The Securities and Exchange Commission said it will conduct an investigation on DW Capital Inc. after the brokerage company allegedly engaged in unauthorized trading of securities worth P2.6 billion.
The SEC said in a statement it would make the probe after Capital Markets Integrity Corp., the watchdog unit of the Philippine Stock Exchange, sought the corporate regulator’s nod to take over DWCI.
The SEC in a subpoena ordered DWCI to submit various records that would establish the financial condition of the brokerage firm.
The records include customer master list, stock position report detail per customer, stock and location, portfolio reports, transaction reports, account ledgers, statement of accounts, confirmation invoices and customer account information forms.
The SEC set a hearing on August 29.
SEC sources said officials of DWCI were willing to submit the required documents.
The PSE on August 10 issued a memorandum implementing a preventive suspension on DWCI.
The PSE issued the order after lawyers of DWCI clients asked the CMIC to prohibit DWCI from trading their shares of stock and direct DWCI to preserve the records of transactions.
DWCI clients also complained to the CMIC that shares of stocks had not been delivered to them and demanded the immediate delivery of these securities.
The SEC under the Securities Regulation Code may order an exchange or a self regulatory organization to take over the operation of a failed trading participant to preserve and protect the books, records, customer accounts and trade-related assets.
The CMIC is an SRO and the primary regulator of the trading participants of the PSE.