PSE spins off regulation unit
The Securities and Exchange Commission has allowed Capital Market Integrity Corp. (CMIC), the market regulation unit of the Philippine Stock Exchange, to be spun off into an independent entity and operate as a self-regulatory organization (SRO).
The SRO status given to the CMIC, which is also enjoyed by the PSE, allows the market regulation company to formulate its own rules and police its constituents.
Asked to comment on the approval, PSE chair Jose Pardo said in a text message to the Inquirer that this was “very timely as SRO status of CIMC will further enhance confidence in our capital markets.”
“Also, CIMC can now fully function as an organization independent of PSE,” Pardo added.
Based on documents from the SEC, the corporate watchdog approved the SRO status after the CMIC complied with its requirements, particularly the signing of a memorandum of agreement with the PSE to address the following:
set out the protocol among the officials and employees of the two entities in the handling of data and information necessary for the effective surveillance and detection of trading-related irregularities and unusual trading activities; and
delineate jurisdiction on enforcement of listing, disclosure and trading rules; and address concerns over records of PSE-market regulation department and market integrity board and the cases and other matters pending with these units.
CIMC is chaired by Jose Luis Javier while the president is Antonio Garcia Jr.
Other key personnel are: Grace Calubaquib (head of surveillance) and Renee Lynn Miciano (head of investigation and enforcement).
There are four people currently employed by the PSE’s market regulation department who will be absorbed by the CIMC: Elvira Feliciano (head of regular examination); Maria Bernadette Bucalig (head of risk management); Desiree Amor Franco (auditor) and Victoriano Miguel Pareja (surveillance analyst).
The new entity is also scouting for additional personnel.
The creation of CIMC intends to remove some of the perceived conflicts of interest at the PSE board level and give trading participants higher confidence that an independent unit can police its own ranks in a professional manner.
