The Securities and Exchange Commission (SEC) has approved the application of Citisec Online Trading Corp. to engage in online trading of securities subject to certain conditions.
Giving its conditional approval, the SEC said Citisec's online trading should be limited to blue chip stocks listed at the Philippine Stock Exchange. The SEC said Citisec is not allowed to trade in foreign stocks.
"In view of the infant stage of Internet trading in the Philippines, trading should be limited to blue chip stocks and no foreign stock will be traded and executed through it," the SEC commission en banc said.
The SEC added that all trades should still go through the member-broker's communication front-end equipment and as such, is still transacted by said broker in the exchange's Maktrade system and not by clients directly.
Citisec applied last year for a license with the SEC as a non-exchange member broker/dealer in securities.
Incorporated last year, Citisec is engaged primarily in the business of broker/dealer in securities of any kind and of every description, including online stockbrokerage services through Internet technology.
It is not a member of the PSE but will use member-brokers to execute its trades. It will provide online services which will allow its clients to take control of and execute their own trades using the Internet. It will not give investment advice to clients but will only provide the electronic processing capabilities to allow clients to have access to the PSE. It will offer its services primarily through its web site.