The Money Market Association of the Philippines (MART) met with the Honorable Roberto Tan, Treasurer of the Philippines, last month to share ideas, discuss issues and requests in relation to the fixed income market. Below are the key issues and requests raised during the meeting:

The market is requesting the Bureau of Treasury (BTr) to take a look into accommodating the delivery-versus-payment (DVP) of securities pledged for the IBCL overnight secured borrowings done via PDEx. Currently, cash is delivered same day and paid the following day while securities are transferred the following day and credited back on the third day. Is it possible for the BTr to extend its cut-off time from 1:30 pm to 5:00 pm or a later cut-off, since the IBCL transactions take place from 4:30 pm to 5:30 pm?

  • It was agreed that the release of the quarterly Php auction schedule should ideally be done at least 2 weeks before the start of the quarter;
  • The BTr is seriously considering alternatives or viable back-up plan to the Reuters auction system given the successive ADAPs downtime experienced in the month of September;
  • The request for the original prospectus of Php bonds and treasury bills, as a number of clients are asking for copies of the ROP guarantee, similar to that of the ROP’s, will be referred to Ms. Nanette Diaz. A copy of the latest updated auction rules was also requested;
  • The BTr will look into the request for the publication of data on the breakdown of holders of Php government securities in terms of type of investors – banks, non-bank financial institutions (eg bank trust departments, insurance companies), corporates and retail investors; and onshore vs offshore investors; and
  • The BTr will study the possibility of GOCC’s bidding through the GSEDs, having mentioned that it is part of the BTr’s two forthcoming initiatives, namely (i) the transferability between tax classes; and (ii) strengthening of the dealership obligations and privileges.

DOWNLOAD THE MART LETTER TO BTR BY CLICKING HERE