PHILIPPINE financial markets could face some volatility from the fallout of former president Rodrigo Duterte's having been arrested and sent to the International Criminal Court for alleged crimes against humanity, a former Bangko Sentral ng Pilipinas (BSP) official said on Wednesday.

Speaking to the reporters at the sidelines of a Management Association of the Philippines economic briefing, GlobalSource Partners analyst and former BSP deputy governor Diwa Guinigundo said the short-term market reaction would be negative, but the country's long-term economic prospects could improve given the view that the rule of law had strengthened.