MANILA -Major domestic and international banks can now undertake transactions using a new dollar-peso cross currency swap market that was recently rolled out by the Bankers Association of the Philippines (BAP).
BAP said in a statement that market makers include BDO Unibank Inc., Bank of the Philippine Islands, Metropolitan Bank & Trust Co., Philippine National Bank, Security Bank, Citibank, Deutsche Bank, HSBC, ING Bank, JP Morgan and Standard Chartered.
Moreover, lenders who signed up as regular participants were China Bank, Rizal Commercial Banking Corp., Robinsons Bank, Union Bank of the Philippines, Mizuho and MUFG Bank.
The currency swaps will allow banks and clients to mitigate risks associated with foreign debts and other transactions.
The dollar-peso cross currency swap market will be supported by the fixed-income trading platform of Bloomberg, the US-based financial technology and media giant. This means trading is only allowed for qualified participants and subscribers of Bloomberg.
This project was led by the BAP’s open market committee, which has been working on the program since last year.
It is one of the major projects being implemented under the term of BAP president Jose Teodoro “TG” Limcaoco, who was named chief of the influential banker’s organization last March. The BSP said in a statement the initiative will allow its members to better manage foreign exchange and interest rate risks. INQ