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RULESANDREGULATIONS
SecuritiesRegulationCode(SRC)

ARTICLEI.GENERALPROVISIONS

SRCImplementingRulesand
Regulations

Section 1. Statement of Objectives. The CMIC shall maintain the highest code of ethics,

RULESOFTHECAPITALMARKETS
INTEGRITYCORPORATION

honor and integrity among its Trading Participants, establish, promote and indicate just and
equitable principles of trade and business, and maintain the highest standards in the commercial
and financial transactions of its Trading Participants among themselves and with the government
andthepublic.

ARTICLEI.GENERALPROVISIONS
ARTICLEII.INVESTIGATIONAND
RESOLUTIONOFCASESBYCMIC
ARTICLEIII.DISPOSITIONOFCASES
ARTICLEIV.EMPLOYEESOF
TRADINGPARTICIPANTS

TheCMICshallmaintaintheintegrityofthemarketandminimizetheriskoftheinvestingpublicby
ensuring that Trading Participants adhere to all rules and code of conduct of the Exchange, the
CMICandallrelatedlegislativeandregulatoryrequirements.

Section 2. Definitions. (a) In these Rules, the following capitalized words and expressions
shall,unlessthecontextrequiresotherwise,havethemeaningsascribedtothemhereunder:

ARTICLEV.CODEOFCONDUCTAND
PROFESSIONALETHICSFOR
TRADERSANDSALESMEN

"AssociatedPerson"shallrefertoapersonwhodirectlyexercisescontrolofsupervisoryauthority,
but does not include a salesman, or an agent or a person whose functions are solely clerical or
ministerial.

ARTICLEVI.CONDUCTREGULATION
OFTRADINGPARTICIPANTS

"Clearing Agency" shall mean a clearing agency duly registered in accordance with the SRC and
SRCRulesanddesignatedbytheExchangeasitsclearingagency.

ARTICLEVII.CUSTOMER
PROTECTION

"CMIC"shallmeantheCapitalMarketsIntegrityCorporation.

ARTICLEVIII.CAPITALIZATION
REQUIREMENTSOFTRADING
PARTICIPANTS

"Code"shallmeantheSecuritiesRegulationCode.
"Commission"shallmeantheSecuritiesandExchangeCommissionofthePhilippines.
"Complaint"shallmeananywrittenstatementofacustomeroranyotherinterestedpartyalleginga

ARTICLEIX.BOOKSANDRECORDS
RULE

grievanceinvolvingthebusinessofaTradingParticipantorIssueroraviolationoftheSecurities
LawsbyaTradingParticipantorIssuer.

ARTICLEX.RULESONSUSPENSION
OFTRADINGOPERATIONS

"Days"shallmeantradingdaysintheExchange.

ARTICLEXI.TRADING
IRREGULARITIES

"DD"shallmeantheDisclosureDepartmentoftheExchange.

ARTICLEXII.DISCIPLINARY
GUIDELINESANDSANCTIONS
ARTICLEXIII.MISCELLANEOUS
POLICIES

OTHERRULESANDREGULATIONS:
PSETradingRules
RulesonEstablishingand
MaintainingBranchesand/or
AgenciesofTradingParticipants
PSERulesonDirectMarketAccess
(DMA)

TogetacopyoftheRulesandRegulations,pleasegetin
touchwiththeSecretariat.

"DoneThroughAccount"shallmeananaccountwhichaTradingParticipantmaintainswithanother
TradingParticipantandusestoeffecttransactionsforitscustomersortheproprietaryaccountof
theTradingParticipant
"Examination Findings" shall mean any violation of the Securities Laws and these Rules as
determinedduringanexaminationconductedbyCMIC.
"Examinee"shallmeanaTradingParticipantunderexaminationorinvestigationbyCMIC.
"Exchange"or"PSE"shallmeanthePhilippineStockExchange,Inc.
"Issuers"shallmeanthecompanieswhosesecuritiesarelistedintheExchange.
"ITD"shallmeantheInformationTechnologyDivisionoftheExchange.
"LD"shallmeantheListingDepartmentoftheExchange.
"Risk Based Capital Adequacy Ratio" or "RBCA Ratio" shall refer to the minimum level of capital
thathastobemaintainedbyfirmswhicharelicensed,orsecuringaBrokerDealerlicense,taking
into consideration the firm size, complexity and business risk. Such risks that are considered in
determining the capital requirement include, among others, operational, position, counterparty,
largeexposure,underwriting,andmarginfinancingrisks.
"Rules"shallmeantheCMICRules.
"Securities Laws" shall mean the Securities Regulation Code ("SRC"), its implementing rules and
regulations (the "SRC Rules"), and the rules (including these Rules), circulars, directives and/or
other issuances of the Commission, PSE or CMIC to govern Trading Participants, Issuers and
othermarketparticipants.
"Secured Demand Note Agreement" shall mean a notarized agreement (including the related
secured demand note) entered into by a Broker Dealer as borrower and a lender, evidencing or
governing the contribution of a secured demand note to a Broker Dealer and the pledge of
securities and/or cash with the Broker Dealer as collateral to secure payment of such secured
demandnote.
"SIPF"shallmeanthefundundertheSecuritiesInvestorsProtectionFund,Inc.
"Subordination Agreement" shall mean either a subordinated loan agreement or a secured
demandnoteagreement.

