The Philippine Stock Exchange will soon introduce short selling, or an investing strategy that allows investors to bet on the decline of a certain stock, after the Securities and Exchange Commission approved the guidelines.
This was announced by the PSE, which noted that only companies that formed part of the PSE index (PSEi) and exchange traded funds were eligible for short-selling transactions.
“We are grateful to the SEC for approving the guidelines for short selling. We are optimistic this facility will lend support for our securities borrowing and lending program and help improve liquidity in our market,” PSE president and CEO Ramon S. Monzon said in a statement.
According to the PSE, the approved implementing guidelines for short selling transactions include provisions on eligible securities, procedures for short-selling transactions, and the execution of short selling orders.—MIGUEL R. CAMUS