The Securities and Exchange Commission (SEC) has streamlined the country’s securities borrowing and lending framework by assigning all administrative functions to the Philippine Stock Exchange (PSE), aiming to create a more efficient and integrated short selling market.
The regulator approved the PSE’s proposed 2026 Revised Guidelines for Master Securities Lending Agreements (MSLAs) and related Accession Agreements. Under the new rules, the PSE becomes the sole body responsible for reviewing and pre-clearing these documents, removing the need for prior SEC approval and certification before registration with the Bureau of Internal Revenue (BIR). This change cuts the processing time for MSLA registration from seven to five working days, while pre-clearance for Accession Agreements will take just one working day.
Market participants will also see lower compliance costs, as the SEC’s P5,030 processing and certification fee has been eliminated. The PSE will now serve as a one-stop hub, handling document and fee collection, review coordination, reference number assignment for BIR registration, and transmission of pre-cleared files to the tax agency. All records will still be shared with the SEC for oversight and post-audit checks, in line with existing securities borrowing and lending rules.
This move simplifies procedures, reduces delays and expenses for industry players, and strengthens governance by concentrating operational tasks with the exchange while keeping regulatory oversight with the SEC.
