The Philippine Stock Exchange (PSE) Board of Directors has unanimously approved a recommendation by its broker-directors to require trading participants to double the minimum amount of the surety bond posted by brokers.
The bourse said that the approval is conditioned upon the faithful compliance with securities laws, rules and regulations. The PSE's Market Integrity Board previously endorsed a similar measure.
The PSE said that its board has backed the brokers' initiative to raise the surety bond required under the securities law from P5 million to P10 million for brokers and P1 million to P2 million for dealers.
This will be made applicable to all brokers and dealers who have deferred compliance with the P100-million minimum unimpaired capital requirement.
"We are pleased that the broker-directors have taken it upon themselves to make a proposal that will significantly ensure investor protection and boost stakeholders confidence in our stock market," said PSE president …