Repo market launch set on Nov. 27

FILE: Nestor Espenilla Jr. (Photo By Bangko Sentral ng Pilipinas, CC BY-SA 4.0)

MANILA — The Securities and Exchange Commission (SEC) has approved the self-regulatory organization (SRO) for the planned repo market, eyed for implementation in the next 18 months.

Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. told reporters Monday that monetary officials “were just informed” that SEC approved the SRO last week.

SRO is a private group to be approved by SEC to monitor the implementation of the reforms set for the development of the local debt market.

Reforms in the local repo, or repurchase agreement, market is seen to support the government’s infrastructure program since this would allow for a more resilient debt market and provide for longer-term funding.

Under the program, Espenilla said SEC has been tasked for the approval of the SRO, BSP to ensure that players meet the reserve requirements and the Bureau of the Treasury (BTr) will provide the inter-dealer rules.

“These are the pieces coming into play. All of these come together when we launch (the program) on November 27,” he said.
Meanwhile, National Treasurer Rosalia de Leon told reporters after the rate setting auction of the government’s 20th Retail Treasury Bond (RTB) Monday that rules for the implementation of the repo market has been ironed out.

She said the Bureau of the Internal Revenue has issued a RMC (Revenue Memorandum Circular for the repo.)

“On the 27th we will see the Repo trade,” she added.