The government has an unofficial target of joining the Trading Link by the November 2015 Asia-Pacific Economic Cooperation (APEC) summit, which the Philippines will host, Securities and Exchange Commission (SEC) Chairperson Teresita J. Herbosa told BusinessWorld in an interview last week.
“Actually we’re supposed to be part of (the ASEAN Trading Link) by 2015 at the latest… Maybe before the APEC meeting here. But we have to first get our membership in IOSCO,” the commissioner said.
The IOSCO includes over 120 regulatory agencies and sets global standards for the securities sector.
The ASEAN Trading Link, on the other hand, is intended to connect the stock markets of six ASEAN members as part of an effort to promote them as a single asset class. The link, which is now live, currently involves only three bourses: the Stock Exchange of Thailand, Bursa Malaysia and the Singapore Exchange.
Asked about the status of the application for IOSCO membership, Ms. Herbosa said: “Siguro we’re going to receive word mga November pa. Kasi we were targeting September, pero ’di raw kami mate-take up ngayong July eh. So if it’s taken up mga August or September, the next meeting of IOSCO will be November. Siguro that’s when they can take it up.”
The SEC was supposed to make a case for inclusion with an IOSCO review committee in Paris this month.
Ms. Herbosa said IOSCO’s board will still have to conduct a “peer review” in order to assess if SEC’s application for full membership is “compliant.”
“We cannot be a part of this ASEAN capital markets initiatives if we don’t become a member of IOSCO,” she said, noting that the government is confident of being granted full IOSCO membership by November next year.
“[W]e’re very serious about fulfilling our role as securities regulator.”
The Philippines postponed its participation in 2011, as it sought more time to improve trading volumes and implement reforms, including the planned merger of the local stock and fixed-income markets.
The Philippines has been lobbying for IOSCO membership since 2008 but has been held back by the failure to improve regulator access to bank records
Written by: Daphne J. Magturo