PSE approves Short selling for HUGE corporations only!

Was surfing PSE when this news article caught my eye (see below). This
means that when the market eventually goes down, or when individual
stocks go down, you can NOW earn if you know what you're doing.
Caveat:the rules are stringent and you can only short companies with
10BILLION Market Cap (means BIG companies). how many in the small PSE
market fit that bill? PLDT? Manulife?

Meaning they're saying that you can only short (expect the price to go
down) companies that are trying hard to keep their prices up.

What?

Nevertheless, this is a welcome rule/development. In this land of brides
and under the tables (why are those pirated DVD stands still there?)
-it's only a matter of time when you can SHORT any stock!

Options must be next.

The complete article for you bookworms (read: savvy investors)

19 July 2007
News Release
Refer to: Joel Gaborni
(632) 688-7583
PSE approves rules on short selling
THE PHILIPPINE STOCK EXCHANGE (PSE) has proposed a revised set of
stringent rules on short selling as part of a program to add more
sophistication to the local stock market and attract more investments,
while minimizing the risks involved in short selling.
Mr. Francis Lim, PSE president and chief executive officer, said the
PSE's board has approved recently the revised set of short-selling rules
and has submitted it to the Securities and Exchange Commission (SEC) for
final approval.

"With the short-selling rules in place, investors may make money, or
they can protect their investments, even when our market is retreating,"
Mr. Lim said.

Short selling refers to the sale of any security that the seller does
not own, or to a sale that will be settled by the delivery of borrowed
securities.

A good example of a short sale occurs when a person sells at a higher
price a stock that he does not own and later buys from another at a
lower price the same stock for delivery to the buyer who earlier bought
at a higher price. The difference between the higher selling price and
the lower buying price represents the profit of the short-seller.
"This is the essence of short selling, which appeals to investors who
love to hedge their positions in the stock market," Mr. Lim said. "But
we have to put in place the short-selling rules for the smooth conduct
of these transactions."

Mr. Lim added that the proposed short-selling rules, once approved by
the SEC, will complement the earlier set of rules governing the PSE's
Securities Borrowing and Lending (SBL) program. The SBL rules, which are
related to short selling, are now in effect.
"The short-selling rules, together with the securities lending program,
will definitely increase the value turnover of our equities market. The
initiative is part and parcel of the PSE program to improve the average
daily value turnover of our stock market, which still pales in
comparison with our stock markets in the region," Mr. Lim added.

The PSE's proposed short-selling rules will govern short-selling
transactions that involve PSE trading participants, whether the
transactions are for the account of the trading participants or for
their clients.

Under the proposed rules, no director, officer or principal stockholder
of a listed corporation shall make a short sale in securities of the
listed corporation in which he or she is a director, officer or
principal stockholder.

The proposed rules authorize the PSE, upon due notice to the SEC, to
restrict or prohibit short selling indefinitely or for such period of
time as it may deem necessary or advisable for the protection of
investors and for maintaining an orderly market.
The proposed set of rules requires a trading participant who engages in
short-selling activities to maintain ledgers (whether in manual or
electronic form), which shall record full and complete details of all
the trading participant's short-selling transactions. The proposed
guidelines require the PSE to make available in its web site all daily
short-selling activities at the close of each trading day.

It also requires all short-sale transactions to be executed in
accordance with the so-called "up tick rule." Under the up tick rule, no
trading participant shall use the facility of the Exchange to effect a
short sale of any security unless the transaction is done at a price
that is higher than the last sale price. A short sale can be done at a
price of the last sale but only if that price is above the next
preceding different sale on such day.

Under the proposed rules, only securities included in a list of
qualified securities and stocks shall be eligible for short selling. The
proposed rules authorize the PSE to determine the composition of this
list, subject to certain criteria.
The criteria include a P10-billion minimum market capitalization and a
100-percent tradability, excluding block sales, during the immediately
preceding six months prior to the date of approval of the list.