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Initially only Small Denominated Treasury Bonds (SDT-Bonds) are listed at the Exchange and only Certified Debt Securities Traders are allowed to quote, receive and execute orders of clients.
Trading in the Philippine Stock Exchange is in one continuous session daily except Saturdays, Sundays, legal holidays and days when the Bangko Sentral ng Pilipinas (BSP or formerly Central Bank of the Philippines) Clearing Office is closed. Trading of listed Government Securities begins at 9:30 a.m. and end at 11:00 a.m. The Exchange has two trading centers: one in Tektite and another one in Ayala.
Trading of SDT-Bonds shall be in lots of P5,000.00 with no maximum trading lot. The price is quoted as a percentage of its face value up to the sixth decimal place. The most important determinant of bond prices is the prevailing interest rate level. Trading in units lower than the minimum standard unit of trading or the so-called “odd-lot” trading is not allowed.
The method of transaction is a double auction market between a buyer and a seller who are represented by stockbrokers. Stock trading is fully automated and scripless.
Settlement of scripless securities floated by the Republic of the Philippines is on a T+0 Settlement (post-trade). The T+0 book-entry transfer of ownership of listed Government Securities is done at the Bureau of the Treasury through its automated registry system called RoSS (Registry of Scripless Securities). All cash obligations and entitlements are likewise, settled on T+0 with the same settlement banks. Brokers however are required to open and maintain a separate settlement bank account for the purpose of settling the cash element of trades on listed Government Securities. Remittance of Due Clearing obligations to the settlement banks is at 12:30 p.m. on Trade Date. For payment of interest and principal upon maturity, investors and brokers are required to open an account with any of the Bureau of the Treasury’s accredited banks to which said payments will be credited. |