Jose Aquino, director of the SEC’s market regulation department, said the four foreign brokers – Nomura Securities, Magnum International Securities, Keppel Securities and SG Securities – have indicated they would return to active trading by renewing their annual fees for brokers/dealers.
"There has been no appeal or protest from the brokers so far since the resolution came out but some of them have requested for an extension in paying their renewal fees," he said.
In a Dec. 6 order, the SEC said brokers/dealers will no longer be allowed to go under voluntary suspension and instead will be treated as new registrants should they decide to resume operations.
For those already under voluntary suspension but intend to resume operations next year, the SEC has given them until Dec. 14 to pay their renewal fees.
The SEC’s decision to disallow voluntary suspension was prompted by inquiries from brokers who have previously suspended their operations but continue to seek the renewal of their licenses or register anew as brokers and/or dealers.
Under the resolution, brokers who have ceased operations and would re-apply for registration would then be subject to the revised capitalization rules which impose a minimum paid-up capital of P100 million for new registrants.
At present, active brokers need only to post a minimum net capital of P10 million, inclusive of a P5 million surety bond for brokers. In addition, a P1-million surety bond for dealers is required, as the SEC has permitted the dual roles of broker-dealer.
On the other hand, brokers who have suspended their operations are only required a P2 million minimum net capital base.
Out of the 184 member-brokers that made it to the stockholders list of the demutualized PSE, only 136 are still actively trading amid the poor market conditions.
Since 1998, a number of stockbrokerage firms – most of whom are foreign units – have temporarily halted their operations through voluntary suspensions.
Aside from the four earlier mentioned, other brokerage firms which sought voluntary suspension this year are All AsiaSecurities Management Corp., BNP Paribas Peregrine Securities, Citicorp Securities International, E*Trade Securities, FEB Stock Brokers, Orion-Squire, Topwin Securities, UOB Securities, UPCC Securities, WorldSec Securities, Merrill Lynch, OCBC Securities, G.K. Goh Securities, HSBC Securities, Guoco Securities, and Rashid Hussain Securities. – Conrado Diaz Jr.