investments and are carried at fair value. The
unrealized gains and losses arising from the fair valuation of AFS investments are excluded from reported earnings and
reported as a separate component of accumulated income of due to CTGF. Income and expenses related to the funds are
credited to or charged against the fund balances.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and any impairment in value. The initial cost of
property and equipment comprises of its purchase price and any directly attributable costs of 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. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of property and equipment beyond
its originally assessed standard of performance, the expenditures are capitalized as an additional cost of property and
equipment.

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 statement of comprehensive income in the year the asset is
derecognized.

Depreciation is calculated on the straight-line method over the estimated useful life (EUL) of the depreciable assets. The EUL
of the depreciable assets are as follows:

Buildings 25 years
Building improvements 10 years
 Transportation equipment 5 years
Trading system equipment 3 years
Computer hardware and peripherals 3 to 5 years
Office furniture, fixtures and communication equipment 2 to 5 years
Utilities and others 2 years

The depreciation method and EUL are reviewed periodically to ensure that the method and period of depreciation are
consistent with the expected pattern of economic benefits from items of property and equipment.

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.

Expenditure which enhances or extends the performance of computer software programs beyond their original specifications is
capitalized and added to the original cost of the software. Computer software development costs recognized as assets are
amortized using the straight-line method over their EUL, but not exceeding a period of seven (7) years.

Investment in a Subsidiary
Investment in SCCP in the parent company financial statements is carried at cost, less any impairment in value.

Annual Report 2009

Investment in an Associate
The investment in an associate is accounted for using the equity method of accounting in the consolidated financial statements
and accounted for at cost less any impairment in value in the parent company financial statements. An associate is an entity in
which the Group has significant influence.

Under the equity method, the investment in an associate is carried in the balance sheet at cost plus post acquisition changes in
the Group’s share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the
investment and is not amortized or separately tested for impairment. The statement of comprehensive income reflects the
share of the results of operations of the associate. Where there has been a change recognized directly in the equity of the 69
associate, the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in

The Philippine Stock Exchange, Inc.

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 share of profit (loss) of associates is shown on the face of the statement of comprehensive income. This is the profit (loss)
attributable to equity holders of the associate and therefore is profit (loss) after tax and minority interests in the subsidiaries of
the associates.

The financial statements of the associate are prepared for the same reporting period as the Parent Company. Where
necessary, adjustments are made to bring the accounting policies in line with those of 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
statement of comprehensive income.

Impairment of Nonfinancial Assets

An assessment is made at each balance sheet date as to whether there is any indication of impairment of any property and
equipment, computer software, and investment in subsidiary and associate, or whether there is any indication that an
impairment loss previously recognized for an asset in prior years may no longer exist or may have decreased. If any such
indication exists, the asset’s recoverable amount is estimated. An asset’s recoverable amount is calculated as the higher of the
asset’s value in use or its net selling price.

An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. An impairment loss
is charged against operations in the year in which it arises.
 A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the
recoverable amount of an asset, but not to an amount higher than the carrying amount that would have been determined (net of
any depreciation and amortization) had no impairment loss been recognized for the asset in prior years. Any reversal of an
impairment loss is credited to current operations.
The Philippine Stock Exchange, Inc.

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 assessment of the time value of money and the risks to the asset. For an asset that does not
generate largely independent cash inflows, the recoverable amount is determined for the cash generating units to which the
asset belongs.

Deferred Fees
Deferred fees represent listing fees, listing maintenance fees and data feed fees which are billed and collected but not yet
earned as of balance sheet date. This account is reversed and recognized as revenue when services are rendered.

Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be
reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

70 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 an agreement. The additional listing fees are recognized upon the listing of new
Annual Report 2009

securities issued by an applicant.

Listing Maintenance, Processing, Trading-related and Service Fees. Revenue is recognized when the related services are
rendered.

Interest Income. Interest income is recognized in the statement of comprehensive income as it accrues, taking into account the
effective yield of the asset. Interest income includes the amortization of any discount or premium or other differences between
the initial carrying amount of an interest bearing instrument and its amount at maturity calculated on an effective interest rate
basis.

Dividend Income. Dividend income is recognized when the Group’s or the Parent Company’s right to receive the dividend
payment is established.

Other Revenues. Revenue is recognized when the services are rendered or when penalties or fines are charged. This
account mainly consists of trading and listing related fines and penalties for late payment, late submission of requirements,
noncompliance and nondisclosure of listed companies.

Retirement Cost
The Parent Company has a funded noncontributory defined benefit retirement plan, while SCCP has an unfunded
noncontributory defined benefit retirement plan, administered by trustees, covering their permanent employees. The Group’s
retirement cost is actuarially determined 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 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 statement of
comprehensive income.

Experience adjustments and unrecognized actuarial gains or losses are amortized over the remaining working lives of
employees. Retirement cost includes current service cost, amortization of past-service costs, experience adjustments and
actuarial gains and losses.

Past-service costs are recognized immediately in the statement of comprehensive income, unless the changes to the pension
plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the
past-service costs are amortized on a straight-line basis over the vesting period.

Income Taxes

Current Tax. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially
enacted at the balance sheet date.

Deferred Tax. Deferred tax is provided, using the balance sheet liability method, on all temporary differences at the balance

Annual Report 2009

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, however, is not recognized when it arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting 71
income nor taxable income or loss.

The Philippine Stock Exchange, Inc.

Deferred tax liabilities are not provided on nontaxable temporary differences associated with investment in subsidiary.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset 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 asset 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 substantially enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and deferred taxes related to the same taxable entity and the same taxation authority.

Share-based Payment Transaction

All regular employees in good standing are granted options to purchase shares, subject to restrictions, terms and conditions
provided in the Employee Stock Purchase Plan (ESPP).

The cost of equity-settled transactions is measured by reference to the fair value at the date on which they are granted. The
fair value is determined using a quoted market price at the time of payment.

The cost of equity-settled transactions is recognized with a corresponding increase in the equity, over the period in which the
performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to
the award (vesting date). The cumulative expense recognized for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The amount reflected in the statements of comprehensive income represents the
movement in cumulative expense recognized as of the beginning and end of the period. No expense is recognized for awards
that do not ultimately vest.
 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 statement of comprehensive income on the purchase, sale, issue or
cancellation of the Parent Company’s own equity instruments.

Dividends on Common Shares

The Philippine Stock Exchange, Inc.

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
balance sheet date.

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.

Contingencies
Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of
assets embodying economic benefits is remote. Contingent assets are not recognized in the financial statements but are
disclosed when an inflow of economic benefits is probable.
72
Foreign Currency-Denominated Transactions and Translation
Annual Report 2009

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 assets
and liabilities are credited to or charged against current operations. Monetary assets and liabilities denominated in foreign
currencies are translated using the Philippine Dealing & Exchange Corp. closing rate prevailing at balance sheet date.

Nonmonetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated using
the exchange rate at the date of transaction and non-monetary assets and liabilities that are measured at fair value are
translated using the exchange rate when the fair value was determined.

Events after the Balance Sheet Date

Post-year-end events that provide additional information about the Group’s position at the balance sheet date (adjusting
events) are reflected in the financial statements. Material post-year-end events that are not adjusting events, if any, are
disclosed in the notes to the financial statements.

3. Significant Accounting Judgments and Estimates

The preparation of the financial statements in accordance with PFRS requires the Group to make estimates and assumptions
that affect the reported amounts of assets, liabilities, income and expenses and disclosure of contingent assets and contingent
liabilities. Future events may occur which will cause the assumptions used in arriving at the estimates to change. The effects
of any change in estimates are reflected in the financial statements as they become reasonably determinable.

Judgments and estimates are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be determinable under the circumstances.

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 financial
statements.

Fair Values of Financial Assets and Liabilities. The Group carries certain financial assets at fair value. Fair value
determinations for financial assets and liabilities are based generally on listed or quoted market prices. If prices are not readily
determinable or if liquidating the positions is reasonably expected to affect market prices, fair value is based on management’s
estimate of amounts that could be realized under current market conditions, assuming an orderly liquidation over a reasonable
period of time.
Estimates
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below.

Impairment of AFS Equity Investments. The Group treats AFS equity investments as impaired when there has been a
significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The
determination of what is ‘significant’ or ‘prolonged’ requires judgment. The Group treats ‘significant’ generally as 20% or more
and ‘prolonged’ as greater than the period of six months. In addition, the Group evaluates other factors, including normal
volatility in share price for quoted equities and the future cash flows and the discount factors for unquoted equities.

As of December 31, 2009 and 2008, allowance for impairment losses on AFS equity investments (included under Long-term
AFS investments) amounted to P = 2.9 million and P
= 2.8 million, respectively. AFS equity investments are carried at P
= 0.2 million
and P
= 0.3 million as of December 31, 2009 and 2008, respectively (see Note 7).

Impairment Losses on Receivables. The Group reviews its receivables portfolio to assess impairment annually. In determining
whether an impairment loss should be recorded in the statement of comprehensive income, the Company makes judgment as
to whether there is any observable data indicating that there is a measurable decrease in the estimated future cash flows from
the receivables. This evidence may include observable data indicating that there has been an adverse change in the payment
status of borrowers.

Annual Report 2009

As of December 31, 2009 and 2008, allowance for impairment losses on receivables amounted to P = 6.5 million and P
= 5.6 million,
respectively, for the Group and the Parent Company. As of December 31, 2009 and 2008, receivables are carried at
P
= 58.0 million and P
= 65.1 million, respectively, for the Group and P
= 125.5 million and P
=101.4 million, respectively, for the Parent
Company (see Note 8).

Impairment on Investment in Subsidiary and Associate. The Parent Company assesses impairment on its investments in
subsidiary and associate whenever events or changes in circumstances indicate that the carrying amount of an asset may not
be recoverable. Among others, the factors that the Parent Company considers important which could trigger an impairment 73
review on its investments in subsidiary and associate include the following:

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 Deteriorating or poor financial condition;
 Recurring net losses; and
 Significant changes with an adverse effect on the subsidiary or associate have taken place during the period, or will take
place in the near future, the technological, market, economic, or legal environment in which the subsidiary or associate
operates.

The Parent Company reversed impairment loss on its investment in associate amounting to P = 5.7 million in 2009 and provided
an impairment loss amounting to P = 9.2 million in 2008. The carrying value of the investment in an associate amounted to
P
= 116.1 million and P
= 106.8 million as of December 31, 2009 and 2008, respectively; while the carrying value of the investment
in a subsidiary amounted to P= 69.5 million as of December 31, 2009 and 2008 (see Note 10).

Impairment of Other Nonfinancial Assets. The Group assesses impairment on its other nonfinancial assets (e.g., property and
equipment, computer software) whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Among others, the factors that the Group considers important which could trigger an impairment
review on its nonfinancial assets include the following:

 Significant underperformance relative to expected historical or projected future operating results;

 Significant changes in the manner of use of the acquired assets or the strategy for overall business; and
 Significant negative industry or economic trends.

An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is determined based on the asset’s value in use computation which considers the present value of estimated future
cash flows expected to be generated from the continued use of the asset. The Group is required to make estimates and
assumptions that can materially affect the carrying amount of the asset being assessed.
 As of December 31, 2009 and 2008, the carrying value of property and equipment amounted to P = 509.2 million and
P
= 452.2 million, respectively, for the Group and P
= 507.8 million and P
= 450.6 million, respectively, for the Parent Company (see
Note 9). As of December 31, 2009 and 2008, the carrying value of computer software amounted to P = 10.3 million and
P
= 15.6 million, respectively (see Note 12).
The Philippine Stock Exchange, Inc.

Estimation of Useful Lives of Property and Equipment and Computer Software. The Group estimated the useful lives of its
property and equipment and computer software based on the period over which the assets are expected to be available for
use. The Group reviews annually the estimated useful lives based on factors that include asset utilization, internal technical
evaluation, technological changes, and anticipated use of the assets. A reduction in the estimated useful lives of property and
equipment and computer software would increase the recorded depreciation and amortization expense and decrease the
related assets.

Recognition of Deferred Tax Assets. Deferred tax assets are recognized for all deductible temporary difference to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.
Significant management judgment is required to determine the amount of deferred income tax assets that can be recognized,
based upon the likely timing and level of future taxable profits together with future tax planning strategies.

As of December 31, 2009 and 2008, the Group and the Parent Company recognized net deferred tax asset amounting to
74 P
= 12.9 million and P
= 5.5 million, respectively (see Note 20).
Annual Report 2009

Present Value of Retirement Obligation. The present value of the obligation depends on certain factors that are determined on
an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for retirement
include the expected long-term rate of return on the relevant plan assets and the discount rate. Any changes in these
assumptions will impact the carrying amount of retirement obligations.

The expected rate of return on assets of 6% was based on the market prices prevailing on that date applicable to the period
over which the obligation is to be settled. The assumed discount rates were determined using the market yields on Philippine
government bonds with terms consistent with the expected employee benefit payout as of balance sheet date.

As of December 31, 2009 and 2008, the present value of the defined benefit obligation amounted to P =45.2 million and
P
= 35.6 million, respectively, for the Parent Company and P
= 7.2 million and P
=4.1 million, respectively, for SCCP (see Note 21).

4. Financial Risk Management Objectives and Policies

The Group’s principal financial instruments consist of cash and cash equivalents, AFS investments, receivables and accounts
payable, accrued expenses and other current liabilities (excluding taxes payable). It is the Group’s policy not to engage in the
trading of financial instruments.

The main risks arising from the Group’s financial instruments are liquidity risk, credit risk, interest rate risk and foreign currency
risk. To further strengthen the management of risk, the Group formally created the Internal Audit and Risk Management
positions under the Corporate Governance Office to specifically manage the enterprise-wide risks.

Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with the financial
instruments. Liquidity risk may result from the inability to sell financial assets quickly at their fair values.

The Group seeks to manage its liquidity profile to be able to service its maturing liabilities and to finance capital requirements.
The Group maintains a level of cash and cash equivalents deemed sufficient to finance operations. As part of its liquidity risk
management, the Group regularly evaluates its projected and actual cash flows.

To meet the requirement for liquidity, adequate cash flow is provided for administrative/operating expenditures and capital
expenses based on projected funding requirements. All excess funds are invested in an organized investment mix of short-term
and long-term investments to achieve maximum returns.

The table below summarizes the maturity profile of the Group’s financial assets and financial liabilities as of December 31,
2009 and 2008 based on remaining contractual undiscounted payments.
 As of December 31, 2009
More Than No Maturity
Within a Year 1-2 Years Two Years Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P
= 393,730,584 P
=– P
=– P
=– P
= 393,730,584
Receivables 57,950,759 – – – 57,950,759
Other assets - deposits in bank – – 15,098,865 – 15,098,865
AFS investments:
Government debt securities 315,940,151 480,261,413 129,968,940 – 926,170,504
Other assets - other investments – – – 10,480,181 10,480,181
Equity securities – – – 200,000 200,000
P
= 767,621,494 P
= 480,261,413 P
= 145,067,805 P
= 10,680,181 P
= 1,403,630,893

Financial Liabilities
Other financial liabilities:
Due to SEC P
= 60,354,190 P
=– P
=– P
=– P
= 60,354,190
Accrued expenses 20,229,274 – – – 20,229,274
Accounts payable 14,409,471 – – – 14,409,471
Others 2,647,906 – – – 2,647,906
P
= 97,640,841 P
=– P
=– P
=– P
= 97,640,841

Annual Report 2009

As of December 31, 2008
More Than No Maturity
Within a Year 1-2 Years Two Years Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P
= 132,488,824 P
=– P
=– P
=– P
= 132,488,824
Receivables 65,077,459 – – – 65,077,459
Other assets - deposits in bank – – 14,687,141 – 14,687,141
AFS investments: 75
Government debt securities 367,632,653 841,101,285 – – 1,208,733,938

The Philippine Stock Exchange, Inc.

Other assets - other investments – – – 10,480,181 10,480,181
Equity securities – – – 300,000 300,000
P
= 565,198,936 P
= 841,101,285 P
= 14,687,141 P
= 10,780,181 P
= 1,431,767,543

Financial Liabilities
Other financial liabilities:
Due to SEC P
= 37,967,320 P
=– P
=– P
=– P
= 37,967,320
Accrued expenses 21,930,282 – – – 21,930,282
Accounts payable 33,321,929 – – – 33,321,929
Others 3,038,411 – – – 3,038,411
P
= 96,257,942 P
=– P
=– P
=– P
= 96,257,942

The table below summarizes the maturity profile of the Parent Company’s financial assets and financial liabilities as of
December 31, 2009 and 2008 based on remaining contractual undiscounted payments.

As of December 31, 2009

More Than No Maturity
Within a Year 1-2 Years Two Years Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P
= 325,470,441 P
=– P
=– P
=– P
= 325,470,441
Receivables 125,525,969 – – – 125,525,969
Other assets - deposits in bank – – 15,098,865 – 15,098,865
AFS investments:
Government debt securities 200,111,265 455,730,782 129,968,940 – 785,810,987
Other assets - other investments – – – 10,480,181 10,480,181
Equity securities – – – 200,000 200,000
P
= 651,107,675 P
= 455,730,782 P
= 145,067,805 P
= 10,680,181 P
= 1,262,586,443
 As of December 31, 2009
More Than No Maturity
Within a Year 1-2 Years Two Years Date Total

Financial Liabilities
The Philippine Stock Exchange, Inc.

