PSE adopts framework for dollar-denominated securities

The Philippine Stock Exchange (PSE) on Wednesday said it has adopted the framework for listing, trading, clearing and settlement of dollar-denominated securities (DDS), after it was approved by the Securities and Exchange Commission (SEC).

“With the newly-approved DDS rules duly signed by the Securities and Exchange Commission (SEC), our goal is to provide a new investment product that both our issuers and investors can leverage on to address their expanding requirements,” PSE President and CEO Hans B. Sicat said in an emailed statement.

The SEC approved the rules governing the DDS during an en banc meeting on November 10, to provide issuers with dollar-denominated requirements an opportunity to raise capital “without incurring foreign exchange risks.”

According to the PSE, the new rules will be rolled out once the necessary infrastructures are put in place.

“The DDS Rules allows PSE-listed companies to issue a new set of securities, either common or preferred shares, which are quoted, traded and settled in US dollars,” the PSE said.

“This will provide listed companies the venue to raise new capital in US dollars to meet their dollar needs. It also gives investors with dollar holdings and investment vehicle that could provide viable returns,” it added.

“We shall be working on preparing the market and infrastructure over the next four to six weeks to ensure the smooth and successful introduction of DDS.” Sicat said. — Jon Viktor Cabuenas/VDS, GMA News