6 banks keen on listing ETFs
MANILA, Philippines - At least 6 local and foreign banks have expressed interest and are in talks with the Philippine Stock Exchange (PSE) in listing exchange traded funds (ETF).
PSE president and chief executive officer Hans B. Sicat told reporters on December 21 that, with the strong interest from banks, he expects the first ETF listing in the first quarter of 2013.
Sy-led BDO Unibank Inc, Ayala-led Bank of the Philippine Islands (BPI), and Ty-led First Metro Investments Corp. (FMIC) are among the local banks that have previously expressed plans to create an ETF that will be listed with the PSE.
The PSE has been planning to issue the first draft of the ETF rules by January 2013, Sicat said. The Securities and Exchange Commission (SEC) approved the ETF rules in November.
An ETF tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. It allows investors to diversify their portfolio by buying a single product that represents a wide range of securities underlying an index.
Under the approved guidelines, corporations that are planning to offer exchange traded funds should have a minimum capitalization of P250 million.
Data from PSE showed there are over 1,000 ETFs with assets valued at over US$700 billion that are being traded in over 40 overseas stock markets. - Rappler.com