Dragonfi first broker-dealer okd for global equities
DragonFi Securities Inc. has become the first Philippine broker-dealer authorized under the Securities and Exchange Commission (SEC) regulatory sandbox to offer local investors access to pre-approved global equities and exchange-traded funds through an over-the-counter depositary receipt model.
Manila, Philippines — DragonFi Securities Inc., the brokerage arm of DoubleDragon Corp. owned by Edgar Sia, became the first Philippine broker-dealer granted permission under the Securities and Exchange Commission (SEC) regulatory sandbox to provide local investors access to pre-approved global equities and exchange-traded funds via an over-the-counter depositary receipt model.
This regulatory sandbox initiative allows for the testing of innovative financial solutions while maintaining market integrity, stability, and robust investor protection. DragonFi's approach ties international diversification directly to participation in the Philippine capital markets, linking users' global investment limits to their domestic investments to foster growth and involvement in the local market.
Investors with certified Philippine holdings can access pre-approved foreign offerings up to 50 percent of their value, while PERA (Philippine Exchange Traded Fund) holders may invest up to 100 percent of their equivalent Philippine investment value. Through partnerships with leading global financial institutions, DragonFi secures international securities and cash assets within secure, segregated custody arrangements, while local client funds remain strictly segregated and protected within registered, licensed domestic institutions.
DragonFi CEO Jon Carlo Lim emphasized this as a significant milestone, enabling Filipinos to participate in the world's largest capital markets through a locally regulated, transparent system built on investor protection. The model incentivizes investors to expand their Philippine portfolios while diversifying internationally, aiming to increase participation and liquidity in the Philippine market.
DragonFi plans to commence phased sandbox testing post-SEC approval of its amended testing plan and client suitability protocols, starting with a closely monitored group before broadening access. DragonFi also holds the distinction of being the first SEC-accredited PERA administrator in the Philippines.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
