PSE Announces Effectivity of Short Selling Guidelines, Other Relevant SBL Developments

​PSE releases information on additional pertinent SBL developments and the effectiveness of the short selling guidelines.

The Guidelines for Short Selling Transactions have been made immediately effective by the Philippine Stock Exchange, Inc. (PSE). This comes after authorities gave the green light for crucial Securities Borrowing and Lending (SBL) components. Only when an SBL program is in existence may short-selling take place.
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While the Bureau of Internal Revenue (BIR) accepted the filing and registration of the Global Master Securities Lending Agreement (GMSLA) in September 2023, PSE reported in May 2023 that the SEC had approved offshore collateral for SBL.

“We are grateful to the SEC and BIR for their approvals on important regulatory aspects of SBL and short selling. This development brings us a step closer to the full adoption and implementation of these much-awaited programs,” said PSE President and CEO Ramon S. Monzon.

Members of the PSE MidCap and PSE Dividend Yield indexes are now included in the PSE's amended list of assets that are eligible under its short-selling regulations, according to the PSE. Exchange-Traded Funds (ETFs) and the shares that make up the PSE index were the only ones initially regarded as suitable securities for short selling.

On the day that the short-selling program will formally commence, the PSE will issue a separate announcement.

The circular on the Regulatory Framework for Securities Borrowing and Lending and Short Selling Transactions is published on the announcements section of the PSE website.