Tim­son Se­cu­ri­ties to take over DW Cap­i­tal

Business World - - Corporate News - Arra B. Fran­cia

STOCK BRO­KER­AGE firm Tim­son Se­cu­ri­ties, Inc. is tak­ing over the op­er­a­tions of DW Cap­i­tal, Inc., af­ter the lat­ter was sus­pected to be trad­ing P2.6 bil­lion worth of se­cu­ri­ties with­out au­thor­ity.

In a mem­o­ran­dum posted Thurs­day, the Philip­pine Stock Ex­change, Inc. (PSE) an­nounced that all cus­tomers of DW Cap­i­tal who have yet to move their ac­counts to an­other trad­ing par­tic­i­pant will ef­fec­tively be trans­ferred to Tim­son Se­cu­ri­ties.

The stock ex­change had ear­lier ad­vised DW Cap­i­tal cus­tomers to trans­fer their ac­counts to an­other trad­ing par­tic­i­pant of their choice through a no­ti­fied af­fi­davit of claim filed with the PSE last May.

“In this re­gard, please be in­formed that ef­fec­tive to­day, all ac­count cus­tomers who did not avail of such op­por­tu­nity will be trans­ferred to Tim­son Se­cu­ri­ties, Inc., as the des­ig­nated suc­ces­sor trad­ing par­tic­i­pant of DWCI,” the PSE said.

The PSE took over DW Cap­i­tal’s op­er­a­tions in De­cem­ber last year, fol­low­ing a res­o­lu­tion is­sued by the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) which cited Rule 33.1(d) of the 2015 Se­cu­ri­ties Reg­u­la­tions Code. The rule per­tained to the pro­tec­tion of cus­tomer ac­counts in case of busi­ness fail­ure of an ex­change trad­ing par­tic­i­pant.

The takeover al­lowed the PSE to take the nec­es­sary ac­tions to pro­tect DW Cap­i­tal’s cus­tomers, in­clud­ing the preser­va­tion of the as­sets, books, and records of the em­bat­tled bro­ker­age firm. The stock ex­change was also given the power to val­i­date its cus­tomer ac­counts and set­tle its li­a­bil­i­ties to cus­tomers.

At the same time, the bro­ker­age was pro­hib­ited from ac­cess­ing the PSE’s trad­ing sys­tem or fa­cil­i­ties.

The SEC started its in­ves­ti­ga­tion on DW Cap­i­tal last Au­gust 2017, act­ing on a com­plaint filed by PSE’s in­de­pen­dent watch­dog Cap­i­tal Mar­kets In­tegrity Corp.

DW Cap­i­tal was al­leged to have en­gaged in the unau­tho­rized trad­ing of se­cu­ri­ties for five ac­counts to­tal­ing P2,599,324,718. The ac­counts were owned by the Gaisano fam­ily, a mem­ber of whom is mar­ried to for­mer DW Cap­i­tal Pres­i­dent Der­win Ngo Wong. —

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