The Securities and Exchange Commission is reinforcing efforts to build a more efficient and integrated short selling market in the country, according to Philstar Biz. The agency is streamlining the securities borrowing and lending framework by centralizing administrative functions with the Philippine Stock Exchange.
The move aims to reduce operational complexities and improve market liquidity. By consolidating administrative tasks under the PSE, the SEC expects faster processing of securities borrowing and lending transactions, which are critical for short selling activities.
Market participants view the initiative as a positive step toward deepening the Philippine capital market. The streamlined framework is expected to encourage more institutional investors to engage in short selling, providing greater price discovery and risk management tools.