The Philippine Stock Exchange (PSE) is rolling out proposed amendments to ETF regulations, designed to attract more products and participants and boost market activity.
Key changes include allowing collective investment schemes—such as umbrella funds and UITFs—to list multiple sub-funds under one issuer. The exchange will also accept listings of instruments beyond ETF company shares, permit actively managed ETFs, and cut the minimum capital requirement from ₱250 million to ₱50 million. For established investment firms with at least five years of operations, the requirement may drop as low as ₱1 million.
Other revisions let issuers appoint just one authorized participant, separate the roles of authorized participant and market maker, and clarify rules for ETFs tracking foreign-listed assets. PSE president Ramon S. Monzon said the changes aim to give asset managers stronger reason to launch and list ETFs.
Alongside this, the PSE is drafting rules for a Negotiated Trade Reporting Facility to improve liquidity and fund flow. Both the ETF and new trading facility guidelines will be opened for public consultation.
Separately, the PSE and its subsidiary PDTC are updating Stock Borrowing and Lending (SBL) rules to introduce directed pooled lending, a model meant to make it easier for foreign institutions to join the domestic market. Revised SBL guidelines were submitted to the SEC in April. The two bodies are also reaching out to pension, index, and insurance funds to encourage use of PDTC’s lending services and expand available liquidity.
