Philippine Stock Exchange, Bonifacio Global City. INQUIRER PHOTO/LYN RILLON
The Philippine Stock Exchange (PSE) is eagerly anticipating the official launch date for short selling following the approval of critical securities and borrowing lending (SBL). Short selling is a strategy that allows investors to profit from a decline in share prices instead of relying solely on price appreciation. While it is a common practice in many other jurisdictions, the domestic short selling regime in the Philippines has been delayed due to lengthy approval processes for its rules.
In a statement released on Monday, the PSE announced that the guidelines for short selling have taken effect immediately after regulators gave their approval for the “critical components of securities borrowing and lending.”
“Short selling can only function if an SBL program is in place,” stated the PSE.
The exchange further stated, “The PSE will make a separate announcement on the official launch date of the short selling program.”
Regulatory Approval
The Securities and Exchange Commission (SEC) approved offshore collateral for SBL in May 2023, while the Bureau of Internal Revenue (BIR) accepted the filing and registration of the Global Master Securities Lending Agreement in September of this year. The BIR’s approval was a key requirement before short selling could be implemented.
“[There will be] at least more products in the market. Hopefully, it will help boost volumes,” commented COL Financial Group chief equity strategist April Lynn Tan.
PSE President Ramon Monzon expressed gratitude to the SEC and BIR for their approvals on the rules for SBL and short selling. He stated, “This development brings us a step closer to the full adoption and implementation of these much-awaited programs.”
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
