SEC Proposes Dynamic Margin Trading Rules for Philippine Stock Market

The Securities and Exchange Commission (SEC) of the Philippines has proposed an overhaul of SRC Rule 48.1, aiming to modernize the country's stock market margin trading rules. The draft Memorandum Circular would introduce a dynamic 'Risk-Sensitive Margin Methodology' calculated by the Philippine Stock Exchange (PSE), which considers asset volatility and liquidity.

Under the proposed guidelines, investors can borrow up to 60% of security value, with an initial equity requirement of 40%. The maximum borrowing limit is higher than the current cap of 50%, and maintenance margins would be standardized at a minimum of 30% equity. Brokers offering margin lines must meet stricter requirements, including having at least ₱150 million in unimpaired paid-up capital and compliance with Risk-Based Capital Adequacy (RBCA) rules.

The proposed changes do not address virtual assets, such as cryptocurrencies or digital tokens, which remain excluded from collateral or marginable status. The public has until September 15, 2026, to provide feedback on the proposal.