DragonFi first Philippine broker for global equities via SEC sandbox
The brokerage, a DoubleDragon Corp. unit, will allow investors to access foreign stocks and ETFs through an over-the-counter depositary receipt model under regulatory supervision.
SEC Authorises Global Equity Access
DragonFi Securities Inc. has secured authorisation from the Philippine Securities and Exchange Commission (SEC) to operate within its regulatory sandbox. This makes DragonFi the first broker-dealer in the Philippines permitted to offer local investors access to a curated selection of global equities and exchange-traded funds (ETFs).
The service will utilise an over-the-counter (OTC) depositary receipt model, providing a new avenue for international investment. The SEC's sandbox initiative aims to test innovative financial products in a controlled setting, ensuring market integrity and investor protection.
Domestic Investment Linkage
DragonFi's framework uniquely connects international diversification with participation in the Philippine capital markets. The company stated that global investment limits for users are directly tied to their local investment holdings, fostering growth in the domestic market.
Investors holding certified Philippine assets can allocate up to 50 percent of their value to pre-approved foreign offerings. For those maintaining Personal Equity and Retirement Account (PERA) holdings, this limit extends to 100 percent of the equivalent Philippine investment value.
Asset Protection and CEO Remarks
To safeguard client assets, DragonFi maintains international securities and cash within segregated institutional custody frameworks through arrangements with global financial institutions. Locally, client funds remain strictly segregated and protected with registered, licensed domestic institutions.
Jon Carlo Lim, DragonFi's chief executive officer, described the approval as a significant milestone for both the company and Philippine investors. He noted the model provides Filipinos access to global capital markets through a locally regulated, transparent structure with robust investor protection.
DragonFi will commence phased sandbox testing once the SEC finalises and validates its amended testing plan and client suitability protocols. Initial testing will involve a strictly monitored group before broader user access.
This development introduces a new channel for Philippine investors to diversify portfolios internationally, potentially increasing capital flows both into and out of the domestic market. It also offers an incentive for investors to expand their local Philippine holdings to unlock greater global investment capacity.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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