Other financial liabilities:

Due to SEC P
= 60,354,190 P
=– P
=– P
=– P
= 60,354,190
Accrued expenses 18,131,792 – – – 18,131,792
Accounts payable 10,453,471 – – – 10,453,471
Others 2,647,906 – – – 2,647,906
P
= 91,587,359 P
=– P
=– P
=– P
= 91,587,359

As of December 31, 2008

More Than No Maturity
Within a Year 1-2 Years Two Years Date Total
Financial Assets
Loans and receivables:
Cash and cash equivalents P
= 60,132,769 P
=– P
=– P
=– P
= 60,132,769
Receivables 101,413,271 – – – 101,413,271
Other assets - deposits in bank – – 14,687,141 – 14,687,141
76 AFS investments:
Government debt securities 313,479,536 801,254,240 – – 1,114,733,776
Annual Report 2009

Other assets - other investments – – – 10,480,181 10,480,181

Equity securities – – – 300,000 300,000
P
= 475,025,576 P
= 801,254,240 P
= 14,687,141 P
= 10,780,181 P
= 1,301,747,138

Financial Liabilities
Other financial liabilities:
Due to SEC P
= 37,967,320 P
=– P
=– P
=– P
= 37,967,320
Accrued expenses 17,592,495 – – – 17,592,495
Accounts payable 32,462,639 – – – 32,462,639
Others 3,029,410 – – – 3,029,410
P
= 91,051,864 P
=– P
=– P
=– P
= 91,051,864

Credit Risk
Credit risk refers to the potential loss arising from any failure by counterparties to fulfill their obligations, as and when they fall
due. The Group’s credit exposure arises mainly from receivables from brokers 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 investments, arises from
default of the counterparty.

The table below shows the maximum exposure to credit risk before considering collateral and other credit enhancements.

Consolidated Parent Company

2009 2008 2009 2008
Loans and Receivables
Cash and cash equivalents (excluding
cash on hand) P
= 393,616,042 P
= 132,358,508 P
= 325,365,941 P
= 60,028,269
Receivables from
Brokers 26,240,105 28,390,330 13,033,322 14,557,437
Listed companies 4,144,741 3,046,213 4,144,741 3,046,213
Data vendors 2,857,744 2,361,482 2,857,744 2,361,482
Dividend receivable – – 80,000,000 50,000,000
Accrued interest receivable 19,132,839 28,310,043 17,526,565 26,179,248
Other receivables 5,575,330 2,969,391 7,961,597 5,268,891
Other assets - deposits in bank 15,098,865 14,687,141 15,098,865 14,687,141

(Forward)
 Consolidated Parent Company
2009 2008 2009 2008
AFS Investments
Government debt securities
Short-term P
= 315,897,605 P
= 367,632,653 P
= 200,111,264 P
= 313,479,536
Long-term 610,272,899 841,101,285 585,699,723 801,254,240
Equity securities 200,000 300,000 200,000 300,000
Other assets - other investments 10,480,181 10,480,181 10,480,181 10,480,181
P
= 1,403,516,351 P
= 1,431,637,227 P
= 1,262,479,943 P
= 1,301,642,638

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

2009
Neither Past Due nor Impaired Past Due
Medium but not
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
Cash and cash equivalents
(excluding cash on hand) P
= 393,616,042 P
=– P
=– = 393,616,042
P P
=– P
= 393,616,042

Annual Report 2009

Receivables from
Brokers 26,234,105 – – 26,234,105 6,000 26,240,105
Listed companies 730,540 – – 730,540 3,414,201 4,144,741
Data vendors 2,818,786 – – 2,818,786 40,958 2,859,744
Accrued interest receivable 19,132,839 – – 19,132,839 – 19,132,839
Other receivables 5,575,330 – – 5,575,330 – 5,575,330
Other assets - deposits in
bank 15,098,865 – – 15,098,865 – 15,098,865
AFS Investments 77
Government debt securities

The Philippine Stock Exchange, Inc.

Short-term 315,897,605 – – 315,897,605 – 315,897,605
Long-term 478,381,431 131,891,467 – 610,272,898 – 610,272,898
Other assets - other
investments 10,480,181 – – 10,480,181 – 10,480,181
Total Financial Assets P
= 1,267,965,724 P
= 131,891,467 P
=– P
= 1,399,857,191 P
= 3,461,159 P
= 1,403,318,350

2008
Neither Past Due nor Impaired Past Due
Medium but not
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
Cash and cash equivalents
(excluding cash on hand) P
= 132,358,508 P
=– P
=– P
= 132,358,508 P
=– P
= 132,358,508
Receivables from
Brokers 28,390,330 – – 28,390,330 – 28,390,330
Listed companies 1,204,463 – – 1,204,463 1,841,750 3,046,213
Data vendors 2,361,482 – – 2,361,482 – 2,361,482
Accrued interest receivable 28,310,043 – – 28,310,043 – 28,310,043
Other receivables 2,942,391 27,000 – 2,969,391 – 2,969,391
Other assets - deposits in bank 14,687,141 – – 14,687,141 – 14,687,141
AFS Investments
Government debt securities
Short-term 367,632,653 – – 367,632,653 – 367,632,653
Long-term 726,850,452 114,250,833 – 841,101,285 – 841,101,285
Other assets - other
investments 10,480,181 – – 10,480,181 – 10,480,181
Total Financial Assets P
= 1,315,217,644 P
= 114,277,833 P
=– P
= 1,429,495,477 P
= 1,841,750 P
= 1,431,337,227
 The following table provides information regarding the credit risk exposure of the Parent Company by classifying financial
assets according to credit ratings of the counterparties:

2009
Neither Past Due nor Impaired Past Due
The Philippine Stock Exchange, Inc.

Medium but not

High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
Cash and cash equivalents
(excluding cash on hand) P
= 325,365,941 P
=– P
=– P
= 325,365,941 P
=– P
= 325,365,941
Receivables from
Brokers 13,027,322 – – 13,027,322 6,000 13,033,322
Listed companies 730,540 – – 730,540 3,414,201 4,144,741
Data vendors 2,816,786 – – 2,816,786 40,958 2,857,744
Dividend receivable 80,000,000 – – 80,000,000 – 80,000,000
Accrued interest receivable 17,526,565 – – 17,526,565 – 17,526,565
Other receivables 7,961,597 – – 7,961,597 – 7,961,597
Other assets - deposits in bank 15,098,865 – – 15,098,865 – 15,098,865
AFS Investments
78 Government debt securities
Short-term 200,111,264 – – 200,111,264 – 200,111,264
Long-term 453,808,256 131,891,467 – 585,699,723 – 585,699,723
Annual Report 2009

Other assets - other

investments 10,480,181 – – 10,480,181 – 10,480,181
Total Financial Assets P
= 1,126,927,317 P
= 131,891,467 P
=– P
= 1,258,818,784 P
= 3,461,159 P
= 1,262,279,943

2008
Neither Past Due nor Impaired Past Due
Medium but not
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
Cash and cash equivalents
(excluding cash on hand) P
= 60,028,269 P
=– P
=– P
= 60,028,269 P
=– P
= 60,028,269
Receivables from
Brokers 14,557,437 – – 14,557,437 – 14,557,437
Listed companies 1,204,463 – – 1,204,463 1,841,750 3,046,213
Data vendors 2,361,482 – – 2,361,482 – 2,361,482
Dividend receivable 50,000,000 – – 50,000,000 – 50,000,000
Accrued interest receivable 26,179,248 – – 26,179,248 – 26,179,248
Other receivables 5,241,891 27,000 – 5,268,891 – 5,268,891
Other assets - deposits in bank 14,687,141 – – 14,687,141 – 14,687,141
AFS Investments
Government debt securities
Short-term 313,479,536 – – 313,479,536 – 313,479,536
Long-term 687,030,407 114,223,833 – 801,254,240 – 801,254,240
Other assets - other
investments 10,480,181 – – 10,480,181 – 10,480,181
Total Financial Assets P
= 1,185,250,055 P
= 114,250,833 P
=– P
= 1,299,500,888 P
= 1,841,750 P
= 1,301,342,638

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.

AFS investments - the 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; medium grade pertains to receivables with up to 3
defaults in payment; low grade pertains to receivables with more than 3 defaults in payment; and past due but not impaired
pertains to receivables where payments are past due but the Group believes that impairment is not appropriate on the basis of
status of collection of amounts owed to the Group.
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 instruments, 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
the price of a financial instrument) 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.

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

Annual Report 2009

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 and the Parent Company’s equity (through the impact on unrealized gain/loss on AFS fixed rate debt securities).
The impact on the Group’s and the Parent Company’s equity already excludes the impact on transactions affecting the
statement of comprehensive income.

Consolidated Parent Company

Changes in interest rates Effect on equity 79
2009 2008 2009 2008

The Philippine Stock Exchange, Inc.

+70 basis points (P
= 7,782,258) (P
= 12,293,796) (P
= 8,573,945) (P
= 11,954,139)
-70 basis points 7,569,544 12,227,047 8,373,115 11,887,390

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 Group and Parent Company’s exposure to foreign currency exchange risk as of
December 31, 2009 and 2008:

2009 2008
In USD In PhP In USD In PhP
Financial assets:
Cash and cash equivalents $297,668 P
= 13,663,797 $273,783 P
= 13,010,147
Long-term AFS investments 2,385,804 110,224,147 2,393,899 113,758,083
Accounts receivable 72,127 3,602,196 35,934 1,764,522
$2,755,599 P
= 127,490,140 $2,703,616 P
= 128,532,752
 The table below indicates the effect of increase or decrease in US dollar exchange rate on income before income tax to which
the Parent Company 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.
The Philippine Stock Exchange, Inc.

2009 2008
USD Effect on USD Effect on
Strengthens/ Income Strengthens/ Income
Weakens Before Tax Weakens Before Tax
+5% P
= 6,374,507 +5% P
= 6,423,792
–5% (6,374,507) –5% (6,423,792)

The sensitivity of the statement of comprehensive income is the effect of reasonably possible change in spot rates which
comes from the revaluation of foreign currency-denominated assets to Philippine peso.

There is no other impact on the equity other than those already affecting the statement of comprehensive income.

80
5. Fair Value Measurement and Fair Value Hierarchy
Annual Report 2009

The table below presents a comparison of the carrying amounts and estimated fair values of the Group’s financial instruments:

Carrying Value Fair Value

2009 2008 2009 2008
Financial Assets
Loans and receivables:
Cash and cash equivalents P
= 393,730,584 P
= 132,488,824 P
= 393,730,584 P
= 132,488,824
Receivables from:
Brokers 26,240,105 28,390,330 26,240,105 28,390,330
Listed companies 4,144,741 3,046,213 4,144,741 3,046,213
Data vendors 2,857,744 2,361,482 2,857,744 2,361,482
Accrued interest receivable 19,132,839 28,310,043 19,132,839 28,310,043
Other receivables 5,602,330 2,969,391 5,602,330 2,969,391
Other assets - deposits in bank 15,098,865 14,687,141 15,098,865 14,687,141
AFS investments:
Government debt securities
Short-term 315,897,605 367,632,653 315,897,605 367,632,653
Long-term 610,272,899 841,101,285 610,272,899 841,101,285
Other assets - other investments 10,480,181 10,480,181 10,480,181 10,480,181
Equity securities 200,000 300,000 200,000 300,000
P
= 1,403,657,893 P
= 1,431,767,543 P
= 1,403,657,893 P
= 1,431,767,543

Financial Liabilities
Other financial liabilities:
Due to SEC P
= 60,354,190 P
= 37,967,320 P
= 60,354,190 P
= 37,967,320
Accrued expenses 20,229,274 21,930,282 20,229,274 21,930,282
Accounts payable 14,409,470 32,277,313 14,409,470 32,277,313
Others 2,647,906 5,480,035 2,647,906 5,480,035
P
= 97,640,840 P
= 97,654,950 P
= 97,640,840 P
= 97,654,950
The table below presents a comparison of the carrying amounts and estimated fair values of the Parent Company’s financial
instruments:

Carrying Value Fair Value

2009 2008 2009 2008
Financial Assets
Loans and receivable:
Cash and cash equivalents P
= 325,470,441 P
= 60,132,769 P
= 325,470,441 P
= 60,132,769
Receivables from:
Brokers 13,033,322 45,922,168 13,033,322 45,922,168
Listed companies 4,144,741 3,046,213 4,144,741 3,046,213
Data vendors 2,857,744 2,361,482 2,857,744 2,361,482
Accrued interest receivable 17,526,565 26,179,248 17,526,565 26,179,248
Dividends receivable 80,000,000 50,000,000 80,000,000 50,000,000
Other receivables 7,990,597 5,233,752 7,990,597 5,268,891
Other assets - deposits in bank 15,098,865 14,687,141 15,098,865 14,687,141
AFS investments:
Government debt securities
Short-term 200,111,264 313,479,536 200,111,264 313,479,536
Long-term 585,699,723 801,254,240 585,699,723 801,254,240

Annual Report 2009

Other assets - other investments 10,480,181 10,480,181 10,480,181 10,480,181
Equity securities 200,000 300,000 200,000 300,000
P
= 1,262,613,443 P
= 1,333,076,730 P
= 1,262,613,443 P
= 1,333,111,869

Financial Liabilities
Other financial liabilities:
Due to SEC P
= 60,354,190 P
= 37,967,320 P
= 60,354,190 P
= 37,967,320
Accrued expenses 18,131,792 17,592,495 18,131,792 17,592,495 81
Accounts payable 10,453,471 31,418,016 10,453,471 31,418,016

The Philippine Stock Exchange, Inc.

Others 2,647,906 1,900,707 2,647,906 1,900,707
P
= 91,587,359 P
= 88,878,538 P
= 91,587,359 P
= 88,878,538

The methods and assumptions used by the Group in estimating the fair value of the financial instruments are:

Cash and Cash Equivalents. The fair value approximates the carrying amounts due to its short-term nature.

Receivables. Due to short-term nature of the transactions, the carrying amounts approximate fair values.

AFS Investments. Fair values are based on quoted market prices.

Accounts Payable, Accrued Expenses and Other Current Liabilities. Due to short-term nature of the transactions, the carrying
amounts approximate fair values.

Fair Value Hierarchy

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

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

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

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

As of December 31, 2009 and 2008, the Group’s AFS investments, which are measured at fair value, are categorized under
Level 1 of the fair value hierarchy.
 6. Cash and Cash Equivalents

This account consists of:

Consolidated Parent Company

The Philippine Stock Exchange, Inc.

2009 2008 2009 2008

Cash on hand and in banks P
= 77,330,584 P
= 69,488,824 P
= 64,070,441 P= 47,132,769
Cash equivalents 316,400,000 63,000,000 261,400,000 13,000,000
P
= 393,730,584 P
= 132,488,824 P
= 325,470,441 P= 60,132,769

Cash equivalents represent time deposits with original maturity of three months or less from dates of placement and earn
interest rates ranging from 4.06% to 4.25% in 2009, from 5.62% to 6.63% in 2008 and from 4.50% to 6.25% in 2007.

7. AFS Investments

This account consists of:

82 Consolidated Parent Company

2009 2008 2009 2008
Annual Report 2009

Short-term government debt

securities P
= 315,897,605 P
= 367,632,653 P
= 200,111,264 P
= 313,479,536
Long-term:
Government debt securities
Peso 478,381,431 726,877,452 453,808,255 687,030,407
US dollar 131,891,468 114,223,833 131,891,468 114,223,833
610,272,899 841,101,285 585,699,723 801,254,240
Equity securities 3,078,000 3,078,000 3,078,000 3,078,000
Less allowance for impairment
losses 2,878,000 2,778,000 2,878,000 2,778,000
200,000 300,000 200,000 300,000
610,472,899 841,401,285 585,899,723 801,554,240
P
= 926,370,504 P
= 1,209,033,938 P
= 786,010,987 P
= 1,115,033,776

The short-term government debt securities earn annual interest rates ranging from 4.25% to 11.20% in 2009, from 5.64% to
6.53% in 2008 and from 5.20% to 11.88% in 2007.

Peso-denominated long-term government debt securities earn annual interest rates ranging from 4.25% to 11.20% in 2009,
from 5.50% to 12.00% in 2008 and from 8.38% to 11.88% in 2007 while US dollar-denominated debt securities earn annual
interest rates ranging from 6.34% to 9.20% in 2009, 8.25% to 9.88% in 2008 and 8.00% to 9.88% in 2007.

As of December 31, 2009 and 2008, movements of net unrealized gain on AFS investments are as follow:

Consolidated Parent Company

2009 2008 2009 2008
Balance at beginning of year P
= 16,434,488 P
= 57,606,180 P
= 15,915,890 P= 57,858,928
Net unrealized gains (loss) on
AFS investments for the year 25,251,916 (41,171,692) 25,887,644 (41,943,038)
Realized gain transferred to
statement of comprehensive
income 49,487 – 17,611 –
Net gain (loss) on AFS investments 25,301,403 (41,171,692) 25,905,255 (41,943,038)
Balance at end of year P
= 41,735,891 P
= 16,434,488 P
= 41,821,145 P
= 15,915,890
 The maturity profile of the investment in debt securities follows:

Consolidated Parent Company

2009 2008 2009 2008
Within one year P
= 315,940,151 P
= 367,632,653 P
= 200,111,265 P
= 313,479,536
1- 2 years 480,261,413 841,101,285 455,730,782 801,254,240
More than two years 129,968,940 – 129,968,940 –
P
= 926,170,504 P
= 1,208,733,938 P
= 785,810,987 P
= 1,114,733,776

Changes in the allowance for impairment losses follow:

2009 2008
Balance at beginning of year P
= 2,778,000 P
= 23,856,651
Provision for impairment loss 100,000 –
Reclassification to investment in an associate (Note 10) – (21,078,651)
Balance at end of year P
= 2,878,000 P
= 2,778,000

In 2008, the Parent Company infused additional investment in PDS Holdings resulting to an increase in ownership to 20.98%
which led to the assumption of significant influence on this investment (see Note 10).

Annual Report 2009

The rollforward analysis of the Group’s and the Parent Company’s AFS investments follow:

Consolidated Parent Company

2009 2008 2009 2008
Balance at beginning of year P
= 1,209,033,938 P
= 1,214,536,059 P
= 1,115,033,776 P
= 1,019,309,326
Maturities (493,261,808) (542,350,696) (439,706,289) (347,292,234)
Acquisitions 185,396,971 659,642,273 84,878,245 566,581,728
Provision for impairment loss (100,000) – (100,000) – 83
Net change in fair value 25,301,403 (41,171,692) 25,905,255 (41,943,038)

The Philippine Stock Exchange, Inc.

