PBBM leads PSE bell ringing to welcome Day 1 of CMEPA law

For the first time since he assumed office as Philippine President in June 2022, His Excellency Ferdinand R. Marcos Jr. rang the opening bell at the Philippine Stock Exchange on July 1, 2025. The bell ringing ceremony was hosted by PSE to mark the effectivity of Republic Act No. 12214 or the Capital Markets Efficiency Promotion Act (CMEPA), which brings down the stock transaction tax from 0.6 percent to 0.1 percent.

In his welcome remarks, PSE President and CEO Ramon S. Monzon mentioned that technology has enabled investors to access global stock markets and can now trade in markets where they can find attractive returns, manage risks, and trade with a minimum of friction costs. He further stated that while the PSE meets two of these investment criteria, it had the highest friction cost among the ASEAN-6 Exchanges with a stock transaction tax (STT) of 0.6 percent and a minimum broker commission of 0.25 percent each for a buy and sell trade. The minimum commission that stockbrokers may charge their customers was removed by SEC last April 2024. “Today, thanks to CMEPA, all trades at PSE will be subject to an STT of only 0.1 percent from 0.6 percent, finally making us competitive with our regional peers in terms of friction costs.”

Mr. Monzon also expressed PSE’s appreciation to President Bongbong Marcos for the legacy that he will leave on the Philippine capital market with his approval of CMEPA.

Aside from the outright reduction in STT, another provision in the CMEPA that is relevant to PSE is the expansion of the scope of STT to include other securities listed and traded through the exchange.

For his part, President Marcos highlighted in his Keynote Message the benefits of CMEPA for the nation and Filipino investors. “From now until the year 2030, CMEPA is projected to generate over Php 25 billion in net revenue — a substantial sum that can help fund the building of roads, bridges, hospitals, schools, and other social safety net programs as well. But beyond revenue, CMEPA reinforces confidence, it shows that the future system is becoming more equitable and structured. It shows that stability, reform, and inclusivity for all — of and for the professionals, for the stock traders, it is for every Filipino who dreams of better financial security. It empowers the small business owner, the young professional and the ambitious Filipino worker who dreams not only of progress, but of building a better future.”

In attendance at the bell ringing event were Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick D. Go, Department of Finance (DOF) Secretary Ralph G. Recto, Senator Sherwin T. Gatchalian, Securities and Exchange Commission (SEC) Chairman Emilio B. Aquino, heads of select publicly listed companies, and members of the PSE Board of Directors and Management Committee.