The Philippine Stock Exchange (PSE) is set to increase the minimum unimpaired paid-up capital required for its trading participants, or stockbrokers, to strengthen financial stability and keep pace with market changes and inflation. Under the plan outlined in a consultation paper, brokers will need to reach at least P50 million in unimpaired paid-up capital by the end of December 2027, and hit the P100 million minimum by December 31, 2029. Those that have not met the P100 million requirement by the end of 2028 will also need to raise their surety bond from the current P12 million to P20 million.
The PSE noted that the minimum capital level for brokers was last adjusted in 2010, and that trading volumes, transaction values, inflation and overall market risks have risen significantly since then. Existing rules currently allow applicants who cannot meet the P100 million requirement to operate with a lower minimum, which was raised from P20 million to P30 million in late 2010. Separately, rules issued in 2015 under the Securities Regulation Code require brokers that defer full compliance with the P100 million capital standard to post a surety bond of at least P10 million, while dealers are required to post a minimum of P2 million.
