The Philippine Stock Exchange (PSE), like many smaller exchanges worldwide, has introduced a new securities lending initiative. While less flashier than allowing ETFs to trade on the exchange, the securities lending program aims to generate liquidity and enhance price discovery. The actions of the PSE stand in contrast to European regulators who are selectively banning short selling (although not securities lending) for their own purposes.
Here is Bloomberg’s article from Oct 5 2011 covering comments from the PSE’s President.
Here is the Philippine Stock Exchange’s home page for securities lending, although this page does not present the new system mentioned yesterday.