Capital market reforms to be launched in November
The government will launch in November the peso debt market development roadmap aimed at establishing an integrated financial market in the country.
“The capital market reform agenda will initially focus on benchmark markets. The reforms will be undertaken over an 18-month time frame from launch in November with specific targets for regulatory and institutional milestones. Deliberately, we sequenced and calibrated the roadmap to ensure that urgent and foundational issues are prioritized,” Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. said in a speech at the joint general assembly of the Money Market Association of the Philippines, ACI Financial Markets Association Philippines, Trust Officers Association of the Philippines, Fund Managers Association of the Philippines, Investment House Association of the Philippines and National Association of Securities Broker Salesmen Inc.
Espenilla said the capital market reform roadmap was specifically aimed at increasing the volume of treasury bills; providing stable, predictable and transparent issuance of government securities, and developing a systematic set of obligations, rights and incentives for market-makers.
Also among the initiatives included establishing a reliable yield curve, introducing a repo program and strengthening regulatory oversight over the repo and fixed income market, Espenilla added.
Last month, Espenilla said the roadmap would have three major operational priorities, the first of which was to deepen the local bond market by adopting reforms in the government securities eligible dealer (GSED) system, increase supply of short-term securities and develop an effective regulatory framework on derivatives and repo markets.
It will also create a reliable financial benchmark as well as valuation of financial instruments, Espenilla said. Lastly, the roadmap would establish an integrated financial market infrastructure that “will promote price discovery, transparency and orderly trading clearing and settlement of a full range of financial transactions.” —BEN O. DE VERA
