The DoF pushes the digitalization of the PH capital market – The Manila Times

The country’s first electronic securities issuance portal (e-SIP) that would enable online registration and processing of documents in the primary market will pave the way for streamlining and digitizing transaction flows in financial markets from the country.

In a statement released Monday, the finance department, citing the report by Philippine Dealing System Holdings Corp. The user is piloting e-SIP with its four-year 10 billion peso bond offer on April 21.

ALI will also become the first company to list its corporate bond offering in the capital market and the Philippine Dealing and Exchange Corporation (PDex) using e-SIP.

“Instead of submitting large documentation twice to the PDS ledger and the Philippine Dealing and Exchange Corp, (primary market issuers), (issuers) would no longer have to submit electronically only once, removing paper submissions, ”said Ma. Theresa Ravalo, President and CEO of the Philippine Depository and Trust Corp. (PDTC) of the PDS Group and the Philippine Securities Settlement Corp. (PSSC) at the recent CMDC meeting.

The CMDC, a coordinating body tasked with facilitating the development of the Philippine capital market, is also co-chaired by lawyer Benedicta Du-Baladad, former president of the Financial Executives Institute of the Philippines (FINEX) and the Securities and Exchange Commission (SEC ) President Emilio Aquino.

“We hope that more issuers will soon follow ALI and integrate the system,” Ravalo said in his report.

The e-SIP portal would also allow investors to make their reservations for the bond
issues electronically and allow issuers to broaden their reach by selling their securities online.

Since some issuers have yet to familiarize themselves with electronic transactions, Ravalo said the PDS has made the use of the portal optional.

“What was once a paper-based process for issuers and investors, requiring the submission of physical documents and, in the case of investors in the provinces, sending these documents to the head office for submission to the register, with the e -SIP portal, it is now possible to submit electronically. For issuers, this would mean a broader reach for their investors, ”Ravalo said.

Ravalo said that e-SIP also cuts the time for submitting issuer requirements from three days to a single day.

She said the next step for the e-SIP project is to digitize the paper-heavy pre-settlement processes in the secondary corporate bond market.

The PDS plans to implement this second phase of the project by the third quarter of 2021.

Dominguez, for his part, said the e-SIP project would not only digitize capital markets but also benefit the environment as eliminating large paper submissions would save millions of trees.

“This is a very good initiative, and we would like to see how we are doing on a periodic basis,” Dominguez said.

During the meeting, Consuelo Garcia and Jose Emmanuel Hilado of FINEX presented to CMDC a digital roadmap for the Philippine capital market, which covers government bonds and corporate / bank bonds, trust funds and mutual funds, as well as common stocks and perpetual preferred stocks.

Garcia said a team formed for this effort agreed that the digital platform for financial markets will cover primary and secondary transactions and should connect to other registries such as the national identification system and electronic channels. negotiation and settlement.

According to Hilado, the project aims to digitize the entire bond lifecycle.

“It will take away the weak spots of retail investors so that we can make it more profitable for everyone. If we are able to do it, then we can say that we have democratized bond investing, ”said Hilado.

Hilado said digitization will remove the need for investors to fill out forms and go to banks to process their transactions to purchase financial instruments.

“The ideal configuration is the Bonds.PH application initiated by the Bureau of Treasury in partnership with PDAX (Philippine Digital Asset Exchange), as developer of the platform and Union Bank as broker. The app allowed small investors, including OFWs (Filipino Overseas Workers), to purchase retail Treasuries and Premyo Bonds from anywhere using their mobile phones and other devices, ” Hilado said.

About William G.

Check Also

Utkarsh SFB files new drafts and reduces IPO size to ₹500 crore

Utkarsh Small Finance Bank, headquartered in Varanasi, has re-filed preliminary documents with market regulator Sebi …