- Filipino investors could soon get a new way to access selected global equities and exchange-traded funds (ETFs) through DragonFi Securities, Inc., which has received approval from the Securities and Exchange Commission (SEC) to enter its Strategic Sandbox program.
- DragonFi said it is the first licensed Philippine broker-dealer authorized to offer access to global securities through an Over-the-Counter Depositary Receipt (OTC DR) model.
- Under the framework, investors with certified domestic holdings can access pre-approved foreign offerings worth up to 50% of the value of their local holdings.
Filipino investors could soon get a new way to access selected global equities and exchange-traded funds (ETFs) through DragonFi Securities, Inc., which has received approval from the Securities and Exchange Commission (SEC) to enter its Strategic Sandbox program.
DragonFi said it is the first licensed Philippine broker-dealer authorized to offer access to global securities through an Over-the-Counter Depositary Receipt (OTC DR) model.
Under the framework, investors with certified domestic holdings can access pre-approved foreign offerings worth up to 50% of the value of their local holdings.
This creates a link between an investor’s participation in the Philippine market and their access to selected overseas investments.
PERA holders have a higher limit, allowing them to invest up to 100% of their equivalent Philippine investment value under the framework.
The SEC Strategic Sandbox is designed to allow financial market innovations to be tested within a regulated environment. DragonFi said its OTC DR model is intended to provide global market access while remaining subject to local regulatory oversight.
“This is a defining milestone for DragonFi and for Philippine investors,” DragonFi CEO and co-founder Jon Carlo Lim said. He added that Filipinos should be able to participate in global capital markets through a locally regulated structure focused on transparency and investor protection.
SEC Commissioner McJill Bryant T. Fernandez also highlighted the importance of continuing to develop local capital markets even as investors gain access to international securities.
For KKBuddies, the development could provide another potential route to diversify beyond Philippine-listed investments. However, the framework currently covers pre-approved foreign offerings, meaning access does not necessarily extend to every global stock or ETF.
DragonFi said more details on the available offerings and implementation of the framework will be provided as the program progresses.