Securities listed, traded, and settled in US dollars
Reduces foreign exchange risk exposure for investors and issuers alike
Alternative investment instrument for investors with US dollar deposit accounts
Dollar Denominated Securities (“DDS”) are securities listed, traded and settled in US dollar. The introduction of DDS aims to provide issuers and investors more instruments to meet their specific requirements. It can provide issuers with dollar denominated requirements an opportunity to raise capital at the Exchange without incurring foreign exchange risks. In the same manner, the product can also reduce the currency risk exposure of foreign investors who trade PSE-listed securities. Moreover, DDS offers local investors an alternative investment option for their USD currency holdings.
The DDS shall be a different asset class than the issuer’s existing listed shares at the Exchange. DDS is different from the Dollar Denominated Trading (“DDT”) Facility launched in 2003, which allowed Philippine listed companies with offshore-listed common shares denominated in USD to be traded locally at the PSE. Under DDT, the subject shares that were quoted and traded in US dollars are the same shares that are listed and quoted in Philippine pesos.
The introduction of the DDS product is part of the PSE’s broader strategy of developing new products and services for the Exchange’s stakeholders.