The Philippine Stock Exchange first appeared in 1993, but its history runs much longer. The exchange was a merger of the Manila Stock Exchange and the Makati Stock Exchange, which created a single exchange in the Philippines. The merger also served as a symbol to a country that had seen its share of political divisions that the nation could act in a singular direction.
Manila Stock Exchange
The Manila Stock Exchange was founded on Aug. 8, 1927, by five U.S. businessmen. It was in the Insular Life Building on Plaza Cervantes, Binondo. Founders W.P.G. Elliot, W. Eric Little, Gordon W. Mackay, John J. Russell and Frank W. Wakefield said that they wanted a stock exchange that would serve the public, practice ethical standards and uphold good business practices. They also claimed that trading in stocks would stimulate the Philippine economy. The Manila Stock Exchange moved to Pasig in 1992.
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Makati Stock Exchange
The younger Makati Stock Exchange was founded on May 27, 1963. It, too, had five founding members: Miguel Campos, Bernard Gaberman, Aristeo Lat, Eduardo Ortigas and Hermenegildo B. Reyes. Because the Philippines already had an operating stock exchange, there was opposition to a second one.
The exchange, which was in the Insular Life Building in Makati, did not begin operating until Nov. 16, 1965. In 1971, it moved to its own building on Ayala Avenue in Makati.
Stock Exchange Competition
Though the Philippines had two stock exchanges, they both traded the same stocks. They were duplicating efforts, but they had different policies, different members and different stock prices. It soon became evident that the country needed only a single stock exchange in order to simplify things and create added stability.
Stock Exchange Unification
Philippine President Fidel Ramos led the massive effort to unite the two stock exchanges as one. The Philippine Stock Exchange was founded on July 14, 1992, and by Dec. 23, both the Makati and the Manila exchanges agreed to become part of it.
Philippine Stock Exchange Founded
According to the Philippine Stock Exchange website, the first board of governors for the Philippine Stock Exchange was elected on March 20, 1993. They were the president of the exchange and 14 member brokers. Eduardo de los Angelos was the first president of the Philippine Stock Exchange. The first Philippine stock exchange chairman of the board was Eduardo C. Lim. Just short of a year later, the Securities and Exchange Commission granted the stock exchange its license to operate as a securities exchange. The licenses for the Manila and Makati exchanges were canceled at the same time.
Barron's reports that the Philippine Stock Exchange is located at the impressive Philippine Stock Exchange Tower in Taguig, Philippines. The Philippine Stock Exchange has made great improvements in its commendable goal to become a premier stock exchange. It became a member of the Association of National Numbering Agencies in 1995. In 1998, the Securities and Exchange Commission made the Philippine Stock Exchange a self-regulatory organization, which allows it to create its own rules and impose penalties on members.