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Country Profiles: Up and Coming Markets

15 March 2017

Beyond the major lending markets there are several others on the verge of becoming established including Malaysia, Indonesia, India and the Philippines

Read more: India Philippines Malaysia

Current key challenges include the need for local currency collateral and for counterparts to transact under local law. These issues will require resolution if Indonesia’s potential as a jurisdiction for securities borrowing and lending is to be fulfilled, and industry participants are continuing to engage with regulators to reach that end-goal.


The general regulatory framework for securities borrowing and lending (SBL) in the Philippines was put in place in 2006. SBL remains bilateral and is mostly for fails settlement. Parties to the SBL are usually trading participants and investment banks.

"The Philippine stock market has yet to experience the full vibrancy offered by SBL given the limited supply and the absence of short selling," said Hans B. Sicat president and CEO of the Philippine Stock Exchange. "With the launch of ETFs and the expected introduction of short selling in the market, the PSE realizes the need for increased access to SBL."

Sicat says the exchange has been in regular contact with international banks throughout the development process of its SBL and short selling regulations. "We think that there is significant interest, which we hope to realize by providing regulations that will be acceptable to these participants."

"Increasing the supply available for securities lending and getting our short selling programme off the ground is therefore one of the priority initiatives of the exchange."

 ICBC Standard Bank: Expert eye on repo

The Philippines has a clean netting opinion for GMRA activity. Although there is currently an active market with local banks in international securities, it would seem that this is not the main area of focus going forward. The financing of local assets against US dollar is of great interest to local banks and financial institutions.

According to Wei-Shee Chia of ICBC Standard Bank: "Regional assets, denominated in local currencies, are becoming more accessible in the global markets. ICBC Standard Bank has local knowledge and risk appetite to provide this product in the Philippines and is actively looking to expand its footprint in the country." 

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