Dollar Denominated Securities (DDS) are securities listed, traded and settled in US dollar (USD).

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 PSE’s Rules on DDS were approved by the Securities and Exchange Commission on November 10, 2016. The first DDS listing was on April 7, 2017 with Del Monte Pacific Limited issuing US Dollar Denominated Series A-1 Preference Shares.

Information on new listings may be viewed from the Listing Notices published in the EDGE website.

Both local and foreign investors may trade DDS as long as they have a foreign currency deposit unit (FCDU) account with any bank. An FCDU account is needed for a more efficient settlement process. Dollar-denominated dividends, if any, shall also be paid through the FCDU account.

DDS is traded like any other stock in the PSE during trading hours. However, an investor must trade through an Eligible Broker.

Trading of DDS is restricted to Eligible Brokers. Eligible Brokers are trading participants which complied with the Exchange’s requirements to ensure their operational readiness to trade DDS. The list of Eligible Brokers is posted in the Dollar Denominated Securities page of the PSE website.

Other than the difference in currency denomination, the mechanics for trading DDS is the same as trading peso stocks. It follows the board lot or round lot system which determines the minimum number of shares an investor can buy or sell at a specific price range.

However, the minimum lot sizes for DDS were adjusted from their peso denominated counterpart to make them more affordable to investors. The minimum price fluctuation and board lot for DDS listed in the Exchange are the following:

DDS also follows the same settlement cycle of any other security at the PSE, which is at T+3. This means that the delivery or payment for DDS transaction should be made before the settlement date of three working days after the transaction date.

Yes, an investor must have ready USD in his FCDU account to trade DDS. Settlement for purchases of DDS shall be in USD.

Investors may purchase USD from banks to invest in DDS, based on Section 44 of the Amendments to Foreign Exchange Regulations issued by the BSP.

The Securities Clearing Corporation of the Philippines (SCCP) has appointed BDO Unibank, Inc. as the designated settlement bank for the launch of DDS. This means that Eligible Brokers must have an FCDU settlement account with BDO. The SCCP may appoint more than one settlement bank.

However, the FCDU accounts of DDS investors may be with any bank.

Trading DDS will involve the same transaction fees as peso-denominated stocks such as SEC fee, PSE transaction fee, clearing fee. Selling investors will also need to pay stock transaction tax equivalent to 0.5% of the transaction value. These fees are payable in Philippine pesos (Php) converted using the PDEx closing USD exchange rate on transaction date.

Broker’s commission on the other hand, varies depending on the value of transaction with a maximum allowable commission rate of 1.5%. Such commission may be payable in either Php or USD.

For more information on DDS, please visit the Dollar Denominated Securities section of the PSE website under Products & Services. DDS transactions shall also be included in the End-of-Day report generated by the Exchange.