Regulator approval seen for ETF

MANILA, Philippines - Corporate regulators are set to approve the listing rules on exchange-traded fund (ETF) that will provide an additional investment product to the public.

“[The ETF listing rules] are up for approval this week,” Securities and Exchange Commission (SEC) chairperson Teresita J. Herbosa told reporters on the sidelines of a Makati Business Club forum.

Herbosa added that SEC is also finalizing the form for the companies that will set up an ETF.

In January, the Philippine Stock Exchange (PSE) submitted to the SEC its proposed rules that will govern the listing and trading of ETFs after it gathered public comments.

ETF are securities and investment instruments that monitor a commodity of assets like an index fund but trades like a normal stock in an exchange.

Last week, PSE president and CEO Hans B. Sicat said the local bourse expects the first listing of an ETF in April.

At least three firms, First Metro Investment Corp. of the Metrobank Group, Sy-led BDO Unibank Inc. and Bank of the Philippine Islands of the Ayala conglomerate have expressed their plan to offer ETFs.

Sicat earlier said ETFs will provide several advantages and investment options to investors including liquidity especially for those who cannot directly access specific sectors in the market due to a country’s specific regulatory environment.

The creation of an ETF would allow investors to have more investment options aside from the existing stocks in the market.