PASLA was incorporated in Hong Kong in 1995 and is an association of firms that are active in the business of borrowing and/or lending securities in Asian markets.
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PASLA provides a collective voice and an industry consensus on issues that affect the development of the securities lending business.
PASLA works with regional regulators and exchanges to assist in the further development of the securities lending business.
The Philippine Stock Exchange (PSE) announced that they will develop more financial products next year to attract more foreign investors back to the local bourse.
The PSE also plans to increase market activity by amending the listing rules to attract more companies to list and allow investors to engage in short selling.
We are pleased to see that the plans currently include approval of the use of the GMSLA and allowing the use of foreign collateral - two of the key elements of discussions that PASLA has had with the PSE over the last two years.
On 25 September 2020, China Securities Regulatory Commission (CSRC), People’s Bank of China (PBOC), and State Administration of Foreign Exchange (SAFE) released the new rules “Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors” (the “Measures”), and “Provisions on Issues Concerning the Implementation of the Measures” (the “Provisions”). The new rules will take effect from 1 November 2020.
The new rules further liberalized the Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) schemes, by relaxing qualification requirements, simplifying application process, expanding investment scope and facilitating investment and operations for QFIIs and RQFIIs.
PASLA welcomes these reforms as a significant step forward in accessing and opening up the domestic market for offshore participants. PASLA will continue to work, in conjunction with ASIFMA, with the relevant regulators to obtain further details and clarify salient points.
The Financial Services Commission (FSC) announced that they will extend the temporary ban on short selling on all stocks listed on the KOSPI, KOSDAQ and KONEX market.
The FSC had initially issued a temporary six-month ban on short selling on all stock markets on 16 March 2020 that was supposed to expire on 15 September 2020. However, the regulators have decided to extend this ban for another six months until 15 March 2021.
Regulated, transparent and covered short selling is an important characteristic of developed equity markets globally. It helps to create liquidity, reduce costs for market participants, manage risk in investors’ portfolios and encourage good corporate governance. Over the long term, PASLA believes that markets in which participants can express different views will be more resilient, more attractive to global institutional investors and better positioned to support economic growth and prosperity.
In November 2019, the Taiwan Stock Exchange (TWSE) proposed to extend the tenor of the Securities Borrowing and Lending (SBL) transactions and to adjust the collection frequency of the related fees, namely the SBL borrowing fee, TWSE SBL service fee and SBL brokerage processing fee. Due to COVID-19 pandemic in 2020, the regulator has decided to postpone the discussion.
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Membership is open to any organisation that is a regular borrower or lender of securities or regularly enters into repo transactions. The Board may decide to confer honorary member status on institutions that do not meet this definition.
Membership includes access to country profiles, summaries of Executive Committee meetings, country updates and much more.