On 4 September 2023, PHI SEC issued press release re promoting short selling.
- PHI SEC aims to promote short selling to increase trading activity in the stock market.
- Document dated 4 September 2023, received from PHI SEC 7 September 2023, summarized on 7 September 2023.
- PHI SEC is examining practices from other Asian markets, such as Singapore, Hong Kong, Malaysia, Thailand, and Indonesia, to guide PHI SEC's approach to short selling.
- It is considering the requirement of regular reports on short selling and securities borrowing and lending (SBL) activities to ensure compliance with existing rules.
- To align the short selling environment with major Asian markets to promote liquidity, market stability, investor protection, and the value of Philippine corporations' shares.
- PHI SEC aims to strike a balance between rules and market innovation, implementing necessary restrictions, while encouraging investors, traders to utilize this strategy.
- PHI SEC has guidelines for short selling, including eligibility criteria and requirements for maintaining a minimum short interest to outstanding shares ratio.
- Also approved guidelines for recording SBL and short selling transactions, ensuring proper borrowing arrangements are in place before entering short sale transactions.