Transferred to investment in an
associate (Note 10) – (81,622,006) – (81,622,006)
P
= 926,370,504 P
= 1,209,033,938 P
= 786,010,987 P
= 1,115,033,776

8. Receivables

This account consists of:

Consolidated Parent Company

2009 2008 2009 2008
Receivables from:
Brokers (Note 23) P
= 27,101,763 P
= 30,042,988 P
= 13,894,980 P
= 16,210,095
Listed companies 9,786,859 6,997,691 9,786,859 6,997,691
Data vendors 2,857,744 2,361,482 2,857,744 2,361,482
Dividend receivable – – 80,000,000 50,000,000
Accrued interest receivable 19,132,839 28,310,043 17,526,565 26,179,248
Other receivables 5,602,330 2,969,391 7,990,597 5,268,891
Total 64,481,535 70,681,595 132,056,745 107,017,407
Less allowance for impairment
losses 6,530,776 5,604,136 6,530,776 5,604,136
P
= 57,950,759 P
= 65,077,459 P
= 125,525,969 P
= 101,413,271

Under Article II, Section 7 of Rules Governing Trading Rights and Trading Participants, all trading rights held by broker
members are pledged at its full value to secure the payment of the trading participants (brokers) debts due to the Parent
Company and other brokers of the Parent Company arising out of or in connection with the present or future brokers’ contracts.
Based on the latest transaction in 2009 and 2008, the transacted price of a trading right amounted to P = 10.2 million and
P
= 12.8 million, respectively.
 The receivables generally have terms of 30 days, except for the receivables from data vendors which are normally collected
within 45 days.

As of December 31, 2009 and 2008, receivables from brokers and listed companies with total carrying value of P = 6.5 million and
P
= 5.6 million, respectively, which were specifically identified to be impaired, were fully provided with allowance.
The Philippine Stock Exchange, Inc.

The aging analysis of receivables that are past due but not impaired follows:

Consolidated

2009
Past Due but not Impaired
Over
Neither Past 180 Days but
Due nor 60 to 120 120 to 180 Less than
Impaired 30 to 60 Days Days Days 360 Days Total
Receivables from:
Brokers P
= 26,234,105 P
=– P
=– P
=– P
= 6,000 P
= 26,240,105
Listed companies 730,540 – – – 3,414,201 4,144,741
84 Data vendors 2,816,786 – – – 40,958 2,857,744
Accrued interest receivable 19,132,839 – – – – 19,132,839
Annual Report 2009

Other receivables 5,575,330 – – – – 5,575,330

P
= 54,489,600 P
=– P
=– P
=– P
= 3,461,159 P
= 57,950,759

2008
Past Due but not Impaired
Over
Neither Past 180 Days but
Due nor 60 to 120 120 to Less than
Impaired 30 to 60 Days Days 180 Days 360 Days Total
Receivables from:
Brokers P
= 28,390,330 P
=– P
=– P
=– P
=– P
= 28,390,330
Listed companies 1,204,463 – – – 1,841,750 3,046,213
Data vendors 2,361,482 – – – – 2,361,482
Accrued interest receivable 28,310,043 – – – – 28,310,043
Other receivables 2,969,391 – – – – 2,969,391
P
= 63,235,709 P
=– P
=– P
=– P
= 1,841,750 P
= 65,077,459

Parent Company

2009
Past Due but not Impaired
Over
Neither Past 180 Days but
Due nor 60 to 120 120 to Less than
Impaired 30 to 60 Days Days 180 Days 360 Days Total
Receivables from:
Brokers P
= 13,027,322 P
=– P
=– P
=– P
= 6,000 P
= 13,033,322
Listed companies 730,540 – – – 3,414,201 4,144,741
Data vendors 2,816,786 – – – 40,958 2,857,744
Accrued interest receivable 17,526,565 – – – – 17,526,565
Dividends receivable 80,000,000 – – – – 80,000,000
Other receivables 7,963,597 – – – – 7,963,597
P
= 122,064,810 P
=– P
=– P
=– P
= 3,461,159 P
= 125,525,969
 2008
Past Due but not Impaired
Over
Neither Past 180 Days but
Due nor 60 to 120 120 to Less than
Impaired 30 to 60 Days Days 180 Days 360 Days Total
Receivables from:
Brokers P
= 14,557,437 P
=– P
=– P
=– P
=– P
= 14,557,437
Listed companies 1,204,463 – – – 1,841,750 3,046,213
Data vendors 2,361,482 – – – – 2,361,482
Accrued interest receivable 26,179,248 – – – – 26,179,248
Dividends receivable 50,000,000 – – – – 50,000,000
Other receivables 5,268,891 – – – – 5,268,891
P
= 99,571,521 P
=– P
= P
=– P
= 1,841,750 P
= 101,413,271

Changes in the allowance for impairment losses follow:

2009
Listed
Brokers Companies Total
Balance at beginning of year P
= 1,652,658 P
= 3,951,478 P
= 5,604,136

Annual Report 2009

Provision for impairment loss 9,000 1,717,640 1,726,640
Recoveries (800,000) – (800,000)
Balance at end of year P
= 861,658 P
= 5,669,118 P
= 6,530,776

2008
Listed
Brokers Companies Total
Balance at beginning of year P
= 4,429,158 P
= 4,368,478 P
= 8,797,636 85
Provision for impairment loss – 1,076,000 1,076,000

The Philippine Stock Exchange, Inc.

Recoveries (2,776,500) (1,493,000) (4,269,500)
Balance at end of year P
= 1,652,658 P
= 3,951,478 P
= 5,604,136

9. Property and Equipment

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

Consolidated
December 31, 2009
Office
Furniture, Donated
Trading Computer Fixtures and Shares in a
System Building Hardware and Communication Transportation Utilities and Condominium
Buildings Equipment Improvements Peripherals Equipment Equipment Others Corporation Total
Cost
At beginning of year P
= 224,895,034 P
= 303,597,916 P
= 123,712,167 P= 149,276,602 P
= 70,195,915 P= 16,756,399 P= 2,515,717 P= 155,690,154 P
= 1,046,639,904
Additions – 72,936,118 3,467,207 14,390,869 799,933 1,708,279 30,358 – 93,332,764
Disposals – – – – (1,327,886) (2,500,488) (91,072) – (3,919,446)
At end of year 224,895,034 376,534,034 127,179,374 163,667,471 69,667,962 15,964,190 2,455,003 155,690,154 1,136,053,222
Accumulated
depreciation
At beginning of year 125,990,053 169,795,705 118,795,594 118,988,986 54,976,891 4,464,938 1,441,381 – 594,453,548
Depreciation 8,995,801 4,766,538 1,145,923 13,266,652 2,807,257 2,949,486 79,914 – 34,011,571
Disposals – – – – (6,079) (1,581,018) (8,681) – (1,595,778)
At end of year 134,985,854 174,562,243 119,941,517 132,255,638 57,778,069 5,833,406 1,512,614 – 626,869,341
Net book value P
= 89,909,180 P
= 201,971,791 P
= 7,237,857 P= 31,411,833 P
= 11,889,893 P= 10,130,784 P
= 942,389 P= 155,690,154 P
= 509,183,881
 December 31, 2008
Office
Furniture, Donated
Trading Computer Fixtures and Shares in a
System Building Hardware and Communication Transportation Utilities and Condominium
Buildings Equipment Improvements Peripherals Equipment Equipment Others Corporation Total
Cost
At beginning of year P
= 224,895,034 P
= 182,862,915 P
= 120,417,033 P= 132,448,727 P
= 57,679,968 P= 13,386,251 P= 1,900,027 P
= 155,690,154 P
= 889,280,109
The Philippine Stock Exchange, Inc.

Additions – 120,735,001 3,295,134 23,451,316 12,859,967 10,415,645 615,690 – 171,372,753

Disposals – – – (6,623,441) (344,020) (7,045,497) – – (14,012,958)
At end of year 224,895,034 303,597,916 123,712,167 149,276,602 70,195,915 16,756,399 2,515,717 155,690,154 1,046,639,904
Accumulated
depreciation
At beginning of year 116,994,252 164,787,338 117,893,772 115,063,599 53,712,312 5,655,654 1,361,895 – 575,468,822
Depreciation 8,995,801 5,008,367 901,822 10,548,828 1,608,599 2,106,600 79,486 – 29,249,503
Disposals – – – (6,623,441) (344,020) (3,297,316) – – (10,264,777)
At end of year 125,990,053 169,795,705 118,795,594 118,988,986 54,976,891 4,464,938 1,441,381 – 594,453,548
Net book value P
= 98,904,981 P
= 133,802,211 P
= 4,916,573 P= 30,287,616 P
= 15,219,024 P= 12,291,461 P= 1,074,336 P
= 155,690,154 P
= 452,186,356

Parent Company

December 31, 2009

Office
86 Furniture, Donated
Computer Fixtures and Shares in a
Trading System Building Hardware and Communication Transportation Utilities and Condominium
Annual Report 2009

Buildings Equipment Improvements Peripherals Equipment Equipment Others Corporation Total

Cost
At beginning of year P
= 224,895,034 P
= 303,597,916 P
= 120,049,727 P= 138,086,270 P
= 69,331,090 P = 15,684,970 P = 2,515,717 P = 155,690,154 P
= 1,029,850,878
Additions – 72,936,118 3,467,208 14,066,498 642,790 1,708,279 30,388 – 92,851,251
Disposals – – – – (1,327,886) (2,500,488) (91,072) – (3,919,446)
At end of year 224,895,034 376,534,034 123,516,935 152,152,768 68,645,994 14,892,761 2,455,003 155,690,154 1,118,782,683
Accumulated
depreciation
At beginning of year 125,990,053 169,795,705 115,133,167 108,295,904 54,219,739 4,393,507 1,441,381 – 579,269,456
Depreciation 8,995,801 4,766,538 1,145,923 12,866,980 2,754,202 2,735,200 79,914 – 33,344,558
Disposals – – – – (6,079) (1,581,018) (8,681) – (1,595,778)
At end of year 134,985,854 174,562,243 116,279,090 121,162,884 56,967,862 5,547,689 1,512,614 – 611,018,236
Net book value P
= 89,909,180 P
= 201,971,791 P
= 7,237,845 P= 30,989,884 P
= 11,678,132 P
= 9,345,072 P
= 942,389 P= 155,690,154 = 507,764,447
P

December 31, 2008

Office
Furniture, Donated
Computer Fixtures and Shares in a
Trading System Building Hardware and Communication Transportation Utilities and Condominium
Buildings Equipment Improvements Peripherals Equipment Equipment Others Corporation Total
Cost
At beginning of year P
= 224,895,034 P
= 182,862,915 P
= 116,754,593 P= 121,462,056 P
= 56,887,616 P= 12,704,433 P= 1,900,027 P
= 155,690,154 P
= 873,156,828
Additions – 120,735,001 3,295,134 23,247,655 12,787,494 9,344,216 615,690 – 170,025,190
Disposals – – – (6,623,441) (344,020) (6,363,679) – (13,331,140)
At end of year 224,895,034 303,597,916 120,049,727 138,086,270 69,331,090 15,684,970 2,515,717 155,690,154 1,029,850,878
Accumulated
depreciation
At beginning of year 116,994,252 164,787,338 114,231,345 104,884,808 52,984,905 5,326,108 1,361,895 – 560,570,651
Depreciation 8,995,801 5,008,367 901,822 10,034,537 1,578,854 1,932,897 79,486 – 28,531,764
Disposals – – – (6,623,441) (344,020) (2,865,498) – – (9,832,959)
At end of year 125,990,053 169,795,705 115,133,167 108,295,904 54,219,739 4,393,507 1,441,381 – 579,269,456
Net book value P
= 98,904,981 P
= 133,802,211 P
= 4,916,560 P= 29,790,366 P
= 15,111,351 P= 11,291,463 P = 1,074,336 P
= 155,690,154 P
= 450,581,422

Buildings 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.

Trading system equipment represents software and hardware costs. Software costs can no longer be separately classified as
this is an integral part of the related hardware.
10. Investment in an Associate and a Subsidiary
This account consists of:
Consolidated Parent Company
2009 2008 2009 2008
Acquisition Cost
Wholly owned subsidiary
SCCP P
=– P
=– P
= 69,545,393 P
= 69,545,393
Associate
PDS Holdings 137,050,657 137,050,657 137,050,657 137,050,657
137,050,657 137,050,657 206,596,050 206,596,050
Impairment Losses
Balance at beginning of year (26,217,321) (21,078,651) (30,232,010) (21,078,651)
Reversal of (provision for)
impairment loss 5,727,903 (5,138,670) 5,727,903 (9,153,359)
Balance at end of year (20,489,418) (26,217,321) (24,504,107) (30,232,010)
Accumulated Income (Loss) of
Investee
Balance at beginning of year (4,014,689) – – –

Annual Report 2009

Share in net income (loss) of investee 3,553,274 (4,014,689) – –
Balance at end of year (461,415) (4,014,689) – –
P
= 116,099,824 P
= 106,818,647 P
= 182,091,943 P
= 176,364,040

On November 12, 2007 and April 8, 2008, the Parent Company infused additional capital into PDS Holdings amounting to
P
= 35.65 million and P
= 34.35 million, respectively, equivalent to a total of 700,000 shares. The additional investments resulted to
a 20.98% ownership in the said company. The carrying value of the investments was reclassified from AFS investments to
Investment in an associate account.
87
Financial information of PDS Holdings is as follows (amounts in millions):

The Philippine Stock Exchange, Inc.

2009
(Unaudited) 2008
Total assets P
= 625.8 P
= 612.8
Total liabilities 72.3 76.4
Revenue 368.4 308.4
Net income (loss) 17.0 (5.5)

11. Investments of Clearing and Trade Guaranty Fund

This account consists of:
2009 2008
Principal contributions from:
Brokers
Balance at beginning of year P
= 168,097,684 P
= 141,959,675
Contributions 35,793,750 26,138,009
Balance at end of year 203,891,434 168,097,684
The Exchange 80,000,000 80,000,000
283,891,434 248,097,684
Accumulated income:
Balance at beginning of year 155,600,443 138,702,518
Interest income - net of management fee of
P
= 454,997 in 2009 and P
= 404,102 in 2008 16,723,504 16,897,925
Balance at end of year 172,323,947 155,600,443
Net unrealized losses on AFS investments (819,567) (1,409,520)
171,504,380 154,190,923
P
= 455,395,814 P
= 402,288,607
 The CTGF is a risk management tool designed to protect the market against the settlement risks of clearing members. Each
active clearing member’s monthly contribution is equivalent to 1/500 of 1% of the members’ trade value, net of block sales and
cross transactions of the same flag.

On 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 BOD approved the full refund of contributions to the CTGF upon cessation
The Philippine Stock Exchange, Inc.

of business of the clearing member and upon termination of its membership with the SCCP. This is subject to approval by the
SEC.

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.

The Group’s liabilities as a central counterparty are limited only to the extent of the value of the due to CTGF. 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. In addition, the Parent Company has policies in
place where brokers, listed companies and market data vendors are penalized either monetary, suspension or termination of
services for nonpayment of their accounts.
88
As of December 31, 2009 and 2008, the assets of the CTGF (included under Investments of CTGF account in the consolidated
Annual Report 2009

balance sheet) consist of:

2009 2008
Cash in bank P
= 26,919,241 P
= 18,375,562
Accounts receivable 1,513,174 422,949
Accrued interest receivable 4,074,286 5,431,526
AFS investments - debt securities:
Principal amount 425,335,000 373,332,383
Net unamortized (discount)/premium (1,171,323) 6,539,810
Net unrealized losses on AFS investments (819,567) (1,409,520)
455,850,811 402,692,710
Less management fees 454,997 404,102
P
= 455,395,814 P
= 402,288,608

For the management and administration of CTGF, the SCCP is entitled to a management fee computed at 0.1% of CTGF fund
level as of the close of year. Management fee amounting to P
= 0.5 million and P
= 0.4 million in 2009 and 2008, respectively, is
included under “Other revenues” account in the Group’s statement of comprehensive income.

As of December 31, 2009 and 2008, AFS investments with principal amounts of P
= 391.3 million and P
= 311.0 million,
respectively, will mature within one year from balance sheet date.

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

2009 2008
Balance at beginning of year (P
= 1,409,520) P
= 659,923
Change in fair value 589,953 (2,069,443)
Balance at end of year (P
= 819,567) (P
= 1,409,520)

The CTGF is 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.

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.

For financial statement presentation, the CTGF is presented in the asset section of the consolidated balance sheets under
investments of CTGF and in the liabilities section of the consolidated balance sheets under Due to CTGF.

12. Other Assets

This account consists of:

Consolidated Parent Company

2009 2008 2009 2008
Deposits in bank P
= 15,098,865 P
= 14,687,141 P
= 15,098,865 P
= 14,687,141
Deferred tax asset - net (Note 20) 12,922,043 5,523,739 12,922,043 5,523,739
Other investments (Note 15) 10,480,181 10,480,181 10,480,181 10,480,181
Computer software 10,269,567 15,560,105 – –

Annual Report 2009

Prepaid tax – 3,992,759 – 3,992,759
Others 54,107 2,414,345 54,107 2,414,345
P
= 48,824,763 P
= 52,658,270 P
= 38,555,196 P
= 37,098,165

As of December 31, 2009 and 2008, deposits in bank amounting to P =15.1 million and P
= 14.7 million, respectively, represents
the aggregate security deposit for the surety bonds posted by the Parent Company in favor of the National Labor Relations
Commission (NLRC) in connection with pending labor cases which are on appeal. Under the Rules of the NLRC, the said
amount may not be withdrawn by the Parent Company until final disposition of the cases.
89
Other investments pertain to the donation of FBDC in favor of the Parent Company of 10,480,181 shares of Crescent West

The Philippine Stock Exchange, Inc.

Development Corporation (CWDC). This is further discussed in Note 15.

