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THE
Philippine Stock Exchange (PSE) will participate in a
trading linkage project among bourses within the
Southeast Asian region.
The
move, said PSE president Francis Lim, has been approved
by the bourse’s board of directors.
The
Asean (Association of Southeast Asian Nations) stock
exchange linkage is primarily a technology link that
will allow investors from other countries in the region
to buy or sell Asean-listed securities through their
local brokers.
“We
anticipate with much enthusiasm to finally forge a
tie-up for the Asean exchanges linkage. Not only will
the project mean a more meaningful partnership with our
counterparts but it will also lay the foundation for an
integrated and stronger Asean stock market,” said Lim.
The PSE
said the urgency of developing linkages among Asean
exchanges arises mainly from global pressures that could
make small exchanges irrelevant in the global financial
market arena.
Over the
past years, various exchanges have been consolidating
through direct buyouts, exchanges taking a stake in
another, or through the creation of various forms of
alliances, including trading linkages.
The
linkage will be implemented through a common exchange
gateway, which is a decentralized entry point to be set
up in each exchange for brokers and investors to trade
securities listed on any of the Asean exchanges.
In
another development, the PSE board also approved the
proposal to require trading participants to increase the
minimum amount of the surety bond posted by brokers and
conditioned upon the faithful compliance with securities
laws, rules and regulations.
The said
plan was recommended by broker-directors of the PSE
board.
The
board has backed up the brokers’ initiative to raise the
surety bond required under the securities law from P5
million to P10 million for brokers and P1 million to P2
million for dealers. This will be made applicable to all
brokers and/or dealers who have deferred compliance with
the P100 million minimum unimpaired capital requirement.
Under
the existing rules, the amount of the surety bonds
required to be filed pursuant to SRC Rule by broker
dealers who have elected to defer compliance with the
P100 million unimpaired paid up capital requirements is
fixed at not les than P5 million for brokers and not
less than P1 million for dealers. Such bonds shall be
conditioned upon the faithful compliance with the
provisions of the Code and rules and regulations adopted
by the broker dealer or of any salesman or associated
person while acting for him.
“We are
confident that we will get the full support of the
Securities and Exchange Commission for the approval of
this measure because we in the PSE believe that it will
safeguard investors’ rights,” Lim said. |
