N2N Connect inks Manila bourse deal

• Local MSC-status application service provider seals deal with the Philippine Stock Exchange (PSE) 
• System allows traders to be efficient; PSE improves its risk management capabilities, among other benefits

N2N Connect has entered into an agreement with the Philippine Stock Exchange (PSE) that will see the former provide exchange-wide online trading, direct market access and advanced trading tools to the PSE's trading participants, including stock brokerages and their clients.

The services offered include automated order taking and algorithmic trading, the company said in a statement. Also an MSC-Malaysia status company, N2N Connect is an applications service provider for the e- and m-commerce segments of the financial industry. An MSC-status company enjoys, among other benefits, tax breaks and the ability to hire foreign knowledge workers without any restrictions. 

“Our solutions provide the PSE with a unified platform to connect more effectively with its trading participants (TPs) and include the added advantage of having opportunities to connect with overseas exchanges," said Andrew Tiang, managing director of N2N Connect. "The PSE can improve its risk management [capabilities] and that of its TPs, who will also have access to these advanced tools," he said, adding that all of these features are aimed at giving clients added advantages in securities trading. 

Under the terms of the latest agreement, N2N Connect will provide software solutions that allow the PSE to offer online trading for its TPs’ clients who wish to execute and monitor orders on their own.

The new platform that promotes the direct market access (DMA) gateway would also provide trading terminals, automated order taking facility and algorithm trading for dealers, traders, and TPs’ more sophisticated clients, the company said.

With the new agreement, the PSE and its TPs will be able to enjoy cost savings, better staff and operational efficiency and reduce capital expenditure through N2N Connect's cloud-based, pay-per-use model. N2N Connect has operations in Singapore, Malaysia, Saudi Arabia, Kuwait, Vietnam, Hong Kong and Indonesia.

N2N Connect said that while it has previously secured contracts to implement securities trading solutions for Malaysian as well as regional securities companies, the PSE deal is the first it has scored directly with an Asean stock exchange. 

The company also revealed that it has completed or is engaged in implementing DMA for 13 Malaysian stockbroking houses ahead of a September 30 deadline set by Bursa Malaysia.