The movements in the computer software follow:

2009 2008
Cost:
Balance at beginning of year P
= 36,469,041 P
= 36,183,925
Additions – 285,116
Balance at end of year 36,469,041 36,469,041
Accumulated amortization:
Balance at beginning of year 20,908,936 15,637,406
Amortization 5,290,538 5,271,530
Balance at end of year 26,199,474 20,908,936
Net book value P
= 10,269,567 P
= 15,560,105

13. Accounts Payable, Accrued Expenses and Other Current Liabilities

This account consists of:

Consolidated Parent Company

2009 2008 2009 2008
Due to SEC P
= 60,354,190 P
= 37,967,320 P
= 60,354,190 P
= 37,967,320
Accrued expenses 20,229,274 21,930,282 18,131,792 17,592,495
Accounts payable 14,409,471 33,321,929 10,453,471 32,462,639

(Forward)
 Consolidated Parent Company
2009 2008 2009 2008
Taxes payable P
= 10,687,861 P
= 6,536,080 P
= 9,257,132 P
= 5,004,550
Others 2,647,906 3,038,411 2,647,906 3,029,410
P
= 108,328,702 P
= 102,794,022 P
= 100,844,491 P
= 96,056,414
The Philippine Stock Exchange, Inc.

Due to SEC represents 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.

Accrued expenses, accounts payable, taxes payable and others are noninterest-bearing and are normally settled within the
next financial year.

14. Deferred Fees

This account consists of:

2009 2008
90
Listing fees P
= 12,843,186 P
= 1,080,640
Data feed income 5,640,183 5,654,398
Annual Report 2009

Fines and penalties 4,422,442 3,339,821

Listing maintenance fees 2,992,500 1,430,000
Others 2,787,408 812,530
P
= 28,685,719 P
= 12,317,389

15. Donated Capital

As of December 31, 2009 and 2008, this account consists of donations from:

ALI (Note 9) P
= 235,690,154
PRHC (Note 9) 139,542,000
FBDC (Note 12) 10,480,181
United States Agency International Development 1,925,250
P
= 387,637,585

On November 12, 2002, Fort Bonifacio Development Corporation (FBDC) and the Parent Company executed a Definitive
Agreement with the following salient terms and conditions: (i) the Parent Company agrees to relocate its headquarters, majority
of its management offices and its unified trading operations in equity securities for the National Capital Region 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 National Capital Region.

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, 2006 14.32% or 5,247,419 shares
January 7, 2007 14.28% or 5,232,762 shares
January 7, 2008 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, 2007 and 2006, 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 investments (see Note 12).

In June 2008, 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, 2008, 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 National Capital Region to the Bonifacio Global City.

As of December 31, 2009, negotiations among the Parent Company, FBDC and ALI are still pending.

16. Equity

Capital stock consists of:

2009 2008
Capital stock - P
= 1.00 par value
Authorized - 97,800,000 shares
Issued - 30,651,918 shares in 2009

Annual Report 2009

and 30,555,024 shares in 2008 P
= 30,651,918 P
= 30,555,024
Additional paid-in capital 999,881,273 976,786,993
Treasury stock (100,007 shares in 2009
and 100,008 shares in 2008) (68,000,007) (68,000,008)
P
= 962,533,184 P
= 939,342,009

The movements in capital stock follow:

91
Shares Amount

The Philippine Stock Exchange, Inc.

2009 2008 2009 2008
Balance at beginning of year 30,555,024 15,277,513 P
= 30,555,024 P
= 15,277,513
Issuance of stock dividends
during the year – 15,277,511 – 15,277,511
Issuance of capital stock (Note 26) 96,894 – 96,894 –
Balance at end of year 30,651,918 30,555,024 P
= 30,651,918 P
= 30,555,024

The movements in additional paid-in capital follow:

2009 2008
Balance at beginning of year P
= 976,786,993 P
= 976,506,942
Issuance of capital stock 22,887,016 –
Share-based payment (Note 26) 207,264 280,051
Balance at end of year P
= 999,881,273 P
= 976,786,993

The movements in the treasury stock follow:

Shares Amount
2009 2008 2009 2008
Balance at beginning of year 100,008 2 P
= 68,000,008 P
=2
Acquisitions – 100,006 – 68,000,006
Reissuance (1) – (1) –
Balance at end of year 100,007 100,008 P
= 68,000,007 P
= 68,000,008

In 2008, the Parent Company’s BOD appropriated portion of its retained earnings amounting to P
= 68.0 million for purposes of
acquiring its own stocks.
 On September 10, 2008, the Parent Company’s BOD approved the issuance of the 100% stock dividend declared by the
Exchange on October 22, 2008 to stockholders of record as of September 26, 2008.

Details of the Parent Company’s cash dividend distribution follow:

Dividend
The Philippine Stock Exchange, Inc.

Date of Declaration Per Share Total Amount Record Date Payment Date
February 25, 2009 P
= 8.00 P
= 243,178,000 March 12, 2009 March 25, 2009
March 26, 2008 20.00 305,550,100 April 15, 2008 May 15, 2008
February 14, 2007 8.80 134,442,044 March 1, 2007 March 15, 2007

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 P = 101,100 plus a daily
fine of P
=100 for every day of delay of compliance because the total broker ownership in the Exchange exceeds the allowable
= 500. The Exchange is studying the alternative
limit. Starting March 2009, the daily fine for every day of delay of compliance is P
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
92 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.
Annual Report 2009

The Group considers the following as capital:

Consolidated Parent Company

2009 2008 2009 2008
Capital stock P
= 30,651,918 P= 30,555,024 P
= 30,651,918 P
= 30,555,024
Additional paid-in capital 999,881,273 976,786,993 999,881,273 976,786,993
Deposit for future subscription 736,434 5,422,349 736,434 5,422,349
Retained earnings:
Unappropriated 451,771,509 487,206,261 394,191,441 429,703,012
Donated capital 387,637,585 387,637,585 387,637,585 387,637,585
Appropriated 71,000,000 71,000,000 71,000,000 71,000,000
Treasury stock (68,000,007) (68,000,008) (68,000,007) (68,000,008)
Net unrealized gain on available-for-
sale investments 41,735,891 16,434,488 41,821,145 15,915,890
P
= 1,915,414,603 P
= 1,907,042,692 P
= 1,857,919,789 P
= 1,849,020,845

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 of December 31, 2009 and 2008.

The Group adopts a practice of providing shareholders with regular dividends.

17. Interest Income

This account consists of interest income from:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
AFS investments P
= 75,435,240 P
= 100,624,186 P
= 106,120,160 P
= 69,577,411 P = 93,999,853 P
= 100,218,306
Cash equivalents 10,723,504 8,702,603 824,134 10,031,132 7,815,240 824,134
Cash in bank 618,252 888,439 699,570 86,530 501,943 269,544
Short-term investments – 22,142 4,112,746 – – 4,112,746
Others 53,350 465,770 580,973 53,350 443,628 580,973
P
= 86,830,346 P
= 110,703,140 P
= 112,337,583 P
= 79,748,423 P= 102,760,664 P
= 106,005,703
18. Compensation and Other Related Staff Costs

This account consists of:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
Salaries and wages P
= 115,530,597 P
= 95,205,235 = 82,653,272 P
P = 107,274,911 P = 87,485,106 P
= 75,802,382
Retirement and
separation cost
(Note 21) 12,014,599 6,583,074 8,970,849 10,679,805 5,519,270 7,989,992
Other employee
benefits 39,262,138 27,177,407 52,524,806 35,760,672 23,311,434 47,729,477
P
= 166,807,334 P
= 128,965,716 = 144,148,927 P
P = 153,715,388 P
= 116,315,810 P
= 131,521,851

Other employee benefits include the share-based payment expense amounting to P = 4.4 million and P
=0.3 million for the Group
and P
= 4.3 million and P
= 0.2 million for the Parent Company in 2009 and 2008, respectively (see Note 26).

19. Occupancy Costs

Annual Report 2009

This account consists of:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
Utilities P
= 21,832,797 P
= 22,171,291 P
= 20,316,436 P
= 19,124,678 P
= 19,088,700 P
= 19,949,025
Condominium dues 9,947,577 9,931,799 9,930,078 9,947,577 9,931,799 9,930,078
Security and janitorial
93
services 9,300,171 9,297,845 8,081,996 9,300,171 9,297,845 8,081,997

The Philippine Stock Exchange, Inc.

P
= 41,080,545 P
= 41,400,935 P
= 38,328,510 P
= 38,372,426 P
= 38,318,344 P
= 37,961,100

20. Income Taxes

Current tax regulations provide that effective July 1, 2006, the RCIT rate shall be 35% until December 31, 2008. Starting
January 1, 2009, the RCIT rate shall be 30%.

The provision for (benefit from) income tax consists of:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
Corporate P
= 65,091,891 P = 96,981,788 P
= 204,459,332 P
= 22,066,406 P
= 59,919,511 P
= 128,627,209
Final 15,854,903 21,514,974 21,645,018 14,438,518 19,926,478 20,378,642
Deferred (7,398,304) 13,934,622 (9,522,654) (7,398,304) 13,934,623 (9,522,654)
P
= 73,548,490 P= 132,431,384 P
= 216,581,696 P
= 29,106,620 P
= 93,780,612 P
= 139,483,197

As of December 31, 2009 and 2008, the Group and the Parent Company did not recognize the deferred tax asset on the
following temporary differences since management believes that these deductible temporary differences may not be realized in
the future:

Consolidated Parent Company

2009 2008 2009 2008
Allowance for impairment losses P
= 23,956,651 P
= 23,856,651 P
= 23,956,651 P
= 23,856,651
Retirement liability and other
employee benefits 4,929,091 3,594,297 – –
P
= 28,885,742 P
= 27,450,948 P
= 23,956,651 P
= 23,856,651
 The components of the net deferred tax assets (included under the Other assets account in the balance sheet) are as follows:

Consolidated Parent Company

2009 2008 2009 2008
Deferred tax asset on:
Unamortized past service costs P
= 6,177,896 P
= 1,776,730 P
= 6,177,896 P
= 1,776,730
The Philippine Stock Exchange, Inc.

Accrued expenses 5,927,584 2,233,073 5,927,584 2,233,073

Allowance for impairment losses 2,986,870 4,427,249 2,986,870 4,427,249
Unrealized foreign exchange
losses 1,065,076 – 1,065,076 –
Retirement liability – 742,090 – 742,090
16,157,426 9,179,142 16,157,426 9,179,142
Deferred tax liability on:
Retirement asset (3,235,383) – (3,235,383) –
Unrealized foreign exchange
gains – (3,655,403) – (3,655,403)
P
= 12,922,043 P
= 5,523,739 P
= 12,922,043 P
= 5,523,739

94 The reconciliation of provision for income tax computed at the statutory corporate income tax rate to provision for income tax
shown in the statement of comprehensive income follows:
Annual Report 2009

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
At statutory income tax
rate P
= 84,387,521 P= 148,368,771 P
= 227,500,289 P
= 71,031,915 P
= 175,411,258 P
= 153,085,308
Adjustments for:
Change in
unrecognized
deferred tax assets 430,438 204,915 3,721,940 30,000 – –
Tax-paid income (10,194,201) (17,234,126) (17,673,136) (9,486,009) (16,039,754) (16,723,354)
Equity in net income of
an associate (1,065,983) – – – – –
Dividend income (9,285) – (9,363) (32,469,286) (66,511,515) (3,299,363)
Effect of change in tax
rate – 1,091,824 – – 920,623 –
Nondeductible expenses – – 3,041,966 – – 6,420,606
Provision for income tax P = 73,548,490 P= 132,431,384 P
= 216,581,696 P
= 29,106,620 P
= 93,780,612 P
= 139,483,197

21. 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 consolidated 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 liability as of January 1, 2009 and 2008 are shown below:

Parent Company SCCP

2009 2008 2009 2008
Discount rate 11.60% 7.42% 13.35% 10.33%
Expected rate of return on assets 6.00% 6.00% – –
Future salary increases 10.00% 8.00% 10.00% 8.88%

As of December 31, 2009 and 2008, discount rates used are 11.04% and 11.60%, respectively, by the Parent Company and
9.18% and 10.35%, respectively by SCCP.
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.

Actuarial valuation of the Parent Company is generally made every year. The latest actuarial valuation studies of the
retirement plan of the Parent Company and SCCP was made on December 31, 2009.

The retirement asset as of December 31, 2009 and retirement liability recognized in the balance sheets of the Parent Company
as of December 31, 2008 are as follows:

2009 2008
Present value of the obligation P
= 45,201,713 P
= 35,623,584
Fair value of plan assets (38,741,708) (14,509,085)
6,460,005 21,114,499
Unrecognized actuarial losses (17,244,617) (18,640,864)
Net retirement (asset) liability (P
= 10,784,612) P
= 2,473,635

The movements of unrecognized actuarial losses as of December 31, 2009 and 2008 are as follows:

2009 2008

Annual Report 2009

Balance at beginning of year (P
= 18,640,864) (P= 7,885,516)
Actuarial loss on obligation (303,810) (10,411,037)
Actuarial gain (loss) on plan assets 1,096,917 (731,019)
(17,847,757) (19,027,572)
Actuarial loss recognized 603,140 386,708
Balance at end of year (P
= 17,244,617) (P
= 18,640,864)

The net unfunded retirement obligation recognized in the balance sheets of SCCP as of December 31, 2009 and 2008 are as 95
follows:

The Philippine Stock Exchange, Inc.

2009 2008
Present value of the obligation P
= 7,221,418 P
= 4,097,548
Unrecognized actuarial losses (2,327,466) (538,390)
Net unfunded retirement obligation P
= 4,893,952 P
= 3,559,158

The movements in the retirement liability (asset) of the Parent Company as of December 31, 2009 and 2008 are as follows:

2009 2008
Balance at beginning of year P
= 2,473,635 (P
= 3,045,635)
Retirement expense 10,679,805 5,519,270
Contributions (23,938,052) –
Balance at end of year (P
= 10,784,612) P
= 2,473,635

The movements in the unfunded retirement obligation recognized in SCCP’s balance sheets are as follows:

2009 2008
Balance at beginning of year P
= 3,559,158 P
= 2,495,354
Retirement cost 1,334,794 1,063,804
Balance at end of year P
= 4,893,952 P
= 3,559,158
 Changes in the present value of the defined benefit obligation are as follows:

Parent Company SCCP

2009 2008 2009 2008
Balance at beginning of year P
= 35,623,584 P
= 20,849,048 P
= 4,097,548 P
= 3,172,776
The Philippine Stock Exchange, Inc.

Actuarial loss (gain) 303,810 10,411,037 1,794,436 (124,626)

Current service cost 6,814,874 4,546,113 782,411 721,650
Interest cost 4,132,336 1,546,999 547,023 327,748
Benefits paid (1,672,891) (1,729,613) – –
Balance at end of year P
= 45,201,713 P
= 35,623,584 P
= 7,221,418 P
= 4,097,548

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

2009 2008
Balance at beginning of year P
= 14,509,085 P
= 16,009,167
Expected return on plan assets 870,545 960,550
Benefits paid (1,672,891) (1,729,613)
96 Actuarial gain (loss) 1,096,917 (731,019)
Contributions 23,938,052 –
Annual Report 2009

Balance at end of year P

= 38,741,708 P
= 14,509,085

The retirement expense included under Compensation and other related staff costs in the statements of comprehensive income
are as follows:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
Current service cost P
= 7,597,285 P
= 5,267,763 P
= 4,886,175 P
= 6,814,874 P= 4,546,113 P
= 4,232,092
Interest cost 4,679,359 1,874,747 1,237,703 4,132,336 1,546,999 1,005,129
Net actuarial loss
recognized 608,500 401,113 3,045,048 603,140 386,707 2,950,848
Expected return on plan
assets (870,545) (960,550) (558,077) (870,545) (960,550) (558,077)
P
= 12,014,599 P
= 6,583,073 P
= 8,610,849 P
= 10,679,805 P
= 5,519,269 P
= 7,629,992

The actual return on the plan assets of the Parent Company amounted to P
= 2.0 million in 2009, P
= 0.1 million in 2008 and
P
= 0.5 million in 2007.

The major categories of the Parent Company’s plan assets as a percentage of the fair value of total plan assets as of
December 31, 2009 and 2008 are as follows:

2009 2008
Investment in government debt securities 70.44% 93.41%
Investment in private debt securities 28.83% 4.29%
Other assets 0.73% 2.30%

Amounts for the current and previous years are as follows:

Parent Company
2009 2008 2007 2006
Present value of the obligation P
= 45,201,713 P
= 35,623,584 P
= 20,849,048 P
= 13,582,821
Fair value of plan assets (38,741,708) (14,509,085) (16,009,167) (5,580,768)
Deficit 6,460,005 21,248,969 4,839,881 8,002,053
Experience adjustment on plan liabilities (1,918,317) 19,205,036 (614,703) 2,655,360
Experience adjustment on plan assets 100,965 (813,601) (35,825) 2,750,100
 SCCP
2009 2008 2007 2006
Present value of the obligation P
= 7,221,418 P
= 4,097,548 P
= 3,172,776 P
= 3,252,779
Deficit 7,221,418 4,097,548 3,172,776 3,252,779
Experience adjustment on plan liabilities 157,451 229,566 733,041 393,273

22. 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 of balance sheet date.

The basic and diluted earnings per share are the same as there were no dilutive potential common shares outstanding.

2009 2008 2007

Net income (a) P
= 207,743,248 P
= 291,479,390 P
= 433,419,130
Weighted average number of
outstanding common
shares (b) 30,518,598 30,521,687 30,555,025
Basic/diluted earnings per

Annual Report 2009

share (a/b) P
= 6.81 P
= 9.55 P
= 14.18

23. 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 subjected to common control or common significant influence. Related parties may be individuals or corporate 97
entities. Related parties include brokers that are stockholders of the Parent Company. The Parent Company, in its normal

The Philippine Stock Exchange, Inc.

course of business, has transactions with related parties. Transactions between related parties are based on terms similar to
those offered to non-related parties.

