Regulators in the Philippines have taken a number of steps to enhance its capital markets. For example, the Bureau of Treasury (BTR) implemented non-restricted trading across tax categories in the secondary market for local government securities to provide additional investment avenues for tax exempt institutions and individuals and increase liquidity in the bond market. 

SBL

However, Thomas Murray Data Services reports in a research note that although the Philippine Stock Exchange (PSE) rules and guidelines for securities-based lending became effective in February 2007, they have not been implemented as the PSE is still clarifying some provisions with the country’s Securities and Exchange Commission.

There have been no securities lending transactions to date apart from bilateral transaction between brokers, which are mostly to cover failed market trades. In addition, there are currently no registered lending agents in the market who would be the intermediary of the transaction.

Martin Corrall, regional product head for securities finance Citibank & chairman of Pan Asia Securities Lending Association says PASLA has spoken to the Philippines and a high level consulting paper was issued in 2015. “We have met with the country’s authorities and they do appear have a desire to develop the market,” he adds.