Saturday, July 13, 2024

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Short-selling transactions to take effect immediately — PSE  


The PSE announced that the regulations for short-selling transactions will be in effect once approved by government regulators.

On Monday, the stock exchange operator announced that regulators have approved the necessary aspects of securities borrowing and lending (SBL). Short selling can only occur once an SBL rule is established.

The PSE President and CEO, Ramon S. Monzon, expressed gratitude to the SEC and BIR for their approval of critical regulatory elements related to SBL and short selling. This progress brings us closer to fully adopting and implementing these highly anticipated programs.

The PSE announced that they will release a separate statement regarding the official start date for the short-selling program.

Making a profit by predicting a decrease in a stock’s value is known as short selling. This practice is allowed in nations like Singapore, Hong Kong, Malaysia, Thailand, and Indonesia in Asia.

The PSE announced in May that the SEC has approved the use of offshore collateral for SBL. In September, the BIR accepted the filing and registration of the Global Master Securities Lending Agreement.

The PSE has now added the PSE MidCap and PSE Dividend Yield indices’ members as acceptable securities for short-selling, according to their guidelines.

Before, only stocks in the PSE index and exchange-traded funds were considered suitable for short selling.

Last month, the SEC announced that it will synchronize the short-selling regulations in the country with other Asian markets in order to enhance the performance of the domestic stock market.

“We aim to synchronize the short-selling landscape with the leading Asian markets, as this has the capability to boost liquidity, steady the market, safeguard investors, and enhance the value of shares for Philippine companies,” stated SEC Chairperson Emilio B. Aquino in a previous announcement.