The Foundation of a New Financial Architecture in the Philippines
Aims and Objectives
The foundation shall aim to create a new financial structure, the Stock Exchange for Small and Medium Enterprises, the Insurance Exchange, and Commodities Exchange.
The foundation shall set foot and embark on a journey to incorporate ideas in the establishment of a new financial system , the Small and Medium Enterprises Stock Exchange, Commodites, and Insurance Exchange, which is equitable and allows the creation of new wealth as well as its redistribution among the population, as well as the regional economies from Luzon, Visayas and Mindanao.
The foundation shall launch financial literacy campaigns for finance professionals, investors and the public in order to provide the market basis for entry of buyers and sellers who should be knowledgeable in the advantages of listing at the Small and Medium Enterprise Exchange, or at least, knowledgeable on the basics of finance and economics.
The foundation shall provide feasibility studies for potential investments in new growth areas from energy production (renewable and non-renewable), infrastructure (construction of roads and bridges, highways and buildings and housing at small and medium-scale), small scale and cooperative mining, to food production (agriculture and fisheries), and new technology programs (latest inventions in line with uplifting the living standards of the population).
The foundation shall support research and studies in the creation of a new financial exchange that will cater to the interest of small and medium enterprises, the bond market for small to medium players as well as alternative investments for institutional or big players, the commodities exchange for small and medium enterprises whereby the price mechanisms are in tune with the world market prices, and the insurance exchange system wherein the issuers of policies can be matched with clients having the right pricing and risk exposure, as well as insurance policies which can be relied on in the event of systemic default, in the pre-need industries, from womb to tomb (health, educational plans, life and non-life policies).
The foundation shall set foot and embark on a journey to incorporate ideas in the establishment of a new financial system , the Small and Medium Enterprises Stock Exchange, Commodites, and Insurance Exchange, which is equitable and allows the creation of new wealth as well as its redistribution among the population, as well as the regional economies from Luzon, Visayas and Mindanao.
The foundation shall launch financial literacy campaigns for finance professionals, investors and the public in order to provide the market basis for entry of buyers and sellers who should be knowledgeable in the advantages of listing at the Small and Medium Enterprise Exchange, or at least, knowledgeable on the basics of finance and economics.
The foundation shall provide feasibility studies for potential investments in new growth areas from energy production (renewable and non-renewable), infrastructure (construction of roads and bridges, highways and buildings and housing at small and medium-scale), small scale and cooperative mining, to food production (agriculture and fisheries), and new technology programs (latest inventions in line with uplifting the living standards of the population).
The foundation shall support research and studies in the creation of a new financial exchange that will cater to the interest of small and medium enterprises, the bond market for small to medium players as well as alternative investments for institutional or big players, the commodities exchange for small and medium enterprises whereby the price mechanisms are in tune with the world market prices, and the insurance exchange system wherein the issuers of policies can be matched with clients having the right pricing and risk exposure, as well as insurance policies which can be relied on in the event of systemic default, in the pre-need industries, from womb to tomb (health, educational plans, life and non-life policies).
The Mechanism of an Exchange System
Generally, an exchange is a mechanism whereby Buyers and Sellers meet to buy and sell goods, services, and its derivatives such as stocks, bonds, and other financial instruments for future settlement.
The Exhange guarantees the settlement or obligation of each party, the Seller, to deliver the goods at agreed time, and the Buyer to pay goods at agreed time. For both parties, the Exchange will secure both obligations, and in the event of default, the Exchange shall pay the penalty to the defaulted party, and the defaulting party penalized by the Exchange.
In this instance, the Exchange shall have the guarantees in place from its members such as marginal deposit, which has to be replenished from time to time, when it declines due to adverse market conditions. This is called the "margin call". The amount has to vary as agreed by the members of the Exchange.
The Exchange is mutually owned by its members, and to enlist a company in the Exchange is a matter done meticulously by its Enlistment and Credit Committee. As a rule from other Exchanges worldwide, it takes at least a minimum of three (3) years before a company is accepted for enlistment, and with a minimum capital requirement. However, this can be waived by the Committee if proper requirements are met in line with goal of assisting Small and Medium Enterprises to enlist in the Exchange through Initial Public Offerings (IPOs).
The Exchange have sets of rules, and these rules have to be mutually agreed by its members.
The Exchange shall use an Electronic Trading Platform (ETP) for settlement of shares issued by its listed companies.
The Exhange guarantees the settlement or obligation of each party, the Seller, to deliver the goods at agreed time, and the Buyer to pay goods at agreed time. For both parties, the Exchange will secure both obligations, and in the event of default, the Exchange shall pay the penalty to the defaulted party, and the defaulting party penalized by the Exchange.
In this instance, the Exchange shall have the guarantees in place from its members such as marginal deposit, which has to be replenished from time to time, when it declines due to adverse market conditions. This is called the "margin call". The amount has to vary as agreed by the members of the Exchange.
The Exchange is mutually owned by its members, and to enlist a company in the Exchange is a matter done meticulously by its Enlistment and Credit Committee. As a rule from other Exchanges worldwide, it takes at least a minimum of three (3) years before a company is accepted for enlistment, and with a minimum capital requirement. However, this can be waived by the Committee if proper requirements are met in line with goal of assisting Small and Medium Enterprises to enlist in the Exchange through Initial Public Offerings (IPOs).
The Exchange have sets of rules, and these rules have to be mutually agreed by its members.
The Exchange shall use an Electronic Trading Platform (ETP) for settlement of shares issued by its listed companies.
