Philippine Stock Exchange confirms short selling guidelines
06 October 2023 Philippines
Image: fazon/stock.adobe.com
The Philippine Stock Exchange (PSE) has confirmed its guidelines on short selling transactions are to be effective immediately following regulatory approval.
The approval is in regards to critical components of securities borrowing and lending — short selling can only function if a securities borrowing and lending programme is in place.
In September, the Bureau of Internal Revenue (BIR) accepted the filing and registration of the Global Master Securities Lending Agreement (GMSLA).
In May 2023, the U.S. Securities and Exchange Commission (SEC) approved PSE’s proposal to offshore collateral for securities borrowing and lending.
The exchange has also updated the eligible securities in its short selling guidelines to include members of the PSE MidCap and PSE Dividend Yield indices.
Initially, only securities comprising the PSE index and exchange-traded funds (ETFs) were considered eligible securities for short selling.
PSE president and CEO Ramon S. Monzon comments: “We are grateful to the SEC and BIR for their approvals on important regulatory aspects of securities borrowing and lending and short selling.
“This development brings us a step closer to the full adoption and implementation of these much-awaited programmes.”
The PSE will make a separate announcement on the official launch date of the short selling programme.
The approval is in regards to critical components of securities borrowing and lending — short selling can only function if a securities borrowing and lending programme is in place.
In September, the Bureau of Internal Revenue (BIR) accepted the filing and registration of the Global Master Securities Lending Agreement (GMSLA).
In May 2023, the U.S. Securities and Exchange Commission (SEC) approved PSE’s proposal to offshore collateral for securities borrowing and lending.
The exchange has also updated the eligible securities in its short selling guidelines to include members of the PSE MidCap and PSE Dividend Yield indices.
Initially, only securities comprising the PSE index and exchange-traded funds (ETFs) were considered eligible securities for short selling.
PSE president and CEO Ramon S. Monzon comments: “We are grateful to the SEC and BIR for their approvals on important regulatory aspects of securities borrowing and lending and short selling.
“This development brings us a step closer to the full adoption and implementation of these much-awaited programmes.”
The PSE will make a separate announcement on the official launch date of the short selling programme.
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