MANILA -The Philippine Stock Exchange (PSE) will soon stand taller among its regional peers as it prepares to introduce short-selling in about two weeks after overcoming regulatory hurdles and delays spanning three decades.
PSE president Ramon Monzon said on Wednesday the target launch date for short selling—a mechanism that allows investors to place bets and profit from a drop in share prices—would be on Oct. 23 this year after winning the support of the Securities and Exchange Commission and Bureau of Internal Revenue.
READ: PSE short selling nears reality
The Philippines has lagged behind close neighbors such as Singapore, Malaysia and Indonesia in terms of offering products such as short selling, which was first proposed in the 1990s.
It comes at a time when the bourse seeks to bolster participation in the capital markets, especially from small retail investors.
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During a business forum hosted by the PSE and investment bank UBS on Wednesday, Monzon also laid down plans for more products such as cross border trading, algorithmic and volume-weighted average price trading and derivatives trading over the next two years.
“Current market conditions may not be positive or bullish but it presents us opportunities to undertake much needed reforms that can further support the market when it recovers,” Monzon said during the event, which included guests from the House of Representatives such as Speaker Martin Romualdez and Albay Rep. Jose “Joey” Salceda.