Authorizing an Operating Stock Exchange to Transact Orders Through Members of Other Operating Stock Exchanges

August 30, 1973

PRESIDENTIAL DECREE NO. 282

AUTHORIZING STOCK TRANSACTIONS BY MEMBERS OF AN OPERATING STOCK EXCHANGE THROUGH MEMBERS OF ANY OTHER OPERATING STOCK EXCHANGES WHEN NECESSARY TO EXECUTE CUSTOMERS' ORDERS

WHEREAS, the purchase and sale of sizable block of securities require time if done only in one stock exchange, particularly if the market is not bullish. Moreover, it tends to weaken the price of the security;

WHEREAS, the best interest of the seller and the buyer of securities will be served if more than one broker handle the transaction if the same is carried out in any or all the operating stock exchanges; and

WHEREAS, to infuse more interest among investors in the stock market and help create a healthier investment climate, it is necessary that transactions affecting listed securities be spread out among as many people as could handle the same profitably with a view to promoting an active market and not dampen it. cdt

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby order and decree as part of the law of the land, the following:

SECTION 1. Any provision of law or decree to the contrary notwithstanding, any and all brokers of an operating stock exchange are hereby authorized to transact and/or execute orders through members of any other operating stock exchanges when necessary in the interest of customers, pursuant to such terms and conditions as may be mutually agreed upon between the executing brokers, provided, that the customer shall not pay more than the authorized commission, and an appropriate report on the matter is submitted to the Securities and Exchange Commission.

SECTION 2. The Securities and Exchange Commission is hereby authorized to promulgate such rules and regulations as may be necessary to implement this Decree, and to impose fines, suspension or revocation of license of the guilty party for any violation thereof, as provided under existing laws.

SECTION 3. Any and all laws, decrees, rules or regulations contrary to, or in conflict with, any provisions of this Decree are hereby repealed or modified accordingly.

SECTION 4. This Decree shall take effect immediately.

DONE in the City of Manila, this 30th day of August, in the year of Our Lord, Nineteen Hundred and Seventy-Three.