Government and private sector deepen capital markets – Manila Bulletin


Government and the private sector have continued to take advantage of digital technologies to make it easier and easier for small investors and businesses to participate in capital markets.

At a recent meeting of the Capital Market Development Council (CMDC), the Treasury Office, the Securities and Exchange Commission (SEC) and the Philippine Dealing System Holdings Corp. (PDS Group) presented updates on their respective streamlining and digitization initiatives.

Finance Secretary Carlos G. Dominguez III, co-chair of CMDC, said the council moved very quickly to lobby government and the private sector to make it easier for Filipinos to invest, especially in the bond market.

“We also ensure that their investments are well protected with robust cybersecurity systems,” added Dominguez.

The CMDC, which is also co-chaired by Benedicta Du-Baladad of the Financial Executives Institute of the Philippines (FINEX), and SEC President Emilio Aquino, is a public-private coordinating body responsible for promoting and developing the market. Philippine capital. .

In his report to the CMDC, Deputy Treasurer Erwin Sta. Ana said the Treasury previously released a mobile app that allows the public to access information about different types of government securities and understand its financing and debt management functions.

The Treasury mobile app also contains a full discussion of the risks of investing in the different types of government securities, as well as links to the front-end ordering platforms for retail Treasuries, Sta. Ana said.

“In future versions of the app, we will also include end-of-day price information for retail government securities. Thus, bondholders can easily track the value of their holdings based on prevailing market levels, ”Sta said. Ana added.

The PDS Group, represented by the Chairman and CEO of Philippine Dealing & Exchange Corp. (PDEx) Antonino Nakpil and CEO of Philippine Depository and Trust Corp. (PDTC) Ma. Theresa Ravalo, reported on the progress of the electronic securities issuance portal (e-SIP).

The e-SIP enables online submission of documents required for PDEx listing and PDTC registry services and facilities for issuers and their sales agents as part of their initial corporate bond public offerings.

Ravalo said that after Ayala Land Inc. (ALI) became the pilot user of e-SIP with its offer of a four-year 10 billion peso bond on April 21, four other issuers have integrated their securities and their investor clients via the portal.

“Regarding the streamlining of e-SIP for the aftermarket, there is ongoing development and testing, as well as strengthening of cybersecurity to ensure that the necessary cybersecurity mitigators are in place before move into the secondary market phase, ”she said at the meeting. .

Ravalo said the PDS Group is also working with the Bankers Association of the Philippines (BAP) and the National Association of Securities Dealers, Inc. (NASBI) to maximize the use of e-SIP in streamlining of the customer convenience process.

The goal is to deploy a standardized and digitized client suitability assessment form to eliminate the tedious process for investors of filling out the same forms multiple times when purchasing corporate bonds from different brokers.

Responding to Dominguez’s concerns about possible cyber attacks and scams, Nakpil assured CMDC that PDS has an ongoing vulnerability assessment and penetration testing program to immediately address potential threats to its systems.

“It’s an ongoing process that we lead. And we make sure we have the right tools in place to ensure safety, ”Nakpil said.

The SEC told the meeting that it continues to scale up its investor education program to encourage broad investor participation in the capital market and to protect the public from investment scams.

Noting the growing number of Filipinos looking to invest and the significant increase in the number of retail investors in the capital market, the SEC stressed the need to “protect the public from scams” and steer them towards options. legitimate investment.



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