1. What is the Direct Registry project?
Philippine Association of Stock Transfer Agents (PASTRA) aims to integrate
the data sources of its members to provide:
Trade verification ability to PSE
Electronic, direct registration of trade in investor's name
Unified shareholders information
Click here to see the EDR Diagram
2. Is EDR consistent with global trends in capitals markets?
Global investors are moving towards 24hrs x 7 days/week operating
Global investors demand lower operating risks in the markets
they operate in.
Global investors need more accurate, timely and complete information.
Global investors desire G-30 compliant markets (i.e. true DVP,
scripless, name on registry)
Regional equity markets will emerge and follow the same trend
that characterized banking as it went global. already, we see this
in Singapore and Malayasia.
3. What is Straight Through Processing (STP)?
Through Processing is a concept of accelerating the flow of cross-border
trade information that will make T+1 feasible. This facilitates automation
at all levels of the industry. In other words, it is an electronic
platform from inception of trade settlement.
4. How can the shareholders information be unified?
shareholders information will be unified across the different STA's
registries through the use of a powerful data integration tool called
5. What is a ACE?
DB® is a centralized, high-performance, scalable solution for
data transformation. It is the next generation data integration tool
for companies that need to bring together their data sources in complex
heterogenous environments. This is the tool taht will be used to link
the 40 STAs' data sources.
6. Will the STAs need a new system?
ACE works with the existing data sources in complex heterogeneous
environments and brings these together to come up with a virtually
7. Who is CDVI?
Data Vision, Inc. (CDVI) is a software developer systems integrator
focusing on the financial services sector. CDVI has over twelve years
of experience and high-level competency in core banking systems, Electronic
Funds Transfer (EFT), secure financial transaction management, back-end,
and data communications.
Is PASTRA establishing a separate legal entity for investors and brokers
to deal with?
at all. On the contraty, the PASTRA has engaged Secure Trade to provide
systems integration services so that participants in the stock market
can directly and electronically deal with relevant transfer agent
as they are unified through EDR.
What is PASTRA's goal in this project?
goals is to increase the volume of transactions and attract more investors
by making their system more efficient and less risky as the movement
of trades are made transparent.
Why does PASTRA say that the EDR will assist in the PSE's risk management
key control principle that EDR follows is providing the investor a
totally indepentdent means of verifying the proper and timely execution
of his instructions. For example, an investor who has a buy order
executed and requests name registration can only truly "close"
the transaction only after he has actually received the physical certificate
in his name. Under present conditions, that can take anywhere from
20 to 40 days.
With EDR, the investor can do an independent query electronically
and see if his name and holdings appears in the TA's books at T+4.
Why does PASTRA say that this facility will lead to a totally scripless
environment for the stock market?
EDR is intended to encourage investors to surrentder and immobilize
their certificates with the transfer agent directly. The investor
will be albe to review his holdings as recorded in the books of the
PASTRA believes the paradigm switch is similar to that which occurred
as ATM's became prevalent and a preferred method of account maintenance.
As people have grown comfortable to accessing their account as evidence
of their deposti holdings has been substantially reduced.
At the same time, certain institutional investors, such as trust accounts
managed by banks and insurance companies, have legal requirements
to show direct and uncontested ownership of assets they have purchased.
This applies to the financial instruments.
Philippine government securities today is totally scripless and enjoys
the full participation of investors. Philippine government securities
are directly registered in the nmae of the investor, thus giving the
investor confidence in his/her holdings.
Now will EDR broaden participation in the stock market?
going scripless, geography plays no factor. This is different
from today's market wherein investors trading with name certificates
need to be close due to the fact that transactions have to be cleared
within T+4. Under such system, participation is largely limited to
investors operating within a 30 km radius of the PSE.
At the same time, providing investors the ability to query their holdings
which are registered in their name, should increase investors confidence.
Under the EDR, will a broker's guarantee on the security still be
will waive the need for guarantees in transactions involving securities
that were enrolled and registered into the EDR and whose corresponding
physical certificate has been surrendered to and immobilized with
the transfer agent.
This is possible because no reconciliation or verification is necessary.
There is already a one-to-one correspondence between the details on
the transfer book and the surrendering and immobilization of the physical
vertificate at the transfer agent.
What are the benefits for the investor/stockholder?
Investors will have an uncontested claim or proof of ownership over
the securities they purchased.
Investors will receive direct confirmation of stocks they purchased
Investors will have a clear check and balance of transactions processed.
What are the benefits for the brokers?
Brokers no longer need to issue a broker's guarantee on the certificates.
When a stockholder decides to sell his certificates, he surrenders
them tot he STA who guarantees them
Brokers will be able to verify, through a yes/no query, if
a stockholder has sufficient numbers of shares to sell
Less cost compared to the present
What are the benefits for the issuers?
Electronic registry can easily attract investors nationwide and globally
Movement of stocks can be easily monitored
Beneficial owners of stocks can be identified directly, thus
allowing faster communication with investors
More effiecient flow of information and financial benefits
from company to stockholders
Is participation mandatory?
is not mandatory. Investors can still opt to have their shares in
street name or keep certificates.
Will it still be possible to keep physical certificates?
certificates can still be issued upon the discretion of the stockholder
Can there still be lending and borrowing of stocks?
as long at this function is still in operation. The business rules
to be executed by the system will be determined by the SEC/PSE.