The year-end balances in respect of brokers (stockholders of the Exchange) included in the balance sheets are as follows:

2009 2008
Accounts and other receivable from brokers - net of
allowance for impairment losses of P
= 861,659 in 2009
and P= 1,652,659 in 2008 P
= 1,141,959 P
= 1,830,916

Other related party transactions include advance payments made by the Parent Company on certain administrative expenses
of SCCP such as utilities, supplies, hardware and software maintenance, and other employee benefits, which are subsequently
billed to and collected from SCCP. As of December 31, 2009 and 2008, accounts and other receivables of the Parent
Company from SCCP are eliminated in the consolidated balance sheet.

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

2009 2008 2007

Trading-related fees:
Transaction P
= 66,205,348 P
= 58,837,694 P
= 111,245,368
Block sales 33,210,297 17,552,424 22,579,875
Subscription 18,243,119 16,754,391 15,418,514
Interest income – – 566,187
Other revenues 5,206,946 1,971,321 2,344,080

Other revenues includes 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 statements of comprehensive income follows:

Consolidated Parent Company

2009 2008 2007 2009 2008 2007
The Philippine Stock Exchange, Inc.

Short-term employee
benefits P
= 54,210,714 P
= 44,728,139 P
= 33,617,340 P
= 49,852,845 P
= 40,364,037 P
= 29,114,889
Share-based payments 2,082,815 135,153 – 1,904,840 106,003 –
Post-employment
pension and
medical benefits 887,173 376,082 569,038 887,173 376,082 569,038
P
= 57,180,702 P
= 45,239,374 P
= 34,186,378 P
= 52,644,858 P
= 40,846,122 P
= 29,683,927

Short-term employee benefits include salaries, paid annual leave, vacation and sick leave, profit sharing and bonuses, and
non-monetary benefits.

98 24. Segment Reporting

Annual Report 2009

PFRS 8, Operating Segments, requires that a public business enterprise report financial and descriptive information about its
reportable segments. Reportable segments are operating segments that meet specified criteria. Operating segments are
components of an entity about which separate financial information is available that is evaluated regularly by the chief decision
maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be
reported on the same basis as is used internally for evaluating the performance of operating segments and deciding how to
allocate resources to operating segments.

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 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.

2009 2008 2007

Revenues P
= 622,258,910 P
= 729,112,259 P
= 993,405,920
Expenses 344,520,446 301,186,796 343,405,094
Equity in net income (loss) of an associate 3,553,274 (4,014,689) –
Income before income tax 281,291,738 423,910,774 650,000,826
Net income 207,743,248 291,479,390 433,419,130
Basic/diluted earnings per share 6.81 9.55 14.18

25. Contingencies

In 2007, the Parent Company’s BOD appropriated a portion of its retained earnings amounting to P = 3.0 million to cover potential
liability cases filed against the Parent Company, its directors and/or officers. As of December 31, 2008, 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 of December 31, 2009, 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 of December 31, 2009 and 2008. Details of stock exchange transactions outstanding as of balance sheet dates are
as follows:
 2009 2008
Value of shares not yet delivered (net selling) P
= 2,754,412,843 P
= 1,939,127,351
Amount of purchases unpaid (due clearing) 854,235,301 904,920,114
P
= 3,608,648,144 P
= 2,844,047,465

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 of January 2010 and 2009, all transactions outstanding as of balance sheet date were settled. Accordingly, no failed trades
occurred from these transactions.

26. Share-based Payments

On March 26, 2008, the BOD of the Exchange approved the ESPP for its employees and SCCP’s employees, with the

Annual Report 2009

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 of the offer
date is eligible;
c. offer date is annual for a period of 3 years exercisable from July to December of each year;
d. offer price is fixed based on Volume Weighted Average Price of PSE shares of the month preceding the offer date;
99
e. discount of 10% from the offer price; and
f. cash payment is required during the exercise period.

The Philippine Stock Exchange, Inc.

The rollforward analysis of number of shares on ESPP is as follows:

2009 2008
Outstanding at beginning of year 7,760 –
Granted during the year 50,000 50,000
Exercised during the year (57,748) (42,240)
Outstanding at end of year 12 7,760

In 2008, total of 50,000 shares of the Exchange were available for availment and the subscription period was from December 2
to 24, 2008 with an exercise price of P
= 128.37 per share while the fair value at grant date was P
= 135.00, which is based on
quoted market price. The BOD also approved the share allocation on a per rank basis for the offer period.

Out of the 50,000 shares of the Exchange, 36,940 shares and 5,300 shares were availed by Exchange’s and SCCP’s
employees, respectively, resulting to an expense amounting to P = 0.3 million and P
= 0.2 million for the Group and Parent
Company, respectively, and a credit to deposit for future stock subscription and additional paid-in capital amounting to
P
= 5.4 million and P
= 0.3 million, respectively.

The Exchange processed and finalized the subscription of the availed shares in January 2009 and the stocks were transferred
in the name of the employees on January 29, 2009.

In 2009, a total of 57,760 shares of the Exchange were available for availment, which consist of 50,000 original shares for the
second tranche and the remaining 7,760 shares from the first tranche. Subscription period was from July to December 2009
with an exercise price of P
= 238.02 per share while the average fair value at grant date was P
= 320.45, which is based on quoted
market price.
 Out of the 57,748 shares of the Exchange that were availed of and fully paid by the participants under the ESPP, 52,653
shares and 5,095 shares were availed by the Exchange’s and SCCP’s employees, respectively, resulting to an expense
amounting to P= 4.7 million and P
= 4.1 million for the Group and Parent Company, respectively, and a credit to deposit for future
stock subscription and additional paid-in capital amounting to P= 0.7 million and P
= 0.2 million, respectively.
The Philippine Stock Exchange, Inc.

27. Events After the Reporting Date

On March 10, 2010, the BOD approved the declaration of regular cash dividends of P = 3.40 per share and special cash
dividends of P
=6.60 per share out of the unappropriated retained earnings of the Parent Company as of December 31, 2009 in
favor of stockholders of record as of March 25, 2010. The cash dividends will be paid on April 21, 2010.

100
Annual Report 2009
Listed Issues as of Yearend 2009
Issue Code Par Value
Financials Sector Cosmos Bottling Corporation CBC 1
Banks Ginebra San Miguel, Inc. GSMI 1
Asiatrust Development Bank, Inc. ASIA 10
Banco de Oro Unibank, Inc. BDO 10
Banco Filipino Savings & Mortgage Bank BF 100
Bank of the Philippine Islands BPI 10
China Banking Corporation CHIB 100
Chinatrust (Philippines) Commercial Bank Corporation CHTR 10
Citystate Savings Bank, Inc. CSB 10
Export and Industry Bank, Inc. “A” EIBA 0.25
Export and Industry Bank, Inc. “B” EIBB 0.25
Metropolitan Bank & Trust Company MBT 20
Philippine Bank of Communications PBC 100
Philippine National Bank PNB 40
Philippine Savings Bank PSB 10
Philippine Trust Company PTC 10
Rizal Commercial Banking Corporation RCB 10
Security Bank Corporation SECB 10
Union Bank of the Philippines UBP 10
Issue Code Par Value
Jollibee Foods Corporation JFC 1
Liberty Flour Mills, Inc. LFM 10
Pancake House, Inc. PCKH 1
San Miguel Pure Foods Company, Inc. “A” PF 10
San Miguel Pure Foods Company, Inc. “B” PFB 10
Pepsi-Cola Products Philippines, Inc. PIP 0.15
Roxas & Company, Inc. RCI 1
RFM Corporation RFM 1
Roxas Holdings, Inc. ROX 1
Swift Foods, Inc. SFI 1
San Miguel Brewery, Inc. SMB 1
San Miguel Corporation “A” SMC 5
San Miguel Corporation “B” SMCB 5
Tanduay Holdings, Inc. TDY 1
Philippine Tobacco Flue-Curing and Redrying Corporation TFC 1
Alliance Tuna International, Inc. TUNA 1
Universal Robina Corporation URC 1

Annual Report 2009

Other Financial Institutions Vitarich Corporation VITA 1
ATR KimEng Financial Corporation ATRK 1 Victorias Milling Company, Inc. VMC 10
Bankard, Inc. BKD 1 Construction, Infrastructure & Allied Services
BDO Leasing and Finance, Inc. BLFI 1 AGP Industrial Corporation “A” AGP 6
CitisecOnline.com, Inc. COL 1 AGP Industrial Corporation “B” AGPB 6
First Abacus Financial Holdings Corporation FAF 1 Bacnotan Consolidated Industries, Inc. BCI 10
Filipino Fund, Inc. FFI 1 Concrete Aggregates Corporation “A” CA 10
First Metro Investment Corporation FMIC 10 Concrete Aggregates Corporation “B” CAB 10 101
I-Remit, Inc. I 1 Southeast Asia Cement Holdings, Inc. CMT 0.35

The Philippine Stock Exchange, Inc.

