SEC: Local stock market to get boost from short selling

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The Securities and Exchange Commission (SEC) on Monday said it is banking on the potential of short selling to boost trading activity in the country’s equities market. “We are pushing to align the short selling environment with the major Asian markets, which has the potential to promote liquidity, stabilize the…

The Securities and Exchange Commission on Monday said it is banking on the potential of short selling to boost trading activity in the country’s equities market.

The SEC has paved the way for short selling in the country by issuing the relevant rules as early as 2018, when it approved the Philippine Stock Exchange’s guidelines on short selling transactions. Recently, the SEC has looked at the adoption or non-adoption of existing practices in other markets to advance short selling in the Philippines. In Asia, short selling is allowed in Singapore, Hong Kong, Malaysia, Thailand and Indonesia.

“We will balance our role as regulator and market innovator, imposing the necessary restrictions and safeguards while ensuring that they will not stifle investors and trading participants from fully taking advantage of this trading strategy,” Aquino said.

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