PSE: Philippines now more competitive with merger of stock, bond markets

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June 24, 2025 | 12:00am

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) expects the country’s capital market to strengthen and advance its position in the region following its takeover of the Philippine Dealing System Holdings Corp. (PDS).

The PSE said the Philippine capital market would be more competitive compared to other markets in the region with the consolidation of the equities and fixed income markets as well as the vertical integration of the depository under the same entity that operates exchange trading, clearing and settlement.

“Additionally, the synergies to be realized in the integration of the operations of and infrastructures of PSE and PDS are expected to create efficiencies that will allow for the introduction of more products and enhanced risk management processes that will redound to benefits for investors and market participants,” it said.

A number of key initiatives are seen by the PSE to significantly drive the growth of the capital markets.

It said that the Philippine Depository & Trust Corp. (PDTC) would act as a lending agent and operate a lending pool that can be tapped by investors who intend to either lend or borrow shares.

Aside from providing an efficient hub to connect borrowers and lenders, PDTC will also offer collateral management services for its users.

To improve transparency by encouraging shareholders to have direct access to information on their stock holdings, the PSE said that PDTC plans to actively implement and promote the name on central depository service for investors.

PDTC’s name on central depository facility is a depository facility available to investors that allows for safekeeping of clients’ securities holdings in a segregated account set-up per client.

The PSE said the campaign for increased lodgment of investor accounts in the depository would not only increase transparency, but also lead to greater efficiencies in managing shareholder information.

PDTC acts as a depository and registry and provides value-added services such as collateral management.

It also provides safekeeping and settlement services not only for listed fixed income securities in the Philippine Dealing & Exchange Corp. (PDEx), but also for listed equity securities in the PSE.

The PDS is the holding company that owns the PDEx, the operator of the fixed income exchange, as well as the PDTC.

PSE’s shareholdings in PDS currently stands at 92.06 percent, with plans to increase it to as high as 97 percent through the acquisition of shares held by the Development Bank of the Philippines and Land Bank of the Philippines.

New Securities and Exchange Commission (SEC) chairperson Francis Lim has earlier committed to further boosting the Philippine capital market under his term.

With the country’s capital market lagging behind, Lim said the SEC will be working with partners such as the PSE, PDEx, non-governmental organizations and the three branches of government to push for meaningful reforms.

“Inclusive growth demands deeper, broader and more accessible capital markets. We will leave no stone unturned to catch up – and with God’s help and our collective will, we will lead,” he said.