The Philippine Stock Exchange (PSE) is undertaking significant reforms to attract more retail investors and enhance market integrity, aiming to draw them away from online gambling and cryptocurrency trading. Key initiatives include the introduction of a new trading engine later this year, which will reduce the minimum number of shares required for a single transaction. Additionally, the PSE plans to introduce new types of exchange-traded funds (ETFs), fast-track stockbroker accreditation, and allow margin trading and derivatives offerings for institutional investors.
In a related move to strengthen market stability and align with growing transaction sizes and inflation, the PSE is proposing a phased increase in the minimum capital requirement for stockbrokers and dealers. The current unimpaired paid-up capital threshold of $510,000 (₱30 million) is slated to increase to $1.7 million (₱100 million) by late 2029. The initial phase will require trading participants to raise their capital to $850,000 (₱50 million) by December 31, 2027. Those not meeting the $1.7 million (₱100 million) target by December 31, 2028, will need to increase their surety bond coverage to $340,000 (₱20 million) from the current $204,000 (₱12 million).
Concurrently, the Securities and Exchange Commission (SEC) has implemented a 10-year cumulative term limit for broker directors on exchange boards, with a mandatory one-year cooling-off period after five cumulative years of service. This regulation, outlined in SEC Memorandum Circular No. 17, Series of 2026, aims to improve corporate governance, foster fresh perspectives, and broaden board representation. Penalties for non-compliance include a fine of $17,000 (₱1 million) per broker director seat and an additional $510 (₱30,000) daily for every month the director remains in office beyond the allowable term.
Analysts have largely welcomed the SEC's term limit policy, viewing it as a move to strengthen governance standards, encourage leadership renewal, and promote more balanced and credible board decision-making. The rule affects several long-serving broker directors at the PSE, including Ma. Vivian Yuchengco (28 years), Eddie Gobing (25 years), and Wilson Sy (12 years). The SEC has also provided a two-year transition period for incumbent broker directors, allowing them to complete current terms and be eligible for the next two annual elections, while exchanges are encouraged to diversify their boards with independent directors and experts in capital markets.