Medco Holdings, Inc. MED 1 EEI Corporation EEI 1
Manulife Financial Corporation MFC - Federal Resources Investment Group, Inc. FED 1
National Reinsurance Corporation of the Philippines NRCP 1 Holcim Philippines, Inc. HLCM 1
The Philippine Stock Exchange, Inc. PSE 1 Mariwasa Siam Holdings, Inc. MMI 1
Sun Life Financial Inc. SLF - Philippine National Construction Corporation PNC 10
Vantage Equities, Inc. V 1 Republic Cement Corporation RCM 1
Industrial Sector Supercity Realty Development Corporation SRDC 1
Electricity, Energy, Power & Water Sanitary Wares Manufacturing Corporation SWM 1
Alsons Consolidated Resources, Inc. ACR 1 TKC Steel Corporation T 1
Aboitiz Power Corporation AP 1 Vulcan Industrial & Mining Corporation VUL 1
Energy Development (EDC) Corporation EDC 1 Chemicals
First Gen Corporation FGEN 1 Chemical Industries of the Philippines CIP 10
First Philippine Holdings Corporation FPH 10 Chemrez Technologies, Inc. COAT 1
Manila Electric Company MER 10 Euro-Med Laboratories Philippines, Inc. EURO 1
Manila Water Company, Inc. MWC 1 LMG Chemicals Corporation LMG 1
Petron Corporation PCOR 1 Metro Alliance Holdings & Equities Corporation “A” MAH 1
Phoenix Petroleum Philippines, Inc. PNX 1 Metro Alliance Holdings & Equities Corporation “B” MAHB 1
East Asia Power Resources Corporation PWR 1 Manchester International Holdings Unlimited Corporation “A” MIH 1
SPC Power Corporation SPC 1 Manchester International Holdings Unlimited Corporation “B” MIHB 1
Trans-Asia Oil and Energy Development Corporation TA 1 Mabuhay Vinyl Corporation MVC 1
Vivant Corporation VVT 1 Pryce Corporation PPC 1
Food, Beverage & Tobacco Diversified Industrials
Alaska Milk Corporation AMC 1 Active Alliance, Inc. AAI 1
AgriNurture, Inc. ANI 1 Filsyn Corporation “A” FYN 5
Bogo-Medellin Milling Company, Inc BMM 10 Filsyn Corporation “B” FYNB 5
Central Azucarera de Tarlac, Inc. CAT 10 Ionics, Inc. ION 1
 Issue Code Par Value
Macondray Plastics, Inc. MRAY 1
MUSX Corporation MUSX 0.1
PICOP Resources, Inc. PCP 1
Panasonic Manufacturing Philippines Corporation PMPC 1
Splash Corporation SPH 1
Steniel Manufacturing Corporation STN 1
Holding Firms Sector Ever-Gotesco Resources & Holdings, Inc. EVER 1
Asia Amalgamated Holdings AAA 1
Abacus Consolidated Resources and Holdings, Inc. ABA 1
Ayala Corporation AC 50
The Philippine Stock Exchange, Inc.
Aboitiz Equity Ventures, Inc. AEV 1
Alliance Global Group, Inc. AGI 1
AJO.net Holdings, Inc. AJO 0.1
A. Soriano Corporation ANS 1
Alcorn Gold Resources Corporation APM 0.01
Anglo Philippine Holdings Corporation APO 1
ATN Holdings, Inc. “A” ATN 1
ATN Holdings, Inc. “B” ATNB 1
BHI Holdings, Inc. BH 100
Benpres Holdings Corporation BPC 1
DMCI Holdings, Inc. DMC 1
Fil-Estate Corporation FC 1
102 Filinvest Development Corporation FDC 1
F & J Prince Holdings Corporation “A” FJP 1
Annual Report 2009
F & J Prince Holdings Corporation “B” FJPB 1
Forum Pacific, Inc. FPI 1
House of Investments, Inc. HI 1.5
JG Summit Holdings, Inc. JGS 1
Jolliville Holdings Corporation JOH 1
Keppel Philippines Holdings, Inc. “A” KPH 1
Keppel Philippines Holdings, Inc. “B” KPHB 1
Lodestar Investment Holdings Corporation LIHC 1
Mabuhay Holdings Corporation MHC 1
Minerales Industrias Corporation MIC 1
MJC Investments Corporation MJIC 1
UEM Development Philippines, Inc. MK 1
Metro Pacific Investments Corporation MPI 1
Pacifica, Inc. PA 0.005
Prime Orion Philippines, Inc. POPI 1
Prime Media Holdings, Inc. PRIM 1
Republic Glass Holdings Corporation REG 1
Solid Group, Inc. SGI 1
Sinophil Corporation SINO 1
SM Investments Corporation SM 10
South China Resources, Inc. SOC 1
Seafront Resources Corporation SPM 1
Unioil Resources & Holdings Company, Inc. UNI 1
Wise Holdings, Inc. “A” WHI 1
Wise Holdings, Inc. “B” WHIB 1
Wellex Industries, Inc. WIN 1
Zeus Holdings, Inc. ZHI 1
Property Sector Imperial Resources, Inc. “A” IMP 5
Arthaland Corporation ALCO 0.18
Anchor Land Holdings, Inc. ALHI 1
Ayala Land, Inc. ALI 1
Araneta Properties, Inc. ARA 1
Belle Corporation BEL 1
A Brown Company, Inc. BRN 1
Cityland Development Corporation CDC 1
Crown Equities, Inc. CEI 0.1
Issue Code Par Value
Cebu Holdings, Inc. CHI 1
Cebu Property Ventures & Development Corporation “A” CPV 1
Cebu Property Ventures & Development Corporation “B” CPVB 1
Cyber Bay Corporation CYBR 1
Empire East Land Holdings, Inc. ELI 1
Eton Properties Philippines, Inc. ETON 1
Filinvest Land, Inc. FLI 1
Gotesco Land, Inc. “A” GO 1
Gotesco Land, Inc. “B” GOB 1
Highlands Prime, Inc. HP 1
Interport Resources Corporation “A” IRC 1
Interport Resources Corporation “B” IRCB 1
Keppel Philippines Properties, Inc. KEP 1
City & Land Developers, Inc. LAND 1
Fil-Estate Land, Inc. LND 1
Marsteel Consolidated, Inc. “A” MC 0.01
Marsteel Consolidated, Inc. “B” MCB 0.01
Megaworld Corporation MEG 1
MRC Allied Industries, Inc. MRC 1
Philippine Estates Corporation PHES 1
Primetown Property Group, Inc. PMT 1
Polar Property Holdings Corporation PO 1
Primex Corporation PRMX 1
Robinsons Land Corporation RLC 1
Philippine Realty & Holdings Corporation RLT 1
Shang Properties, Inc. SHNG 1
Sta. Lucia Land, Inc. SLI 1
SM Development Corporation SMDC 1
San Miguel Properties, Inc. SMP 10
SM Prime Holdings, Inc. SMPH 1
Suntrust Home Developers, Inc. SUN 1
Universal Rightfield Property Holdings, Inc. UP 1
Uniwide Holdings, Inc. UW 1
Vista Land & Lifescapes, Inc. VLL 1
Services Sector
Media
ABS-CBN Broadcasting Corporation ABS 1
GMA Network, Inc. GMA7 1
Manila Bulletin Publishing Corporation MB 1
Manila Broadcasting Company MBC 1
Telecommunications
Digital Telecommunications Phils., Inc. DGTL 1
Globe Telecom, Inc. GLO 50
Liberty Telecoms Holdings, Inc. LIB 1
Pilipino Telephone Corporation PLTL 1
Philippine Telegraph & Telephone Corporation PTT 1
Philippine Long Distance Telephone Company “Common” TEL 5
Information Technology
Boulevard Holdings, Inc. BHI 0.1
DFNN Inc. DFNN 1
Imperial Resources, Inc. “B” IMPB 5
IPVG Corporation IP 1
Island Information & Technology, Inc. IS 0.01
ISM Communications Corporation ISM 0.01
Nextstage, Inc. NXT 1
Transpacific Broadband Group International, Inc. TBGI 1
PhilWeb Corporation WEB 1
Issue Code Par Value
Transportation Services The Philodrill Corporation OV 0.01
Asian Terminals, Inc. ATI 1
Aboitiz Transport System (ATSC) Corporation ATS 1
International Container Terminal Services, Inc. ICT 1
Keppel Philippines Marine, Inc. KPM 1
Lorenzo Shipping Corporation LSC 1
MacroAsia Corporation MAC 1
PAL Holdings, Inc. PAL 1
Metro Pacific Tollways Corporation TOL 1
Hotel & Leisure Benguet Corporation - 8% Cumulative Convertible Pref. A BCP 3.44
Acesite (Philippines) Hotel Corporation DHC 1
Grand Plaza Hotel Corporation GPH 10
Leisure & Resorts World Corporation LR 1
Manila Jockey Club, Inc. MJC 1
Mondragon International Philippines, Inc. MON 1
Premiere Entertainment Philippines, Inc. PEP 1
Philippine Racing Club, Inc. PRC 1
Waterfront Philippines, Inc. WPI 1
Education PLDT 10% Cumulative Convertible Pref. Series B TELB 10
Centro Escolar University CEU 1
Far Eastern University, Inc. FEU 100
iPeople, Inc. IPO 1
Diversified Services PLDT 10% Cumulative Convertible Pref. Series F TELF 10
APC Group, Inc. APC 1
EasyCall Communications Philippines, Inc. ECP 1
Information Capital Technology Ventures, Inc. ICTV 1
JTH Davies Holdings, Inc. JTH 0.5
Pacific Online Systems Corporation LOTO 1
MIC Holdings Corporation MET 100
Paxys, Inc. PAX 1
Prime Gaming Philippines, Inc. PGPI 1
Philcomsat Holdings Corporation PHC 1
Philippine Seven Corporation “Common” SEVN 1
Mining & Oil Sector PLDT 10% Cumulative Convertible Pref. Series Q TELQ 10
Mining PLDT 10% Cumulative Convertible Pref. Series R TELR 10
Atok-Big Wedge Company, Inc. “A” AB 1
Atok-Big Wedge Company, Inc. “B” ABB 1
Apex Mining Company, Inc. “A” APX 1
Apex Mining Company, Inc. “B” APXB 1
Abra Mining & Industrial Corporation AR 0.01
Atlas Consolidated Mining & Development Corporation AT 10
Benguet Corporation “A” BC 3
Benguet Corporation “B” BCB 3
Century Peak Metals Holdings Corporation CPM 1
Dizon Copper-Silver Mines, Inc. DIZ 1
GEOGRACE Resources Philippines, Inc. GEO 1
Lepanto Consolidated Mining Company “A” LC 0.1
Lepanto Consolidated Mining Company “B” LCB 0.1
Manila Mining Corporation “A” MA 0.01
Manila Mining Corporation “B” MAB 0.01
NiHAO Mineral Resources International, Inc. NI 1
Omico Corporation OM 0.01
Oriental Peninsula Resources Group, Inc. ORE 1
Philex Mining Corporation PX 1
Semirara Mining Corporation SCC 1
United Paragon Mining Corporation UPM 0.01
Oil
Basic Energy Corporation BSC 0.25
Oriental Petroleum and Mineral Corporation “A” OPM 0.01
Oriental Petroleum and Mineral Corporation “B” OPMB 0.01
Issue Code Par Value
PNOC Exploration Corporation “A” PEC 1
PNOC Exploration Corporation “B” PECB 1
PetroEnergy Resources Corporation PERC 1
Preferred
Allied Banking Corporation - 15% Cum. Convertible Pref. A ABC 1000
Ayala Corporation Preferred Class “A” Shares ACPA 100
Ayala Corporation Preferred Class “B” Shares ACPR 100
Aboitiz Transport System (ATSC) Corporation - Preferred ATSP 1
Banco Filipino Savings & Mortgage Bank - 15½% Cum. Conv. Pref. BFC 100
Banco Filipino Savings & Mortgage Bank - 15½% Cum. Non-Conv. Pref. BFNC 100
DMCI Holdings, Inc. - Cumulative Convertible Pref. DMCP 1
First Philippine Holdings Corporation - Preferred FPHP 100
Globe Telecom, Inc. - Preferred A GLO-PA 5
Philippine Bank of Communications - Preferred PBCP 25
Swift Foods, Inc. Convertible Pref. SFIP 1
PLDT 10% Cumulative Convertible Pref. Series A TELA 10
PLDT 10% Cumulative Convertible Pref. Series C TELC 10
PLDT 10% Cumulative Convertible Pref. Series D TELD 10
PLDT 10% Cumulative Convertible Pref. Series E TELE 10
PLDT 10% Cumulative Convertible Pref. Series G TELG 10
Annual Report 2009
PLDT 10% Cumulative Convertible Pref. Series H TELH 10
PLDT 10% Cumulative Convertible Pref. Series I TELI 10
PLDT 10% Cumulative Convertible Pref. Series J TELJ 10
PLDT 10% Cumulative Convertible Pref. Series K TELK 10
PLDT 10% Cumulative Convertible Pref. Series L TELL 10
PLDT 10% Cumulative Convertible Pref. Series M TELM 10
PLDT 10% Cumulative Convertible Pref. Series N TELN 10
PLDT 10% Cumulative Convertible Pref. Series O TELO 10 103
PLDT 10% Cumulative Convertible Pref. Series P TELP 10
The Philippine Stock Exchange, Inc.
PLDT 10% Cumulative Convertible Pref. Series S TELS 10
PLDT 10% Cumulative Convertible Pref. Series T TELT 10
PLDT 10% Cumulative Convertible Pref. Series U TELU 10
PLDT 10% Cumulative Convertible Pref. Series V TELV 10
PLDT 10% Cumulative Convertible Pref. Series W TELW 10
PLDT 10% Cumulative Convertible Pref. Series X TELX 10
PLDT 10% Cumulative Convertible Pref. Series Y TELY 10
PLDT 10% Cumulative Convertible Pref. Series Z TELZ 10
PLDT 10% Cumulative Convertible Pref. Series AA TLAA 10
PLDT 10% Cumulative Convertible Pref. Series BB TLBB 10
PLDT 10% Cumulative Convertible Pref. Series CC TLCC 10
PLDT 10% Cumulative Convertible Pref. Series DD TLDD 10
PLDT 10% Cumulative Convertible Pref. Series EE TLEE 10
Warrants, Philippine Deposit Receipts, Etc.
ABS-CBN Holdings Corporation - Phil. Deposit Receipts ABSP 0.10*
GMA Holdings, Inc. - Phil. Deposit Receipts GMAP 0.05*
Omico Corporation - Warrants OMW2 0.01*
Megaworld Corporation - Warrants MEGW1 1.00*
Small & Medium Enterprises
Makati Finance Corporation MFIN 1
Ripple E-Business International, Inc. RPL 1
*Exercise price
 List of Active Trading Participants
A & A SECURITIES, INC. 101
(Corporate Trading Participant)
SHIRLEY Y. BANGAYAN
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
The Philippine Stock Exchange, Inc.
Contact Information:
1906 Ayala Avenue Condominium
6776 Ayala Avenue, Makati City
Office: 891-1008 to 10
Exchange: 891-1008 to 10
Telefax: 891-1010
aasec@pldtdsl.net
A. T. DE CASTRO SECURITIES CORP. 104
(Corporate Trading Participant) Accounting 634-2105
ALEJANDRO T. DE CASTRO
(Nominee Trading Participant)
Nationality: FILIPINO
104 Trading Floor: AYALA
Contact Information:
Annual Report 2009
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7160 to 63
Exchange: 848-7160 to 63
Telefax: 848-7163
atcastro@info.com.ph
AAA SOUTHEAST EQUITIES, INC. 237
(Corporate Trading Participant)
D. ALFRED A. CABANGON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
G/F Fortune Life Building
162 Legaspi Street, Legaspi Village,
Makati City
Office: 816-2918
892-9841 to 49 loc. 103
Exchange: 891-9570 to 72
Fax: 812-1831
AB CAPITAL SECURITIES, INC. 112
(Corporate Trading Participant)
LAMBERTO M. SANTOS, JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
3rd Floor, Phinma Plaza
39 Plaza Drive, Rockwell Center
Makati City
Office: 898-7555
Exchange: 891-9135
Fax: 898-7597
abcsi@abcapital.com.ph
www.abcapitalonline.com
ABACUS SECURITIES CORPORATION 102
(Corporate Trading Participant)
PAULINO S. SOO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
29/F, East Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 634-5104
Exchange: 634-6993; 634-6842
Fax: Operations 634-5206
Inst’l. Sales 634-2107
Retail/Customer Svc. 634-2109
customerservice@abacus-sec.com
www.abacus-sec.com
ACCORD CAPITAL EQUITIES 103
CORPORATION
(Corporate Trading Participant)
PAUL L. WEE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
G/F, Unit EC-05B,
PSE Centre-East Tower, Exchange Rd.,
Ortigas Center, Pasig City
Office: (Trunk Line) 687-5071
687-3224; 687-3733
Exchange: 687-0911; 687-0936
Fax: 687-3738
info@accordcapital.ph
www.accordcapital.ph
ALAKOR SECURITIES CORPORATION 232
(Corporate Trading Participant)
GERARD ANTON S. RAMOS
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
5/F, Quad Alpha Centrum
125 Pioneer Street,
Mandaluyong City
Office: 631-8173;637-4496
Exchange: 634-6928 to 29
Fax: 631-5166
ALPHA SECURITIES CORPORATION 106
(Corporate Trading Participant)
JONATHAN JOSEPH S. KUI
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
23/F, Orient Square Building
Emerald Avenue, Ortigas Center,
Pasig City
Office: 638-2388 to 93; 638-3764
Exchange: 638-6692 to 93; 638-6689
Fax: 636-5108
alphasec@pldtdsl.com.ph
ANGPING & ASSOCIATES 110
SECURITIES, INC.
(Corporate Trading Participant)
WILMA C. CRISOSTOMO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Suite 2003-2004, The Peak
107 L. P. Leviste Street,
Salcedo Village, Makati City
Office: 848-2915
Office of the President 810-0930
Office of the EVP 848-2564
Exchange: 891-9115
Fax: 848-2572
wcris@angping.com.ph
sgogola@angping.com.ph
ANSALDO, GODINEZ & 111
COMPANY, INC.
(Corporate Trading Participant)
MARIANO U. GODINEZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
340 Nueva Street, Binondo, Manila
Office: 242-5124 to 25; 242-5127 to 31
Exchange: 634-5160 & 63; 634-6232 to 34;
634-6521 to 22
Fax: 242-5121
APEX PHILS. EQUITIES CORPORATION 255
(Corporate Trading Participant)
JOSE ROBERTO DELGADO
(Nominee Trading Participant)
Nationality: MALAYSIAN
Trading Floor: AYALA
Contact Information:
2/F, Mary Bachrach Building
Port Area, Manila
Office: 527-8888 loc. 219;
527-5291
Exchange: 891-8586
Fax: 527-8919; 527-8912
ARMSTRONG SECURITIES, INC. 388
(Corporate Trading Participant)
TONY O. KING
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
20/F, Equitable PCI Tower I
Makati Avenue cor.
H. V. dela Costa Street,
Makati City
Office: 878-4043
Exchange: 891-8534; 891-8542;
891-8563
Fax: 840-7175
ASIA PACIFIC CAPITAL 116
EQUITIES & SECURITIES CORP.
(Corporate Trading Participant)
DAVID O. CHUA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
24/F, Galleria Corporate Center
EDSA cor. Ortigas Avenue,
Quezon City
Office: 634-5621
Exchange: 891-9550 to 59; 891-8571
Fax: 634-5813
apcap@compass.com.ph
ASIASEC EQUITIES, INC. 118
(Corporate Trading Participant)
GIDEON G. SISON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
8/F, Chatham House
116 Valero cor. Herrera Streets,
Salcedo Village, Makati City
Office: 845-3421 to 26
Exchange: 891-9370 to 75
Fax: 845-3418
asiasec@info.com.ph
ASTRA SECURITIES CORP. 119
(Corporate Trading Participant)
BENITO B. H. ANG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6421 to 27
Exchange: 891-9126 to 27
Fax: 848-6428
astrasecurities@gmail.com
ATC SECURITIES, INC. 120
(Corporate Trading Participant)
ANSELMO TRINIDAD JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Status: ACTIVE
Contact Information:
Unit 6F, 6th Floor
8101 Pearl Plaza, Pearl Drive
Ortigas Center, Pasig City
Office: 683-0204; 687-1768
687-2866; 683-0201
Exchange: 891-9337 to 38
Fax: 687-1760
atcsettle@pacific.net.ph
ATR KIMENG SECURITIES, INC. 220
(Corporate Trading Participant)
RAMON B. ARNAIZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
17/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5298; 849-8888
Dealing Room 848-5288
Exchange: 891-9120;
891-9124 to 25
Fax: General 848-5738
Settlements 848-5285
atrke_sec@atr.com.ph
AURORA SECURITIES, INC. 167
EMMANUEL EDWARD C. CO
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
24/F, West Tower – PSE Centre,
Exchange Road, Ortigas Center,
Pasig City
Office: 634-8321 to 24
Exchange: 634-8321 to 24
Telefax: 634-8321
ausecinc@pldtdsl.net
B. H. CHUA SECURITIES CORPORATION 124
MICHAEL LI CHUA
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
872 G. Araneta Avenue, Quezon City
Office: 742-5850; 742-6032;
412-3444
Exchange: 891-9771 to 73
Telefax: 412-3448
BA SECURITIES, INC. 109
(Corporate Trading Participant)
ANG BIAO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Room 401-403, CLMC Building
259-267 EDSA, Mandaluyong City
Office: 727-5374; 722-0132
Exchange: 891-9672 to 75
Telefax: 722-0132
baseccom@info.com.ph
BDO SECURITIES CORPORATION 279
(Corporate Trading Participant)
EDUARDO V. FRANCISCO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
20th Floor, BDO South Tower,
Makati Ave. cor. H. V. dela Costa St.,
Makati City
Office: 878-4070; 840-7000
loc. 6391; 6385; 6382
840-7000 loc. 6386; 6392; 6068
Exchange: 848-5836; 848-7015
Fax: 840-7175
Annual Report 2009
BELSON SECURITIES, INC. 122
(Corporate Trading Participant)
EMMANUEL G. LIM
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
4/F, Belson House 105
271 EDSA, Mandaluyong City
The Philippine Stock Exchange, Inc.
Office: 724-7586 to 90; 724-7580
Exchange: 891-9860 to 68
Fax: 721-9238
BENJAMIN CO CA & COMPANY, INC. 123
(Corporate Trading Participant)
BENJAMIN CO CA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Rm. 301-305, Downtown Center Bldg.
516 Q. Paredes St., Binondo, Manila
Office: 241-1261; 241-1345
Exchange: 634-5186 to 90
Fax: 241-1261
BERNAD SECURITIES, INC. 272
(Corporate Trading Participant)
ELPHEGE WONG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
3/F, 1033 M. H. del Pilar Street,
Ermita, Manila
Office: 524-5326; 524-5186;
524-5267
Exchange: 635-6756 to 60; 635-5665
Fax: 523-7907
 BPI SECURITIES CORPORATION 126
(Corporate Trading Participant)
SPENCER T. YAP
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
19/F, BPI Head Office
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: Marketing 816-9190;
816-9192; 845-5541; 845-5543
Administration
The Philippine Stock Exchange, Inc.
845-5289; 816-9678
Operations
845-5735; 816-9554
Exchange: 891-9930; 845-5541;
848-5543; 845-5545
Fax: 818-7809; 845-5733
bpitrade@bpi.com.ph
www.bpitrade.com
CAMPOS, LANUZA & COMPANY, INC. 128
(Corporate Trading Participant)
GERARDO O. LANUZA JR.
(Nominee Trading Participant)
Nationality: FILIPINO
106 Trading Floor: TEKTITE
Contact Information:
Annual Report 2009
20/F, East Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 634-6881 to 87; 634-6888;
636-3134; 638-3510;
636-3135; 636-3138
Exchange: 636-3001 to 05
Fax: 636-1167
camposlanuza@yahoo.com
CENTURY SECURITIES CORPORATION 130
CHAN KOK BIN
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Rm. 1105 Galleria Corporate Center
EDSA cor. Ortigas Avenue, Quezon City
Office: 633-7044 to 46
Exchange: 891-9880 to 81
Fax: 633-7047
CITISECURITIES, INC. 133
(Corporate Trading Participant)
EDWARD K. LEE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
27/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 635-5735 to 40
Exchange: 634-6976 to 80
Fax: 634-6696
CITISECONLINE.COM., INC. 203
(Corporate Trading Participant)
CONRADO F. BATE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
2401B East Tower, PSE Centre,
Exchange Road, Ortigas Center,
Pasig City
Office: 636-5411
Fax: 634-6958; 645-4632
CLSA PHILIPPINES, INC. 323
(Corporate Trading Participant)
RAYMOND M. TEMPONGKO
(Nominee Trading Participant)
Nationality: DUTCH
Trading Floor: AYALA
Contact Information:
19/F Tower 2, The Enterprise Center
6766 Ayala Avenue, Makati City
Office: Trunkline: 860-4000
Sales & Dealing: 860-4030
Exchange: 891-9945; 759-4073
