BTr Set to Undertake Review of Rules on Securities Trading
"We'll be conducting several reviews of the GSED rules and requirements for accreditation," National Treasurer Roberto Tan said. Tan is currently on leave as Department of Finance undersecretary for international finance group.
"Now that I'm full time (as BTr chief) we can focus on the review," Tan added. Up for review are all GSED-related circulars such as accreditation requirements, and which may also include registry, settlement and statement of securities account, trading, among others.
The bureau will issue a new circular updating and revising the accreditation procedures and requirements of securities dealers. GSEDs are licensed banks by the BTr and they submit bids for the government's debt auctions.
Tan said the GSED rules are decades old and there is a need to review the performance of all of the accredited banks. "It's not really a purging but more of a monitoring (of market dealers)."
As early as 2004, the BTr has started a review of GSEDs' accreditation process, possibly to cut down and re-classify the base of eligible government security dealers to improve primary market bid rates and competition.
The BTr qualify the GSEDs as primary dealers based on volume of their awards. But some GSEDs' participation in the market are mere volumes and not "real." These would have to be classified as a new category to weed out the ordinary from primary dealers.
A BTr official said they will also review the requirements of becoming a dealer, such as the size of the institution, which should have large capital. …