PSE proposal opens door for Filipinos to invest in global stocks

Insider Spotlight

• Proposed GPDRs will allow Filipinos to trade international stocks and ETFs in pesos through local brokerage accounts.
• PSE also wants Philippine-listed companies to become investable overseas through depositary receipts.
• Reciprocal arrangements with foreign exchanges could expand cross-border access for both local and international investors.

Philippine Stock Exchange (PSE) president Ramon Monzon said on Friday that the proposed Global Philippine Depositary Receipts (GPDRs) framework is designed to expand Filipino investors' access to international equities while laying the groundwork for Philippine-listed companies to reach overseas investors.

The proposal, now undergoing public consultation, would allow the listing of peso-denominated GPDRs backed by global stocks, including single-company shares and exchange-traded funds (ETFs), broadening the range of investment products available on the local bourse.

The big picture

"Under the proposal, one can list peso-denominated GPDRs with underlying global stocks, including single stock and ETFs, with customizable conversion ratios to target a diverse range of consumer preferences," Monzon told InsiderPH on June 26, 2026.

Monzon said the framework would also streamline the listing process by allowing issuers to bring GPDRs to the exchange without conducting an initial public offering.

"Issuers can list shares directly on the exchange without the need for an IPO and leverage shelf-listings to issue tranches dynamically based on market demand," he said.

Ramon Monzon

The PSE chief said reciprocal arrangements could allow depositary receipts of Philippine-listed companies to trade on exchanges abroad.

Beyond inbound investing

While the proposal focuses on giving Filipinos easier access to overseas equities, Monzon said the exchange's longer-term objective is to enable Philippine-listed companies to gain exposure to international investors through the same mechanism.

"The most important element of our GPDR initiative will be the ability of our own listed companies to be traded in other exchanges via depositary receipts," he pointed out. "A reciprocal agreement or arrangement with the exchanges whose listed stock will trade in PSE will be pursued when practicable."

Such reciprocal arrangements could allow depositary receipts representing Philippine-listed companies to trade on partner exchanges abroad, potentially widening their investor base while deepening links between the PSE and foreign markets.

Why it matters

The proposed rules seek to make overseas investing more accessible by enabling Filipinos to buy and sell international equities through their existing local brokerage accounts, eliminating the need to open foreign trading accounts.

"The new program also enables the trading of international equities directly through local brokerage accounts, removing foreign brokerage friction and mitigating foreign exchange risks."

Monzon added that the framework is also designed to improve the handling of corporate actions for investors holding GPDRs.

"At the same time, investors can receive timely distribution of corporate entitlements, particularly cash dividends, net of fees and taxes."

The PSE earlier released the proposed GPDR rules for public comment, paving the way for global stocks to trade in pesos on the local exchange if the framework is approved. The initiative is intended to broaden investment choices for domestic investors while strengthening the Philippine capital market's connectivity with overseas exchanges.

— Edited by Daxim L. Lucas