Fax: 860-4065
raymond.tempongko@clsa.com
COHERCO SECURITIES, INC. 387
(Corporate Trading Participant)
WILFRED T. CO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
8/F, Herco Center,
114 Benavidez Street, Legaspi Village,
Makati City
Office: 818-7736
Exchange: 848-7301
Fax: 818-7331
CUALOPING SECURITIES CORPORATION 141
(Corporate Trading Participant)
VICTOR SAY HIPEK
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Suite 1801 Tytana Centre
Plaza Lorenzo Ruiz, Binondo, Manila
Office: 241-0262; 309-4258
Exchange: 634-5745 to 46;
634-5180; 634-5755
Fax: 241-0352
DA MARKET SECURITIES, INC. 204
(Corporate Trading Participant)
NESTOR S. AGUILA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Unit 6, 3rd Floor, The Fort Strip Bldg.,
Bonifacio Center, Fort Bonifacio
Global City, Taguig, Metro Manila
Office: 887-5457; 887-6407
Exchange: 891-9143 to 44
Telefax: 887-5457
Exchange 891-9144
customercare@damarket.biz.ph
DAVID GO SECURITIES CORPORATION 143
(Corporate Trading Participant)
DAVID C. GO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Rm. 309 Federation Center Building
Muelle de Binondo, Binondo, Manila
Office: 242-2375 & 79; 242-2467
Exchange: 634-5048 to 49;
634-5178
Fax: 242-2467
dgosec@yahoo.com
DBP-DAIWA SECURITIES SMBC 142
PHILIPPINES, INC.
(Corporate Trading Participant)
No Nominee Trading Participant
as of March 31, 2010
Nationality: DUTCH
Trading Floor: AYALA
Contact Information:
18/F, Citibank Tower
8741 Paseo de Roxas, Makati City
Office: 813-7344; 813-7454
Exchange: 891-9109; 891-9119
Fax: 848-0105
admin@dbpdaiwasmbc.com.ph
DEUTSCHE REGIS PARTNERS, INC. 209
(Corporate Trading Participant)
EMMANUEL O. BAUTISTA
(Nominee Trading Participant)
Nationality: SINGAPOREAN
Trading Floor: AYALA
Contact Information:
23/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: Trunk line 894-6600
Research 894-6636 to 47
Sales 894-6651 to 58
Operations 894-6618 to 35
Exchange: 891-9090
Fax: Sales 894-6605
Research 894-6638
Operations 894-6622
DIVERSIFIED SECURITIES, INC. 145
(Corporate Trading Participant)
RAMON C. GARCIA JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
5/F, PDCP Bank Centre
Herrera cor. Alfaro Streets,
Salcedo Village, Makati City
Office: 892-2890; 892-4330;
753-5250 to 53
Exchange: 636-0814;
634-6630 to 31
Fax: 892-4330
wena_ruiz@hotmail.com
www.dtrade.net
DW CAPITAL, INC. 328
(Corporate Trading Participant)
DERWIN NGO WONG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
1403A West Tower, PSE Centre,
Exchange Road, Ortigas Center,
Pasig City
Office: 636-5796 to 97;
636-5793 to 95
Exchange: 636-5793 to 97
E. CHUA CHIACO SECURITIES, INC. 147
ERNESTO CHUA CHIACO
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
113 Rentas Street, Binondo, Manila
Office: 242-5145; 241-9293
Exchange: 891-9246 to 48
Fax: 243-3232
eccsi@yahoo.com
EAGLE EQUITIES, INC. 283
JOSEPH Y. ROXAS
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
779 Harvard Street, Mandaluyong City
Office: 724-1584; 725-2777
Exchange: 634-6684; 634-6283
Fax: 725-2777
EASTERN SECURITIES DEV’T. CORP. 150
(Corporate Trading Participant)
GENEROSA R. JACINTO
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Makati Sales Office:
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Binondo Head Office:
17/F, Tytana Building, Binondo, Manila
Office: Makati 848-5491 to 95
Binondo 242-4006 to 09
Exchange: 891-9340 to 44
Fax: Makati 848-6349
Binondo 241-0178
eastern_securities@yahoo.com
EASTWEST CAPITAL CORPORATION 149
EDILBERTO B. BRAVO
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
2nd Floor Filben Building,
779 J. P. Rizal Street,
Brg. Poblacion, Makati City
Office: 897-6807
Exchange: 891-9801; 891-9803
Fax: 897-6807; 897-6805
eastwest@ubix.com.ph
EIB SECURITIES, INC. 261
(Corporate Trading Participant)
DIONISIO E. CARPIO JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
11/F, ExportBank Plaza
Chino Roces Avenue
cor. Sen. Gil Puyat Avenue,
Makati City
Office: 878-0775; 878-0790;
886-1801 to 04
Exchange: 848-5386; 848-5396
Fax: 886-1806
contact@e-securities.com.ph
EQUITIWORLD SECURITIES, INC. 153
(Corporate Trading Participant)
ANTONIO A. LOPA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5401; 848-5403 to 06
President/GM 848-5418
Exchange: 891-9755 to 58
Fax: 848-5423
eqworld_87@globelines.com.ph
EVERGREEN STOCK 154
BROKERAGE & SECURITIES, INC.
(Corporate Trading Participant)
FRANCISCO S. GAISANO
(Nominee Trading Participant
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9451 to 58
Exchange: 891-9451 to 58
Fax: 891-9459 to 60
F. YAP SECURITIES, INC. 162
(Corporate Trading Participant)
FELIPE U. YAP
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
17/F Lepanto Building,
8747 Paseo de Roxas,
Makati City
Office: 856-7680
Exchange: 634-5171; 634-6917;
634-5390 to 91; 634-6217 to 18
Fax: 813-0865
Annual Report 2009
FIDELITY SECURITIES, INC. 243
(Corporate Trading Participant)
BEN C. TIU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
2/F, JTKC Centre 107
2155 Pasong Tamo, Makati City
The Philippine Stock Exchange, Inc.
Office: 818-6774; 812-6267
Exchange: 634-7110; 633-9707;
633-9710; 633-9711
Fax: 810-3536
FIRST INTEGRATED CAPITAL 159
SECURITIES, INC.
(Corporate Trading Participant)
MANUEL MAÑALAC JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 759-4320 to 23;
891-9418 to 19
Exchange: 759-4320 to 23;
891-9418 to 19
Fax: 759-4326
 FIRST METRO SECURITIES 267
BROKERAGE CORPORATION
(Corporate Trading Participant)
ROBERTO JUANCHITO T. DISPO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
18/F, PS Bank Center,
777 Paseo de Roxas cor. Sedeño St.
Makati City
Office: 859-0600
Exchange: (a.m.) 891-9514 to 17
The Philippine Stock Exchange, Inc.
Fax: 859-0699
firstmetrosec@globelines.com.ph
FIRST ORIENT SECURITIES, INC. 157
(Corporate Trading Participant)
TRINIDAD Y. KALAW
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9240; 891-9243 to 44
108 Exchange: 891-9240 to 45
Fax: 848-6175
Annual Report 2009
fosisec@gmail.com
FRANCISCO ORTIGAS SECURITIES, INC. 161
(Corporate Trading Participant)
FRANCISCO M. ORTIGAS III
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
10th Floor, Ortigas Building,
Ortigas Avenue, Pasig City
Office: 631-2674; 631-2733
Exchange: 634-5149 to 53
Fax: 631-2668
G. D. TAN & COMPANY, INC. 288
(Corporate Trading Participant)
GILBERT TAN
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
22/F, East Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 634-6255; 637-5686
Exchange: 634-6255; 634-5408;
634-6256
Telefax: 637-6256
gdtaninc@yahoo.com
GLOBALINKS SECURITIES & 168
STOCKS, INC.
(Corporate Trading Participant)
DAVID L. WUSON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6341 to 42;
759-4136 to 37
Exchange: 891-9920 to 22
Telefax: 848-6341 to 43;
759-4136 to 37
GOLDEN TOWER SECURITIES 285
& HOLDINGS, INC.
(Corporate Trading Participant)
ANDRES LAO HIAN LIONG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
4/F, Vernida I Condominium
120 Amorsolo Street,
Legaspi Village, Makati City
Office: 813-2839; 892-1316
Exchange: 891-9680 to 82
Fax: 813-0321
GOLDSTAR SECURITIES, INC. 170
(Corporate Trading Participant)
JOSEPH L. MANCILLA JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
22/F, East Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 636-0197;
633-7485 to 86
Exchange: 634-6765 & 69;
634-6983 & 87
Fax: 633-7487
GUILD SECURITIES, INC. 172
(Corporate Trading Participant)
ANTONIO B. ALVAREZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9230; 891-9234 to 35
Exchange: 891-9232 to 37;
891-9230
Fax: 891-9231
guildsec@tri-isys.com
H. E. BENNETT SECURITIES, INC. 175
(Corporate Trading Participant)
JESUS M. DELA PEÑA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Rm. 1704, World Trade Exchange Bldg.,
215 Juan Luna Street, Binondo, Manila
Office: Executive Office 242-5733
Dealing Room
241-6284;241-6458
Exchange: 634-5030; 634-6235
Telefax: 245-6959
hebsi@info.com
HDI SECURITIES, INC. 174
CHIA KIM TECK
(Natural Person Trading Participant)
Nationality: SINGAPOREAN
Trading Floor: AYALA
Contact Information:
Suite 2002, 20th Floor, The Orient Square,
F. Ortigas Ave. (formerly
Emerald Ave.), Ortigas Center,
Pasig City, 1605
Office: 687-7955; 687-7956;
687-7957; 910-6188
Fax: 910-6189
info@hdisecurities.com
I. ACKERMAN & COMPANY, INC. 179
(Corporate Trading Participant)
MA. LUISA C. ACKERMAN
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9070 to 72
Exchange: 891-9070 to 72
Fax: 891-9353
i.ackerman@eudoramail.com
I.B. GIMENEZ SECURITIES, INC. 180
(Corporate Trading Participant)
IGNACIO B. GIMENEZ (NOMINEE)
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
No. 42 3/F New Rosario Ortigas Arcade,
Rosario Ortigas Extn., Pasig City
Office: 628-0000 local 306
Exchange: 634-6260 to 61;
634-6263 to 65; 634-5168
Fax: 642-7299
IGC SECURITIES, INC. 140
(Corporate Trading Participant)
ISMAEL G. CRUZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
10/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9193 to 94
Exchange: 891-9190 to 92
Fax: 891-9194
igcsec@pldtdsl.net
IMPERIAL, DE GUZMAN, 182
ABALOS & CO., INC.
(Corporate Trading Participant)
LEONIDES C. TIOTUICO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Ground Floor, EDSA Central Square
Shaw Boulevard, Mandaluyong City
Office: 633-2686; 634-5717;
631-8651 loc. 145
Exchange: 634-5161 & 66;
634-5739; 634-5710
Fax: 633-4716
imperdga@yahoo.com
INTRA-INVEST SECURITIES, INC. 183
(Corporate Trading Participant)
JOSE MARIA A. DE LEON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
11/F, ACT Tower
135 Sen. Gil Puyat Avenue,
Salcedo Village, Makati City
Office: 813-8293 to 94
Exchange: 891-9206; 891-9208
Fax: 892-1290
INVESTORS SECURITIES, INC. 181
(Corporate Trading Participant)
EDWARD GO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7032 to 33;
891-9441 to 42
Exchange: 891-9441 to 46
Fax: 848-7034
J. M. BARCELON & COMPANY, INC. 188
(Corporate Trading Participant)
AMPARO V. BARCELON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Unit 34 Casa Nueva,
Manga Road, New Manila,
Quezon City
Office: 725-1001; 725-1004
Exchange: 635-0236; 687-6317
Telefax: 411-2196
J. P. MORGAN SECURITIES 185
PHILIPPINES, INC.
(Corporate Trading Participant)
KELLY LIM-BATE
(Nominee Trading Participant)
Nationality: CAYMAN ISLANDS
Trading Floor: TEKTITE
Contact Information:
31/F, Philam Life Tower
8767 Paseo de Roxas, Makati City
Office: General 885-7700;
Sales 885-7801; 757-2101
Exchange: 687-2364; 687-2370
Fax: 885-7058 to 59
JAKA SECURITIES CORPORATION 125
(Corporate Trading Participant)
KATRINA C. PONCE-ENRILE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7122 to 24
Exchange: 848-6413 to 15
Fax: 848-7121
JSG SECURITIES, INC. 169
(Corporate Trading Participant)
JORGE S. GO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
4/F, A & T Building,
244 Escolta Street, Binondo, Manila
Office: 241-0594; 242-9380;
242-9385
Exchange: 637-3159 to 61
Fax: 242-9392
KING’S POWER SECURITIES, INC. 389
CARLOS J. CHING
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Room 1602, Federal Tower
Dasmariñas Street, Binondo, Manila
Office: 242-3048 to 49
Exchange: 848-5605 to 07
Fax: 241-1417
kings389@yahoo.com.ph
LARRGO SECURITIES COMPANY, INC. 193
MARIA PAZ R. LAUREL
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
2/F, Rufino Tower Building
6784 Ayala Avenue, Makati City
Office: 810-1183; 810-1353 to 54
810-1440 & 46
Exchange: 891-9530 to 33
Fax: 817-2486
LITONJUA SECURITIES, INC. 195
(Corporate Trading Participant)
EDUARDO V. LITONJUA JR.
Annual Report 2009
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Room 205 DITZ Building
444 T. M. Kalaw Street, Manila
Office: 521-1951 to 57
Exchange: 634-7178; 634-5713
Fax: 521-7692
109
The Philippine Stock Exchange, Inc.
LOPEZ, LOCSIN, LEDESMA & 197
COMPANY, INC.
(Corporate Trading Participant)
DIONISIO LOPEZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Roofdeck, Urban Building
405 Sen. Gil Puyat Avenue (nr. MRT)
EDSA, Makati City
Office: 895-0624; 895-7310
Exchange: 891-9640 to 41
Fax: 896-0835
LUCKY SECURITIES, INC. 198
(Corporate Trading Participant)
EDDIE T. GOBING
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
19/F, West Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 634-6826; 634-6786;
634-6747 & 60
Exchange: 634-5382 to 83; 634-5411;
634-5707
Fax: 634-6826
 LUY’S SECURITIES COMPANY, INC. 199
ENRIQUE LUY, SR.
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
28/F, LKG Tower
6801 Ayala Avenue, Makati City
Office: 884-1271 to 85
Exchange: 634-5175 to 76;
634-6523 to 24;
634-6850 to 51
Fax: 884-1384
The Philippine Stock Exchange, Inc.
MACQUARIE CAPITAL 121
SECURITIES (PHILIPPINES), INC.
(Corporate Trading Participant)
PAULO C. ROJAS
(Nominee Trading Participant)
Nationality:CAYMAN ISLANDS
Trading Floor: AYALA
Contact Information:
22nd Floor 6750 Ayala Avenue Bldg.,
Ayala Avenue, Makati City
Office: 857-0888; 857-0896;
857-0834
Exchange: Office: 898-2984; 890-7336;
110 Fax: 857-0910; 857-0912
cynthia.severino@asia.ing.com
Annual Report 2009
MANDARIN SECURITIES CORPORATION 200
(Corporate Trading Participant)
CHARLES H. SHIH
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
28/F, LKG Tower
6801 Ayala Avenue, Makati City
Office: 884-1271 to 85
Exchange: 634-6517 to 20
Fax: 884-1384
MARIAN SECURITIES, INC. 201
(Corporate Trading Participant)
RICHARD L. LEE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Universal Family Center Building
2232 Pasong Tamo Extension
Makati City
Office: 819-1134; 750-2440
Exchange: 891-9309; 891-9316
Fax: 819-1130
MDR SECURITIES, INC. 208
(Corporate Trading Participant)
MANUEL D. RECTO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6th Floor, Unit 617AIC-Burgundy
Empire Tower, ADB Avenue corner
Garnet & Sapphire Roads,
Ortigas Center, Pasig City
Office: 706-2131; 706-2169
Exchange: 891-9226 to 28
Mobile: 0922-8814788; 0922-8823137; jameschu@info.com.ph
0922-8823136
MERCANTILE SECURITIES. CORP. 205
(Corporate Trading Participant)
ASTRID MELODY LIM
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
3/F Goodwill Building
393 Sen. Gil Puyat Avenue,
Makati City
890-6792; 890-1939
Exchange: 891-9350 to 58
891-9350; 856-2880
Fax: 895-2376
MERIDIAN SECURITIES, INC. 206
(Corporate Trading Participant)
RONALDO S. SALONGA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
27/F, East Tower – PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 635-6261 to 64
Exchange: 634-6931 to 36
Fax: 634-6937
meridiansec@yahoo.com
MOUNT PEAK SECURITIES, INC. 210
(Corporate Trading Participant)
WILLIAM GAWECO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
748 C. K. Building, Juan Luna St.,
Binondo, Manila
Office: 241-7990 & 92; 241-8043;
243-1953
Exchange: 891-9601 to 03
Fax: 241-8042
Info@mountpeak.com
www.mountpeak.com
NEW WORLD SECURITIES, INC. 211
(Corporate Trading Participant)
JOAN CHAI CHU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Room 202 CNC Investment Bldg.
231 Juan Luna St., Binondo, Manila
Office: 242-1759; 242-1767
Exchange: 634-5711 to 12;
634-5721
Fax: 242-1743
NIEVES SANCHEZ, INC. 213
(Corporate Trading Participant)
TERESITA P. PACHECO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Room 400 CNC Investment Bldg.
231 Juan Luna Street, Binondo,
Manila
Office: 241-7142; 241-6890
Exchange: 891-9306 to 08
Fax: 241-6890
OPTIMUM SECURITIES CORPORATION 215
(Corporate Trading Participant)
EDDIE S. JOSE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
No. 11 E. O. Building
cor. United & 2nd Streets,
Bo. Kapitolyo, Pasig City
Office: 631-7831 to 36; 631-3989;
633-2629
Exchange: 891-9581 to 85
Fax/Telefax: 631-8834 / 633-2629
PAN ASIA SECURITIES CORPORATION 218
(Corporate Trading Participant)
LUCIO K. TAN, JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
9/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5153 to 54
Exchange: 891-9170 to 74
Fax: 848-5154
panasec@edsamail.com.ph
PAPA SECURITIES CORPORATION 219 PHILIPPINE EQUITY PARTNERS, INC. 338
(Corporate Trading Participant) (Corporate Trading Participant)
MYRON TIMOTHY P. PAPA JOSEPH R. MADRID
(Nominee Trading Participant) (Nominee Trading Participant)
Nationality: FILIPINO Nationality: FILIPINO
Trading Floor: AYALA Trading Floor: AYALA
Contact Information: Contact Information:
6/F, S & L Building Unit 19C, Citibank Tower
De la Rosa cor. Esteban Streets, Citibank Plaza
Legaspi Village, Makati City 8741 Paseo de Roxas, Makati City
Office: 817-8433 & 79; 817-8454; Office: 814-5700
815-1308 Exchange: 891-9162; 891-9222;
Exchange: 891-9630 to 32 891-9097
Fax: 815-1308 Fax: 814-5793 to 94
mcpapa@pacific.net.ph
PHIL-PROGRESS SECURITIES CORP. 276
PCCI SECURITIES BROKERS CORP. 282 (Corporate Trading Participant)
(Corporate Trading Participant) FRANCISCA S. MARTIN
FEDERICO C. GALANG (Nominee Trading Participant)
(Nominee Trading Participant) Nationality: FILIPINO
Nationality: FILIPINO Trading Floor: AYALA
Trading Floor: AYALA Contact Information:
Contact Information: G/F, PPL Building, U. N. Avenue
4/F, PCCI Corporate Center cor. San Marcelino Street, Manila
118 L. P. Leviste Street, Office: 526-4207; 526-4208 &10
Salcedo Village, Makati City Exchange: 891-8579 to 80
Office: 893-3920; 893-3923 to 24; Fax: 526-4208
893-4341
Exchange: 891-9952 to 55; PLATINUM SECURITIES, INC. 223
848-6284 to 85; 840-2991 (Corporate Trading Participant)
Fax: 893-4340 WILLIAM O. GO
pcci.sbc@eastern.com.ph (Nominee Trading Participant)
Nationality: FILIPINO
PCIB SECURITIES, INC. 131 Trading Floor: AYALA
(Corporate Trading Participant) Contact Information:
GABRIEL U. LIM 8/F, Antel 2000 Corporate Center
(Nominee Trading Participant) 121 Valero St., Salcedo Vill., Makati
Nationality: FILIPINO Office: 887-1178 to 79
Trading Floor: AYALA Exchange: 891-9301 to 03
Contact Information: Telefax: 887-1178
20/F, Equitable PCI Tower I
Makati Ave. cor. H.V. dela Costa St., Makati City PNB SECURITIES, INC. 224
Office: Dealing Room 878-4556; (Corporate Trading Participant)
878-4558; 878-4562 to 63 OMAR BYRON T. MIER
Operations 878-4559 to 60 (Nominee Trading Participant)
Compliance 878-4564 Nationality: FILIPINO
Exchange: 891-9008 to 09; 891-9045 Trading Floor: AYALA
Fax: 840-7175 Contact Information:
nilo.sampayo@equitablepcib.com 3/F, PNB Financial Center
carol.santana@equitablepcib.com Roxas Boulevard, Pasay City
Office: 526-3510; 526-3678;
832-5461 / Dealing 526-3478
Exchange: 891-9841; 891-9846;
891-9849
Fax: 526-3477
PREMIUM SECURITIES, INC. 225
ANTONIO Y. TEE
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
14/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5915 to 17
Exchange: 891-9593 to 95
Telefax: 848-5917
PUBLIC SECURITIES CORPORATION 229
(Corporate Trading Participant)
JIMMY T. YAOKASIN, JR.
(Nominee Trading Participant)
FILIPINO
Trading Floor: AYALA
Contact Information:
Executive Office:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Backroom Office:
11/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7373 to 74;
811-4706; 811-4526
Exchange: 891-9490 to 93
Fax: 811-4706
psc@i-manila.com.ph
QUALITY INVESTMENT & 230
SECURITIES CORP.
(Corporate Trading Participant)
BENJAMIN Y. CU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Annual Report 2009
Unit 1602 Tytana Plaza
Plaza Lorenzo Ruiz, Binondo,
Manila
Office: 241-0072; 241-0486;
241-0547
Exchange: 891-9184 to 89
Fax: 241-0166
qualsec@pldtdsl.net
111
R & L INVESTMENTS, INC. 231
The Philippine Stock Exchange, Inc.
(Corporate Trading Participant)
RENE R. LEE
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
675 Lee Street, Mandaluyong City
Office: 724-5207
Exchange: 891-9201 to 05
Fax: 724-7210
R. COYIUTO SECURITIES, INC. 233
(Corporate Trading Participant)
ROBERT COYIUTO JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
5/F, Corinthian Plaza,
Paseo de Roxas, Legaspi Village,
Makati City
Office: 811-3064 to 67; 811-3201
Exchange: 634-6203 to 07;
634-5035; 634-6697 & 69
Fax: 811-3073
rcoyiutosec@hotmail.com
 R. NUBLA SECURITIES, INC. 236
RALPH NUBLA JR.
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Room 300, CNC Investment Bldg.
231 Juan Luna Street,
Binondo, Manila
Office: 242-1595 to 96; 242-1770
Exchange: 634-6525 to 29
Fax: 242-1666
The Philippine Stock Exchange, Inc.
S. J. ROXAS & COMPANY, INC. 240
(Corporate Trading Participant)
SIMPLICIO J. ROXAS
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5065 to 69
Exchange: 891-9708 to 09;
891-9714 to
SINCERE SECURITIES CORPORATION 129
(Corporate Trading Participant)
JOHN KENNETH L. OCAMPO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
12/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 638-3549 to 50
Exchange: 634-6664; 634-6668
Fax: 638-3549

