The Philippine Stock Exchange, Inc., as a catalyst in the development of the capital market, initiated the institutionalization of Securities Lending in the country. The importance of securities lending has significantly increased in the past years, as a critical factor in improving settlement efficiency, increasing market liquidity and development of derivative instruments. Hence, in cooperation with the Securities and Exchange Commission, the Bureau of Internal Revenue, the Bangko Sentral ng Pilipinas, and the Department of Finance, we have put together the regulatory framework that would facilitate the development and implementation of this facility.

This webpage has been designed to provide the market players with the basic concepts on securities lending and the related Rules and Regulations that would govern the conduct of such transaction. We hope that through this, we develop a clearer understanding of the mechanics of securities lending, clarify the taxation issues and other regulatory concerns, and guide participants on the reportorial requirements under the SEC, PSE and BIR Rules and Regulations.