CMEPA to boost market liquidity

Regulators and stock market players have welcomed the enactment of the Capital Markets Efficiency Promotion Act (CMEPA), as it is key to attracting more investors and boosting trading activity on the local bourse.

- BY JAMES A. LOYOLA

"The passage of CMEPA sends a clear message to both domestic and global investors that the Philippines is committed to building deeper, more efficient capital markets. This reform is expected to boost and strengthen liquidity, trading activity, capital formation, and contribute to broader economic growth," said Special Assistant to the President for Investment and Economic Affairs Frederick D. Go.

Go championed the passage of the law with the legislature. Among other provisions, CMEPA provides for a reduced stock transaction tax from 0.6 percent to 0.1 percent, which is seen as encouraging more trading activity at the Philippine Stock Exchange (PSE).