PSE pushes stockbrokers to raise capital to ₱100 million
Published Jul 21, 2026 03:23 pm
Jose T. Pardo (left) and Ramon S. Monzon (right)
The Philippine Stock Exchange (PSE) is proposing a phased increase in the minimum capital required for stockbrokers and dealers to ₱100 million to hedge against rising transaction sizes, inflation, and systemic risks.
The exchange issued a memorandum requesting public feedback through July 31, 2026, on its proposal to raise the unimpaired paid-up capital threshold for trading participants from the current ₱30 million level.
“Since the minimum unimpaired paid-up capital for broker-dealers was last adjusted in 2010, the market has seen a substantial growth in transaction sizes, volumes, inflation, and systemic risks,” the bourse said in the document.
Under the proposed roadmap, the PSE plans to scale up equity buffers over a multi-year period, aiming for full implementation by late 2029—nearly two decades after the previous baseline was established.
The mandatory recapitalization process is scheduled to begin on Dec. 31, 2027, when trading participants must increase their unimpaired paid-up capital to a minimum of ₱50 million.
By Dec. 31, 2028, market participants that have not yet reached the ultimate ₱100 million threshold will be required to raise their surety bond coverage to ₱20 million from ₱12 million. By Dec. 31, 2029, all trading participants must strictly maintain at least ₱100 million in unimpaired paid-up capital.
The proposal revises framework rules set under the 2009 PSE Rules Governing Trading Rights and Trading Participants. Under those standards, newly applying brokerages that fell short of the ₱100 million benchmark were permitted a minimum threshold of ₱20 million effective Dec. 31, 2009, which was later raised to ₱30 million by Dec. 31, 2010.
Existing market regulations have allowed brokerages to defer meeting the ₱100 million benchmark provided they post dedicated collateral. Section 28.1.6 of the Securities Regulation Code’s 2015 Implementing Rules and Regulations allows broker-dealers holding off on full capital compliance to file a surety bond of no less than ₱10 million for brokers and ₱2 million for dealers, or an amount specified by the Securities and Exchange Commission.
The PSE’s proposed rule changes aim to index requirements against cumulative inflation, fortify the domestic brokerage ecosystem against market shocks, and align participant balance sheets with expanded trading activity on the local exchange.