WRONG “BIG FIGURE” PRICE QUOTATION

Wrong “Big Figure” or “big fig” price quotation is defined in the trading markets as follows:

a) USD/PhP Foreign Exchange Spot as PhP 1.00 off the current spot price

e.g.
USD/PhP Spot Bid Price
USD/PhP 44.10

Erroneous Quotation
USD/PhP 43.10

Wrong “Big Fig”
43.00

b) USD/PhP Foreign Exchange Forward and Swap as 100 swap points off the current forward points

e.g.
USD/PhP Swap 1yr Bid Points
1.60

Erroneous Quotation
2.60

Wrong “Big Fig”
2.00

c) PhP denominated fixed income bonds as 100 basis points off the yield

e.g.
PhP 5-Year Bid
5.50%

Erroneous Quotation
4.10%

Wrong “Big Fig”
4.00%

d) USD denominated fixed income bonds as 1 point off the price

e.g.
USD ROP 5-Year Bid
127.75

Erroneous Quotation
128.25

Wrong “Big Fig”
8.00
e) Money Market transactions as 100 basis points off the yield

e.g.
PhP overnight borrowing bid
4.25%

Erroneous Quotation
5.25%

Wrong “Big Fig”
5.00%

f) PhP Interest Rate Swaps as 100 basis points off the yield

e.g.
USD/PhP swap 5-year bid
4.925%

Erroneous Quotation
5.925%

Wrong “Big Fig”
5.000%

g) USD/PhP FX Currency Options as 1 point off the volatility price

e.g.
USD/PhP FX one-month bid
1.625%

Erroneous Quotation
2.625%

Wrong “Big Fig”
2.000%

Dealers should not take advantage of obvious erroneous price quotations. If a price with an erroneous “big fig” is hit using a trading system, the deal shall be cancelled. Both the quoting dealer and aggressor dealer shall honor and transact at the price with the correct “big fig”.

For prices quoted outside a trading system, the aggressor dealer will have to ask the broker or the quoting dealer at least once to counter check if the price quoted has the correct “big fig”. If the broker or quoting dealer replies with the same price, the aggressor dealer can deal on that price and such will be honored by all parties. Dealers should be responsible enough to know the prevailing market price and must always be conscious of their price quotations especially after being given ample warning by the aggressor dealer.