PSE to Start Trading Gov't Securities in Oct.(Business)
Byline: JAMES A. LOYOLA
The Philippine Stock Exchange (PSE) is launching the trading of Treasury bills and other government securities by next month.
In a memorandum to brokers, PSE president Ernest Leung said the bourse will be holding a seminar and examination for the accreditation of the traders of brokerage houses to trade in government securities.
Only accredited trading participants (brokers) shall be authorized to trade T-Bills, Leung said noting that those already accredited for the trading of small denominated treasury (SDT) bonds need not go through the entire process.
SDT accredited brokerage houses will only have to comply with additional requirements such as attending the government securities seminar. On the other hand, traders already accredtited for SDTs are no longer required to take the comprehensive debt securities examination to qualify.
The PSE government securities seminar will be co-sponsored by Deutsche Bank-AG Manila which is the PSes nominated GSED-Custodian partner for the T-Bills trading.
The PSE had earlier polled its brokers to gauge their interest in the listing and trading of treasury bills at the bourse and get an estimate of the trading volume of the securities.
Brokers participation will be through bidding in the t-bill auctions and through trading said securities at the PSE; either for their own account or on behalf of clients.
In this set-up, brokers bids for auctions on government securities will be coursed through a registered Government Securities Eligible Dealer (GSED-custodian), who shall be acting as the direct registry, custodian, and securities settlement agent for all t-bill transactions executed through the PSE, Cervantes said. …