The government and the private sector are moving forward to create new investment products for innovation and advancement in the capital markets, both equities and fixed income.
During the Latham & Watkins Philippines Conference 2016 on Tuesday, the Securities and Exchange Commission (SEC) said they are “almost finished” with a review of the rules on the planned dollar-denominated securities (DDS), while the Philippine Stock Exchange (PSE) is in the middle of crafting the proposed Public-Private Partnership (PPP) securities.
“The PSE rules on that are up for review, and we’re almost finished with it. Dollar- denominated securities would mean a person with foreign currency account can invest in securities issued by companies but denominated in dollars, but could be [issued by]Philippine companies also,” Teresita Herbosa, SEC chairperson, told reporters during the conference.
“This bodes well with the BSP’s [Bangko Sentral ng Pilipinas] liberalization of the exchange of pesos to dollars,” she added.
There are still concerns regarding some clauses in the rules, which include the exclusion of the Philippine banking system in the DDS transactions. This issue will be threshed out in the next few meetings between the SEC and other stakeholders.
PSE Chief Operating Officer Roel Refran said the exchange is now crafting the rules covering the PPP securities or PPP project-based stocks which are to be listed on the PSE.
“Since the administration is very keen on this, in the infrastructure space, we’re doing the rules on the PPP securities. We still don’t have a model, but it will be an innovative project for the next six years,” Refran said during a panel discussion at the conference.
Refran said the “innovative products” or investment instruments would do well in the capital markets, noting the support from the SEC and the PPP Center.