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. — Arra B. Francia