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Philippines SEC streamlines SBL framework
08 June 2026 Philippines
Image: Richie_Chan/stock.adobe.com
The Philippines Securities and Exchange Commission (SEC) is streamlining the securities borrowing and lending framework by centralising administrative functions with the Philippine Stock Exchange (PSE).
According to the SEC, the move aims to reinforce efforts to build a more efficient and integrated short selling market in the country.
On 15 May, the Commission gave the greenlight for 2026 Revised Guidelines for Master Securities Lending Agreements (MSLAs) and Accession Agreements to multilateral MSLAs proposed by the PSE.
Under the revised guidelines, the PSE will serve as the sole reviewing and pre-clearing body for MSLAs and multilateral MSLAs.
It will remove the requirement for SEC pre-clearance and certification prior to registration with the Bureau of Internal Reserve (BIR).
Effectively, this aims to reduce the MSLA registration processing timeline to five working days from the current seven working days.
Meanwhile, pre-clearance for Accession Agreements will be completed within one working day.
The streamlined process also lowers compliance costs for market participants through the removal of the SEC processing and certification fee worth 5,030 Philippine peso (US$81.55).
In addition, the PSE will now act as a one-stop shop for applicants and regulators, managing the entire administrative cycle, including the receipt of documents and fees, coordination of reviews, and the transmission of pre-cleared documents to the BIR.
The PSE will likewise handle the assignment of MSLA reference numbers for BIR registration purposes, a function previously performed by the Commission.
Copies of all endorsed and transmitted documents shall be furnished to the SEC for regulatory oversight and post-audit purposes, consistent with SEC Memorandum Circular No. 7, Series of 2006, or the SEC Rules on Securities Borrowing and Lending.
According to the SEC, the move aims to reinforce efforts to build a more efficient and integrated short selling market in the country.
On 15 May, the Commission gave the greenlight for 2026 Revised Guidelines for Master Securities Lending Agreements (MSLAs) and Accession Agreements to multilateral MSLAs proposed by the PSE.
Under the revised guidelines, the PSE will serve as the sole reviewing and pre-clearing body for MSLAs and multilateral MSLAs.
It will remove the requirement for SEC pre-clearance and certification prior to registration with the Bureau of Internal Reserve (BIR).
Effectively, this aims to reduce the MSLA registration processing timeline to five working days from the current seven working days.
Meanwhile, pre-clearance for Accession Agreements will be completed within one working day.
The streamlined process also lowers compliance costs for market participants through the removal of the SEC processing and certification fee worth 5,030 Philippine peso (US$81.55).
In addition, the PSE will now act as a one-stop shop for applicants and regulators, managing the entire administrative cycle, including the receipt of documents and fees, coordination of reviews, and the transmission of pre-cleared documents to the BIR.
The PSE will likewise handle the assignment of MSLA reference numbers for BIR registration purposes, a function previously performed by the Commission.
Copies of all endorsed and transmitted documents shall be furnished to the SEC for regulatory oversight and post-audit purposes, consistent with SEC Memorandum Circular No. 7, Series of 2006, or the SEC Rules on Securities Borrowing and Lending.
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