THE Philippine Stock Exchange Inc. (PSE) on Wednesday said it published its rules for dollar-denominated Securities, which provided the framework and guidelines for the listing, trading and clearing and settlement of securities issued in US dollars.
“With the newly approved rules duly signed by the Securities and Exchange Commission [SEC], our goal is to provide a new investment product that both our issuers and investors can leverage on to address their expanding requirements. We are grateful for the collective support of the SEC, the Bangko Sentral ng Pilipinas and all the stakeholders in helping develop these rules, ” PSE President and CEO Hans Sicat said in a statement.
The rules allow PSE-listed companies to issue a new set of securities, either common or preferred shares, which are quoted, traded and settled in US dollars.
This will provide listed companies the venue to raise new capital in US dollars to meet their dollar needs. It also gives investors with dollar holdings an investment vehicle that could provide viable returns, the PSE said.
While the SEC has approved the rules, its implementation will be rolled out once the necessary infrastructure for the listing, trading and clearing and settlement are put in place.
The PSE has scheduled this month a number of seminars and information awareness campaign for trading participants and other stakeholders.
“We shall be working on preparing the market and infrastructure over the next four weeks to six weeks to ensure the smooth and successful introduction of the dollar-denominated securities. Being a new product, it is important for the PSE that all stakeholders are properly informed of its dynamics,” Sicat said.
The PSE has been working on introducing new products and services in the past four years as part of its strategy to expand the market, including providing rules for the listing for public-private partnership projects (PPPs).
“We understand the government is reviewing the relevant rules for real estate investment trusts and we hope this will result in the first REIT listing in the country. With all the efforts on the product development front coming to fruition, we look forward to an exciting 2017,” Sicat said.