The Philippine Stock Exchange Inc. (PSE) is preparing to amend rules on securities borrowing and lending, a move that will remove regulatory barriers to short selling, according to a report by Philstar Biz.
Short selling, a trading strategy where investors sell borrowed stocks hoping to buy them back at a lower price, has long been restricted in the Philippine market due to regulatory concerns. The PSE's amended rules aim to establish a clear framework for securities lending, addressing legal and operational hurdles that previously hindered the practice.
The development is seen as a significant step toward modernizing the local bourse and aligning it with global market standards. Market participants expect that enabling short selling could improve price discovery and provide greater flexibility for institutional investors.