SEC approves PSE unit spin-off
By Miguel R. Camus
July 7, 2011
THE Securities and Exchange Commission (SEC) is set to allow the Philippine Stock Exchange (PSE) to spin off its broker regulatory function by the end of this month or in August.
SEC Chairman Teresita Herbosa said the corporate regulator is currently reviewing final details relating to the creation of the company to be called Capital Markets Integrity Corp. (CMIC).
“[Discussions have] been narrowed down to the qualifications of independent directors of CMIC,” Herbosa said during the release of the 2009 Corporate Governance Trends report compiled by the Asian Institute of Management. The PSE board earlier approved the spin-off of its marketregulation division into an independent and self-regulatory company to oversee the activities of its trading participants.
A plan to separate the PSE’s broker regulatory function was initiated under the term of former PSE president Francis Lim, who headed the bourse from 2004 to 2010.
Lim said the move would help to erase any perceived conflict of interest with in the exchange and thus, boost investor confidence. Even though it has yet to secure approval as a self-regulatory organization, CMIC has already taken early steps to boost monitoring activities.
In May CMIC inked an agreement with Korea Exchange for the acquisition and implementation of a surveillance system to monitor stock-trading activities. The system, called Exture Surveillance System, is targeted to be operational by the first half of 2012.