SEC seeks to launch derivatives market,taps foreign experts to hold workshop

The Securities and Exchange Commission (SEC) is looking to create a futures market in the Philippines to provide more options for investors and enhance the capital market.

The SEC said it held a training workshop on derivatives regulation, in collaboration with the United States Commodity Futures Trading Commission (CFTC) and the Asian Development Bank (ADB). The workshop took place from Aug. 12 to 16 at the SEC headquarters in Makati City.

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The CFTC, represented by deputy director Kevin Piccoli, helps countries develop their own commodities markets.

SEC commissioner McJill Bryant Fernandez said the training supports efforts to create regulatory frameworks for commodity futures and an electricity derivatives market, which are essential for deepening capital markets.

“The Derivative Market Oversight and Regulatory Scheme complements our ongoing efforts to develop regulatory frameworks for commodity futures and an electricity derivatives market, in pursuit of our mandate to deepen capital markets,” Fernandez said in his opening remarks.

The training covered key topics like legal frameworks, investor protection, contract design, and transaction clearing processes. It aimed to foster discussions among SEC staff and other stakeholders including government agencies and private sector representatives from the Philippine Stock Exchange Inc., Bangko Sentral ng Pilipinas, Department of Agriculture, Department of Energy, Independent Electricity Market Operator of the Philippines, Inc., Philippine Dealing & Exchange Corp., University of the Philippines Law Center – Institute of Government and Law Reform and Power Sector Assets and Liabilities Management Corporation.

Fernandez said a well-developed derivatives market enhances financial markets, improves liquidity, and helps manage risks, which can lead to stronger economic growth.

The SEC also held discussions with ADB representatives about future collaboration on capital market development and reforms.

SEC chairperson Emilio Aquino expressed gratitude to ADB and CFTC for their support and reaffirmed the SEC’s commitment to finding innovative solutions to improve access to funding for businesses and provide diverse investment options for the public.

The SEC said it continues to engage in regional initiatives focused on sustainable finance and capital market development.