THE Securities and Exchange Commission (SEC) has approved the participation of Macodimarc Technology Corp. (Pluang PH) and G-Xchange, Inc. (GCash) in its regulatory sandbox to test platforms enabling Filipinos to trade and invest in select US stocks.
The approval was announced during a launch event on Monday, granting the two firms entry into the SEC’s strategic sandbox, which allows the testing of innovative financial products in a controlled regulatory environment.
“This sandbox framework allows pioneering fintech firms to rigorously test their novel products, services, or business models in a live yet regulated setting. This crucial framework ensures that while innovation thrives, investor protection and market integrity remain at the forefront,” SEC Chairperson Emilio B. Aquino said.
Pluang PH, a partnership between Indonesia-based Pluang and Filinvest Group’s Fdev Digital Innovations and Ventures Inc., will test the Flow mobile app that enables Filipino retail investors to trade US securities listed on the New York Stock Exchange and Nasdaq Stock Market, pre-selected by the company and approved by the SEC.
The company’s sandbox period will last six months, involving up to 1,000 qualified buyers and retail users.
“Users will be able to buy and sell fractionalized US stocks, enabling investments with as little as one dollar,” Mr. Aquino said.
GCash will test its GStocks Global platform within its app, offering simplified access to select US stocks.
The sandbox period will run for 24 months and can accommodate up to 2 million participants.
Mr. Aquino said G-Xchange will partner with online investment platform EasyEquities for the initiative.
“Through its GStocks Global initiative, G-Xchange, Inc. aims to diversify investment options within the GCash app, offering its customers easy, affordable, and seamless access to global stock markets,” he added.
The sandbox testing may conclude with successful completion, early termination by the SEC, or voluntary withdrawal. Upon success, the SEC may approve the platforms for public offering.
Both firms are required to provide the SEC with regular reports on operational progress, testing outcomes, and any issues encountered. — Revin Mikhael D. Ochave
