By James A.Loyola
The Philippine Dealing & Exchange Corp. (PDEX), the Bankers Association of Philippines (BAP) and Bloomberg have teamed up to launch several initiatives aimed at advancing the peso bond market in the Philippines.
PDEX, the fixed income market operator, has appointed Bloomberg as the technology partner for the electronic trading and surveillance system for the government and corporate bonds traded in its market, using the regulatory oversight features of the Bloomberg E-Bond platform.
Bloomberg is also the calculation agent for peso government bond benchmarks administered by The Bankers’ Association of Philippines (BAP). Bloomberg’s evaluated pricing service (BVAL), based on market quotes and traded prices, will be used for end-of-day reference prices.
The US$107-billion bond market in the Philippines has seen steady growth of between three to five percent for the last three years, according to data from Bloomberg and the Asian Development Bank.
These initiatives will support the domestic debt market reforms laid out by the Bangko Sentral ng Pilipinas, Bureau of the Treasury and the Securities and Exchange Commission.
“We at the PDS Group are certain that this new partnership with Bloomberg will bring benefits to the stakeholders of the SEC-registered marketplace, our trading participants and issuers,” said PDEX President Antonino A. Nakpil.
He added that, “this transition shall allow our community to capitalize on Bloomberg’s strength in fixed income markets and increase awareness of PHP-denominated government securities and corporate bonds, among global fixed income market professionals.”
The Bloomberg E-Bond platform offers market participants a robust and flexible set of tools to support the full trade workflow. This includes pre-trade price discovery and analytical tools, the ability to support multi-dealer request-for-quote (RFQ), firm order and capture of voice trades, as well as providing integrated reporting tools.
The platform will also be connected to the Bureau of Treasury and PDEX’s settlement systems to facilitate straight-through-processing of all bond trades. In addition, market oversight entities and regulators can review market activity and audit transactions in real-time.