Philippine Stock Exchange gives green light to short selling
25 June 2018 Philippines
Image: Shutterstock
The Philippine Stock Exchange (PSE) has secured the approval of the local Securities and Exchange Commission (SEC) to introduce short selling in the stock market.
PSE president and CEO Ramon Monzon, said: "We are grateful to the SEC for approving the guidelines for short selling. We are optimistic that this facility will lend support to our securities borrowing and lending programme and help improve liquidity in our market."
Monzon added: "Once we launch short selling, investors will be able to employ this tool to help them hedge their portfolio risk.”
The PSE issued a set of guidelines for short selling transactions on 22 June. These were approved by the SEC in its meeting on 5 June.
CEO Monzon said: "Since this is the first time we are introducing short selling, our guidelines were crafted with the goal of ensuring that short selling transactions are transparent and effectively monitored.”
“Even with a limited number of eligible securities and a cap on short interest to begin with, we believe that the ability to take short positions will further spur trading activity and attract more investors to our market."
The PSE said it has outlined activities for various stakeholders in the coming weeks to apprise them of the rules and guidelines for short selling transactions.
The PSE said the guidelines will supplement Article IV, Section 5 of its Revised Trading Rules of the exchange. They set out, among others, details of the eligible securities for short selling, the threshold for short interest ratio, duties and responsibilities of TPs, who engage in short selling and securities borrowing and lending (SBL) procedures for short selling.
You can view the full guidelines here.
PSE president and CEO Ramon Monzon, said: "We are grateful to the SEC for approving the guidelines for short selling. We are optimistic that this facility will lend support to our securities borrowing and lending programme and help improve liquidity in our market."
Monzon added: "Once we launch short selling, investors will be able to employ this tool to help them hedge their portfolio risk.”
The PSE issued a set of guidelines for short selling transactions on 22 June. These were approved by the SEC in its meeting on 5 June.
CEO Monzon said: "Since this is the first time we are introducing short selling, our guidelines were crafted with the goal of ensuring that short selling transactions are transparent and effectively monitored.”
“Even with a limited number of eligible securities and a cap on short interest to begin with, we believe that the ability to take short positions will further spur trading activity and attract more investors to our market."
The PSE said it has outlined activities for various stakeholders in the coming weeks to apprise them of the rules and guidelines for short selling transactions.
The PSE said the guidelines will supplement Article IV, Section 5 of its Revised Trading Rules of the exchange. They set out, among others, details of the eligible securities for short selling, the threshold for short interest ratio, duties and responsibilities of TPs, who engage in short selling and securities borrowing and lending (SBL) procedures for short selling.
You can view the full guidelines here.
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