The Securities and Exchange Commission wants the Philippine Stock Exchange to have concrete plans on transaction cost reduction and definite corporate structure when the latter submits a new proposal to merge the fixed-income and equities exchanges.
SEC chairperson Terestita Herbosa said in an interview the corporate regulator was open to reviewing another proposal from PSE on the merger of the two exchanges.
Herbosa, however, said PSE in its new application should address certain provisions that were contained in SEC’s previous letter explaining why it had rejected PSE’s first merger proposal.
“We did tell them, more or less, that you have our last letter, all the things that we require there, you’re supposed to submit to us. We wanted them to make a concrete plan on how to reduce the cost of the transaction. Also, they should come up with the definite permanent structure of the consolidated operations and the joining of the two companies,” Herbosa said.
Herbosa said it was up to PSE on when it would file a new merger application.
“They are probably putting together already the documents needed as well as new plans,” she said.
She said SEC would reconsider the union of the two exchanges. “Of course, we are also enthusiastic to receive a new proposal from the PSE because we really want to approve applications rather than disapprove,” Herbosa said.
PSE president Hans Sicat said last week the bourse revived plans to merge the country’s equities and bond exchanges and intended to submit a new proposal to SEC within the year.
Sicat said PSE also talked to Finance Secretary Carlos Dominguez and other government officials about the plan.
Sicat said he was optimistic the planned merger would not be problem with the newly-formed Philippine Competition Commission.