April 20, 2019
THE Philippine Stock Exchange (PSE) remains on track to formally introduce short-selling within the year.
In a chance interview with The Manila Times, PSE President Ramon Monzon said the bourse was only waiting for a Securities and Exchange Commission (SEC) approval before it launches the initiative.
“We are just waiting for the approval of the SEC of the application of PDTC (Philippine Depositary and Trust Corp.) to be the central lending unit for equities,” Monzon said.
The bourse originally planned to launch short-selling late last year but deferred it to the first quarter of 2019.
Proposed rules that included provisions on eligible securities and transaction procedures, among others, were approved by the SEC in July 2018 but the PSE released amended guidelines in January 2019, primarily on the prohibition of short-selling orders during the stock market’s pre-open and pre-close.
Short selling will allow investors to hedge risks by borrowing shares from a lender and sell these, betting on a price drop to make profits. It is expected to inject more liquidity into the market.
Credit belongs to : www.manilatimes.net