The Philippine Stock Exchange said it obtained the go-signal of the Securities and Exchange Commission to take over the operations and trade-related assets of brokerage firm DW Capital Inc.
PSE president Ramon Monzon said the SEC directed the exchange to take over the operations of DW Capital and take actions to protect customer accounts, including the preservation of the assets, books and records of DW Capital.
The exchange asked all customers of the brokerage firm to furnish documents supporting their claim against DW Capital within 30 days to enable the PSE to validate customer accounts and settle DW Capital’s liabilities.
The PSE on August 10 ordered a preventive suspension on DW Capital, which allegedly engaged in unauthorized trading of securities worth P2.6 billion.
The PSE issued the order after the lawyers of the clients of DWCI requested CMIC to prohibit DW Capital from trading the shares of stock of their clients, and to direct DW Capital to preserve the records of transactions pertaining to subject securities.
DM Capital clients also claimed that some shares of stocks were not delivered by the brokerage company. They demanded the immediate delivery of the securities.
The SEC conduced an investigation against the brokerage firm after Capital Markets Integrity Corp., the watchdog unit of the PSE, sought the corporate regulator’s nod to take over DW Capital.
The SEC under the Securities Regulation Code and upon verified complaint by any party, may order an exchange or a self regulatory organization to take over the operation of a failed trading participant to preserve and protect the books, records, customer accounts and trade-related assets, and settle its liabilities to customers.
CMIC is an SRO and the primary regulator of the trading participants of PSE.
