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By Maricel E. Burgonio, Reporter
THE local debt market has
improved significantly driven by strong macroeconomic fundamentals
and increased liquidity in the system, the Bangko Sentral ng
Pilipinas (BSP) said.
BSP Deputy Governor Nestor
Espenilla Jr., said the debt market had an average daily volume of
P5.2 billion as of October 18 this year, more than twice than last
year’s P2.5 billion.
“Secondary trading in
government securities was up this year, brought about by strong
macroeconomic fundamentals and the increased liquidity introduced by
the government’s domestic bond exchange program,” Espenilla
said.
This will pave the way for the
introduction of new products particularly securities borrowing and
lending as well as Repos or repurchase agreements to further deepen
the domestic bond market, the BSP official said.
“While less established and
developed than its equities counterpart, our local debt market has
also seen significant improvements and growth,” he said.
Espenilla said investors can now
transact with greater efficiency and transparency and can easily
obtain prices and other information on government securities to
invest in.
To support this growth and
improve transparency, major market infrastructure reforms are being
undertaken such as the operation of the fixed income exchange, he
said.
Improvements in the efficiency of
the trading platform were put in place to allow efficient execution
of orders. These include interconnection of the different phases of
securities trading processes.
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