Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Yes.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	No.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	A user group was formed in 2000. Members of the group are representatives from various sectors of the PCD participant-base. This group meets on a bi-monthly basis or as often as necessary. The group aims to: a) serve as a sounding board for PCD plans and projects; b) provide PCD with regular feedback and concerns from the various sectors; c) facilitate information dissemination within the equities market community. d) act as change agent to coordinate market participant initiatives (such as from sub-custodians) affecting the PCD.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	PCD communicates regularly to its stakeholders through Faxbrief, online message systems NotesQ and MESSEND, website: www.pcd.com.ph and PCD helpdesk. Stakeholders and participants can direct their communications through PCD's helpdesk, PCD website, email and MESSEND.