SEC cuts red tape for securities deals
MANILA, Philippines – The Securities and Exchange Commission (SEC) has streamlined the approval process for securities borrowing and lending transactions, a move aimed at making the country’s short-selling market more efficient while reducing compliance costs for market participants.
In a recent resolution, the SEC approved the 2026 Revised Guidelines for Master Securities Lending Agreements (MSLAs) and Accession Agreements to multilateral MSLAs proposed by the Philippine Stock Exchange (PSE).
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Under the revised framework, the PSE will become the sole reviewing and preclearing body for MSLAs and multilateral MSLAs.
The revision removes the need for SEC preclearance and certification before registration with the Bureau of Internal Revenue (BIR).
As a result, the registration process for MSLAs will be shortened to five working days from the current seven. Preclearance for Accession Agreements, meanwhile, will be completed within one working day.
The SEC said the streamlined system is designed to support the continued development of the securities borrowing and lending framework, a key component of the country’s short-selling market.
“The streamlined process also lowers compliance costs for market participants through the removal of the SEC processing and certification fee worth P5,030,” the regulator said.
One-stop shop
In addition, the PSE will now serve as a one-stop shop for applicants and regulators. The exchange will oversee the receipt of documents and fees, coordinate reviews and transmit precleared documents to the BIR.
The PSE will also take over the assignment of MSLA reference numbers used for BIR registration, a function previously handled by the SEC.
Despite the shift in administrative responsibilities, the regulator said it would continue to maintain oversight of the process.
Copies of all endorsed and transmitted documents will still be furnished to the SEC for regulatory monitoring and postaudit purposes, consistent with SEC Memorandum Circular No. 7, Series of 2006 or the SEC Rules on Securities Borrowing and Lending.
The latest reform forms part of broader efforts to strengthen market infrastructure and improve efficiency in the Philippine capital market, particularly as regulators seek to deepen participation in short selling and related trading activities. INQ
