PSE to introduce additional regulatory reforms

After the publication of recommended Market Making rule revisions on June 3, 2026, The Philippine Stock Exchange, Inc. (PSE) is set to release proposed rule amendments for Exchange Traded Funds (ETFs).

In the revised rules, Collective Investment Schemes, including umbrella funds and unit investment trust funds (UITFs) may now list their multiple sub-funds under one ETF issuer. The listing of different types of securities, such as fund units, in addition to shares of an ETF company, will also be accepted by the Exchange. Actively managed ETFs will likewise be allowed to list. Another salient revision is the reduction of the capitalization requirement for issuers from Php250 million to Php50 million, with an option to reduce to as low as P1 million for investment companies with at least 5-year track record. The revised rules also allow ETF issuers to appoint only one Authorized Participant to handle the creation and redemption of ETF shares or units. The market maker for ETF also need not be an Authorized Participant under the proposed amendments. The amendments also cover clearer rules on allowing ETFs with underlying indices that track foreign exchange-listed securities.

“We are working on reviving our ETF market and we hope these rule changes will provide the impetus for asset managers to structure and list ETFs,” said PSE President and CEO Ramon S. Monzon.

PSE is also developing new rules on Negotiated Trade Reporting Facility, which is a facility for brokers to execute their trades that is similar to negotiable trading facilities in other exchanges. This facility aims to boost liquidity with the efficient flow of funds in the market, among others.

Both the ETF and Negotiated Trade Reporting Facility rules will be released to the public for consultation purposes.

Meantime, PSE and its wholly-owned subsidiary Philippine Depository and Trust Corp. (PDTC) are collaborating with multiple stakeholders to amend the PSE SBL rules to allow the execution of directed pooled lending (i.e. bilateral SBL where the lender and borrower are identified) through PDTC’s SBL facility. This new SBL model will make it easier for foreign institutions to participate in the domestic SBL market. PSE submitted the amended SBL rules that incorporate directed pooled lending to the Securities and Exchange Commission on April 16, 2026.
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PSE and PDTC are likewise engaging with pension funds, index funds, and insurance companies to encourage them to participate in the PDTC’s Lending Agency Service and populate the lending pool.