The Securities and Exchange Commission (SEC) is looking at developing a futures market in the Philippines as it seeks to expand options for investors and further strengthen the capital market.
The agency said it has partnered with the Asian Development Bank and the United States Commodity Futures Trading Commission (CFTC) to study the framework of the plan.
Representatives of the three agencies met last month to tackle the fundamental aspects of derivatives such as legal frameworks and regulatory elements, investor protection and regulation, and contract design and transaction clearing mechanisms.
The meeting was meant to initiate discussions and address concerns among focal SEC personnel and key industry and government stakeholders on the formulation of a derivatives market in the Philippines.
“Developments in the deriva-tives market as a whole have contributed to more complete financial markets, improved market liquidity, and increased the capacity of the financial system to price and bear risk effectively— ultimately, ushering in stronger economic growth over time,” said McJill Bryant Fernandez, SEC commissioner.