R. S. LIM & COMPANY, INC. 238 16; 891-9439

(Corporate Trading Participant)
ALEJANDRO T. YU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
1509 Galvani Street, Makati City
Office: 843-4313; 844-7235;
844-2245
Exchange: 891-9660 to 66
Fax: 844-2245
rslim@i-manila.com.ph
112 RCBC SECURITIES, INC. 217
(Corporate Trading Participant)
Annual Report 2009
Fax: 891-9447 SOLAR SECURITIES, INC. 286
sjroxas@ymail.com (Corporate Trading Participant)
JOHNNY S. YAP
SARANGANI SECURITIES, INC. 113 (Nominee Trading Participant)
(Corporate Trading Participant) Nationality: FILIPINO
ARTHUR W. ANTONINO Trading Floor: TEKTITE
(Nominee Trading Participant) Contact Information:
Nationality: FILIPINO 30/F, East Tower – PSE Centre
Trading Floor: AYALA Exchange Road, Ortigas Center
Contact Information: Pasig City
Unit 2 D1 Vernida I Condominium, Office: Trunk line 636-6302
120 Amorsolo Street, Legaspi Village, Direct lines 634-6651;
Makati City 634-6653
Office: 817-5806; 840-4504; Exchange: 636-6302; 634-6869;
817-5834 634-6878

RAUL M. LEOPANDO Exchange: 891-9176 to 79 Fax: 635-2466

(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
7/F Yuchengco Tower, RCBC Plaza
6819 Ayala Avenue, Makati City
Office: Trunk line 889-6931 to 35
Exchange: 845-2641
Fax: 889-7642
sales@rcbcsec.com
www.rcbcsec.com
REGINA CAPITAL DEVELOPMENT CORP. 235
MARITA A. LIMLINGAN
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5482 to 84
Exchange: 891-9413;
891-9415 to 17
Fax: 848-5482 to 84
rcdc@reginacapital.com
RTG & COMPANY, INC. 239
(Corporate Trading Participant)
RAMON T. GARCIA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9480 to 84
Exchange: 891-9480 to 84
Fax: 891-9483
Fax: 817-5815 solar_sec_inc@yahoo.com
sarangani95@yahoo.com
STANDARD SECURITIES CORPORATION 247
SB EQUITIES, INC. 115 DOMINGO HERRERA
(Corporate Trading Participant) (Natural Person Trading Participant)
REMY TIGULO Nationality: FILIPINO
(Nominee Trading Participant) Trading Floor: AYALA
Nationality: FILIPINO Contact Information:
Trading Floor: AYALA 34 Jefferson Street,
Contact Information: West Greenhills, San Juan, M. Mla.
18/F, Security Bank Centre Office: 725-3905; 721-5887
6776 Ayala Avenue, Makati City Exchange: 891-9760 to 61;
Office: President 891-1092 891-9764 to 65
Manager 891-1116 Fax: 721-5887
Dealing 891-1243/57/58/78
Accounting 813-3441 STRATEGIC EQUITIES CORPORATION 192
Settlement 891-1031 or 37 (Corporate Trading Participant)
Dealing 891-1021 ROBERTO Z. LORAYES
Exchange: 891-9677; (Nominee Trading Participant)
891-9686 to 87 Nationality: FILIPINO
Fax: 813-3349 Trading Floor: AYALA
SBEquities@securitybank.com.ph Contact Information:
6/F, Tower One & Exchange Plaza
SECURITIES SPECIALISTS, INC. 242 Ayala Avenue cor. Paseo de Roxas,
(Corporate Trading Participant) Makati City
FRANCISCO V. CANCIO Office: 848-5159
(Nominee Trading Participant) Exchange: 891-9620 to 21
Nationality: FILIPINO Fax: 848-5164
Trading Floor: AYALA sec@pldtdsl.net
Contact Information:
Rm. 903 National Life Insurance Bldg., Ayala
Avenue, Makati City
Office: 812-5905
Exchange: 891-9701 to 03
Fax: 813-1682
securities.specialists@gmail.com
SUMMIT SECURITIES, INC. 246
(Corporate Trading Participant)
HARRY G. LIU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
21/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 631-1032 to 37
Exchange: 631-1032 to 37
Fax: 631-1033
SUPREME STOCKBROKER, INC. 249
(Corporate Trading Participant)
EDUARDO C. ARROYO JR.
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
10/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9405 to 07
Exchange: 891-9401; 891-9403
Fax: 891-9405
TANSENGCO & COMPANY, INC. 251
(Corporate Trading Participant)
FRANCISCO O. TANSENGCO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Room 2308 World Trade Exchange Bldg.
215 Juan Luna Street Binondo, Manila
Office: 241-7155
Exchange: 634-6675 & 85;
633-1310; 634-8230
Fax: 241-7155
THE FIRST RESOURCES 252
MANAGEMENT & SECURITIES
CORPORATION
MA. VIVIAN YUCHENGCO
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Status: ACTIVE
Contact Information:
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6311 to 18
Exchange: 848-6311 to 18
Fax: 848-6272
1stres@philwebinc.com
TOWER SECURITIES, INC. 253
(Corporate Trading Participant)
RAYMOND PETER L. UNLAY
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
18/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 635-4448 to 49;
635-4144; 634-6726
Exchange: 634-5146; 634-5148;
638-3847; 638-3850;
633-9411
Fax: 635-4145
tower_sec@yahoo.com
TRANS-ASIA SECURITIES, INC. 254
(Corporate Trading Participant)
EUGENE ONG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
Room 601-S State Centre Building
333 Juan Luna Street,
Binondo, Manila
Office: 242-2823; 242-3031;
242-1031
Exchange: 634-5725 to 27;
634-5752 to 54
Fax: 242-3031
TRI-STATE SECURITIES, INC. 257
(Corporate Trading Participant)
GREGORIO T. CHAN
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
10/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5044 to 47
Exchange: 891-9361 to 64
Fax: 848-5047
TRITON SECURITIES CORPORATION 136
(Corporate Trading Participant)
EDWIN L. LUY
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
26/F, LKG Tower
6801 Ayala Avenue, Makati City
Office: 884-2081 to 83
Exchange: 635-5531 to 35
Fax: 884-2088
TSC136@yahoo.com
UBS SECURITIES PHILIPPINES INC. 333
(Corporate Trading Participant)
ROBRINA L. GO
(Nominee Trading Participant)
Nationality: SWISS
Trading Floor: AYALA
Contact Information:
19/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas, Makati City
Office: Trunk Line 784-8888
Sales 784-8864
Operations 784-8813
Compliance 784-8807
Exchange: 891-8588; 891-8589
Fax: General 784-8899
Equities 848-2382
Logistics 784-8810
Robby.Go@ubs.com
Tet.Achacon-Espallardo@ubs.com
UCPB SECURITIES, INC. 259
(Corporate Trading Participant)
No Nominee Trading Participant
as of March 31, 2010
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
5/F, UCPB Building
Makati Avenue, Makati City
Annual Report 2009
Office: 811-9000
Office of the President loc. 9545
Compliance Officer loc. 9793
Securities Settlement loc. 9972
Accounting loc. 9970 & 9973
Exchange: 891-9735 to 37
Fax: 811-9792
jtdimero@ucpb.com – Compliance
hbbongon@ucpb.com – Accounting 113
The Philippine Stock Exchange, Inc.
UNICAPITAL SECURITIES, INC. 345
(Corporate Trading Participant)
LEONARDO R. ARGUELLES
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
4/F, Majalco Building
Trasierra cor. Benavidez Streets,
Legaspi Village, Makati City
Office: Dealing/Sales 812-2589
Operations/Dealing/Sales
892-0991
Exchange: 891-9622; 891-9624
Fax: 818-2127
mail@unicapsec.com
UOB-KAY HIAN SECURITIES 260
(PHILIPPINES), INC.
(Corporate Trading Participant)
TAN CHEK TECK
(Nominee Trading Participant)
Nationality: SINGAPOREAN
Trading Floor: AYALA
Contact Information:
Unit 404 Locsin Building
Ayala cor. Makati Avenue, Makati City
Office: 887-7972
Exchange: 891-9526 to 27
Fax: 887-7973
milasanjose@uobkayhian.com
 UPCC SECURITIES CORPORATION 100
(Corporate Trading Participant)
WILLIAM C. UY
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
12/F Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office & Exchange: 891-8512;
891-8514; 891-8519
Fax: 892-0215
The Philippine Stock Exchange, Inc.
VSEC.COM, INC. 135
(Corporate Trading Participant)
SENEN L. MATOTO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Unit 1009-1011, Tower One & Exchange Plaza,
Ayala Triangle, Ayala Avenue,
Makati City
Office: 856-5801 to 03
Exchange: Exchange: 634-6284; 634-6286;
Fax: 856-3922
YAO & ZIALCITA, INC. 275
CARMELITA C. YAO
(Natural Person Trading Participant)
Nationality: AMERICAN
Trading Floor: TEKTITE
Contact Information:
5H Vernida I Condominium
120 Amorsolo Street,
Legaspi Village, Makati City
Office: 813-3496; 892-5936;
894-0553 to 55
634-6946

upcc_mla@i-manila.com vseconline Fax: 813-3496; 818-6739

VALUE QUEST SECURITIES 190
CORPORATION
(Corporate Trading Participant)
GLENN PAUL R. GARCIA
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
1007B West Tower, PSE Centre,
Exchange Road, Ortigas Center,
Pasig City
114 Office: 636-6684; 636-6686
Fax: 687-0584
Annual Report 2009
WEALTH SECURITIES, INC. 269
(Corporate Trading Participant)
HOSANNA T. AYSON
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
21/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 634-5038 to 42;
637-3048 to 50
Exchange: 634-6222; 634-6225 to 29
Fax: 634-5043
yaozial@boostunlimited.net
YU & COMPANY, INC. 278
(Corporate Trading Participant)
JOHNNY YU
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Contact Information:
16/F, East Tower – PSE Centre
Exchange Road, Ortigas Center
Pasig City
Office: 634-6611 & 18; 634-7577
Exchange: 634-6248 to 50
Fax: 634-5918

valuequestsecurities@gmail.com info@wealthsecuritiesinc.com yunc@sfi.com.ph

VENTURE SECURITIES, INC. 263 WESTLINK GLOBAL EQUITIES, INC. 270

EUSEBIO TANCO
(Natural Person Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
7th Floor, Phil. First Building
6764 Ayala Avenue, Makati City
Office: 848-6505; 887-8447
Local nos. 7011/7012/7016
Exchange: 891-9420 to 22
Telefax: 848-6503
VICSAL SECURITIES & STOCK 266
BROKERAGE, INC.
(Corporate Trading Participant)
FRANK SY GAISANO
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
Unit 1009-1011, Tower One & Exchange Plaza,
Ayala Triangle, Ayala Avenue,
Makati City
Office: 856-3923
Exchange: 891-9710 to 13
Fax: 856-3922
Vssb_sec2005@yahoo.com.
(Corporate Trading Participant)
RAFAEL O. MUÑOZ
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: AYALA
Contact Information:
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6231; 848-6246
Exchange: 891-9380 to 83
Fax: 848-6229
wgei@tri-isys.com -President
wgeirsc@tri-isys.com -Research/Marketing
wgei_operation@tri-isys.com -Operations
WONG SECURITIES CORPORATION 273
(Corporate Trading Participant)
EDEN WONG
(Nominee Trading Participant)
Nationality: FILIPINO
Trading Floor: TEKTITE
Status: ACTIVE
Contact Information:
960 Ideal Street, Mandaluyong City
Office: 727-6317
Exchange: 634-5735 to 36
Telefax: 718-0887
wongsecuritiesonline@yahoo.com
Corporate
Information

Annual Meeting
The annual meeting of shareholders will
be held on Saturday, 1 May 2010, 8:00 a.m.
at the PSE Centre, Exchange Road, Ortigas
Center, Pasig City.

Corporate
Offices
Principal Office:
Philippine Stock Exchange Centre External Counsels
Exchange Road, Ortigas Centre, Pasig City
1605 Philippines Angara Abello Concepcion
Tel. No.: (632) 688-7600 Regala & Cruz Law Offices
Fax No.: (632) 634-5113 22nd floor, ACCRALAW Tower
Second Avenue corner 30th street
Crescent Park West
Bonifacio Global City, 0399 Taguig
Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
1226 Philippines D.P. Arce Law Office
Tel. No.: (632) 819-4100 Unit 612, 6/F, Tower 1, Cityland Condominium 10
Fax No.: (632) 891-9004 6815 Ayala Avenue, Makati City
Website: www.pse.com.ph
Quasha Ancheta Peña & Nolasco

photography: Erik Liongoren + TanQ

Don Pablo Building,114 Amorsolo Street
1229 Makati City
External Auditor
Rodrigo Berenguer & Guno SyCip Gorres Velayo & Co.
4th Floor, Phil. First Building 6760 Ayala Avenue
6764 Ayala Avenue, Makati City 1226 Makati City
Philippines
Tan Venturanza Valdez
2704 East Tower,
Philippine Stock Exchange Centre
Exchange Road, Ortigas Center, Pasig City
Stock Transfer Agent
Zamora Poblador Vasquez & Bretaña Rizal Commercial Banking Corp.

design agency: TanQ | www.tanqmedia.com

Law Offices Stock Transfer Department
5th Floor, Montepino Building G/F West Wing, 211 Grepalife Building
138 Amorsolo St., Legaspi Village, Makati City Sen. Gil Puyat Ave., Makati City

For inquiries, please contact:

Public and Investor Relations Section
Tel. No.: (632) 688-7600
E-mail : pirs@pse.com.ph

Disclaimer:
This Annual Report may contain forward-looking statements which reflect the PSE management’s plans, intentions,
points of view, and assumptions on events that might directly and indirectly pose risks and uncertainties to its
objectives and operations as an Exchange. No information expressed herein should be reproduced, copied or made
available to others without a written permission from The Philippine Stock Exchange, Inc. The PSE assumes no
obligation to update any forward-looking information in this Annual Report.

All rights reserved 2010.

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