demandnoteagreement.
"Subordinated Loan Agreement" shall mean a notarized agreement evidencing or governing a
subordinatedborrowingofcash.
"Trading Halt" shall mean the temporary stoppage of the trading of a listed security in the
Exchange.
"Trading Participants" shall mean brokers and/or dealers duly licensed by the Commission and
authorizedtoexerciseaTradingRightpursuanttotherulesoftheExchange.Unlessthecontext
requires otherwise, the term shall include directors, officers, Associated Persons, Salesmen and
otheragentsofTradingParticipants.
"Tradingrelated Irregularities" shall mean any violation of Sections 24, 25, 26 and 27 of the
Securities Regulation Code and their implementing rules and regulations (including SRC Rules
24.1(b)1, 24.1(d), 24.2.2, 24.23, and 26.3), and Article XIB of these Rules, including, but not
limitedto,manipulativeandfraudulentpracticesandinsidertrading.
"UnusualTradingActivities"shallmeananyabnormalmovementinthepriceand/ortradingvolume
in the market of a listed security as may reasonably give rise to suspicion of a Tradingrelated
Irregularity.
Unlessthecontextrequiresotherwiseorunlessotherwisedefinedherein,thetermsusedinthese
rules shall have the same meanings under the Securities Regulation Code and its implementing
rulesandregulationsorotherrelevantrulesoftheExchange.

Section3.EnforcementandObservanceoftheSecuritiesLaws. CMIC shall enforce

compliance by Trading Participants and, in the proper case, by Issuers with the Securities Laws.
TradingParticipantsshallbeboundbyandobservethefollowinglaws,rulesandregulationswhich,
exceptfortheseRules,areincorporatedasintegralpartshereofbyreference:
(a)TheSecuritiesRegulationCodeanditsimplementingrulesandregulations
(b)TheAntiMoneyLaunderingLawanditsimplementingrulesandregulations
(c)TheCodeofConductandProfessionalEthicsforTradersandSalesmen
(d)TheseRulesand
(e)Suchotherrelevantlawsandregulations.

Section 4. Official Publications. A Trading Participant shall state in its business letters,
noticesandotherofficialpublicationsordocumentsthatitisatradingparticipantofThePhilippine
StockExchange,Inc.,amemberofSCCPandoftheSIPF.

Section5.ReportingObligationofTradingParticipants.EveryTradingParticipantshall
prepareandfilewiththeCMICsuchperiodic,specialorotherreports,whichtheSecuritiesLaws,
theCommissionortheCMICrequires.
Every Trading Participant shall also prepare and file with CMIC, in such form and substance and
withintheperiodmandatedbyCMIC,suchreportsandotherdocuments,whichCMICmayordera
TradingParticipanttoprepareandfiletoenforcecompliancewiththeSecuritiesLaws.

Section 6. Reports to be Verified Under Oath. Risk Based Capital Adequacy (RBCA)
reports which a Trading Participant should prepare and file with CMIC under these Rules or the
SecuritiesLawsshallbeverifiedunderoathandsignedbythePresidentortheequivalentofficer
andtheAssociatedPersonincaseoffinancialreportsanddocuments,theChiefFinancialOfficer
ortheequivalentofficer(the"ExecutingOfficers")oftheTradingParticipant.Theverificationshall
statethat:
(a) TheExecutingOfficershavereadtherelevantreportordocument
(b) Based on the Executing Officers' personal knowledge or based on authentic
records,thestatementsinthereportordocumentaretrueandcorrect
(c) Thereportordocumentdoesnotcontainanyuntruestatementofamaterialfact
oromittostateamaterialfactnecessaryinordertomakethestatementsmade,
in the light of the circumstances under which such statements were made, not
misleadingand
(d) Based on the Executing Officers' personal knowledge or based on authentic
records, the financial statements, and other financial information included in the
report or document, fairly present in all material respects the financial condition
andresultsofoperationsoftheTradingParticipant.

Section7.Continuing Liability. Subject to the relevant prescriptive period under the Code
and other applicable laws, a Trading Participant shall not be relieved from any liability incurred
whilestillinoperationorbeexcusedfromtheobligationstocooperateinaninvestigationevenifit
may cease to be registered or be stricken off the register by the Exchange for any reason
whatsoever.TheTradingParticipantshallcontinuetobeboundbytheseRulesandtheSecurities
LawswithrespecttoanyantecedentviolationthereofbytheTradingParticipant.

CAREERS@CMIC

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