Philippine Bond Bourse to Start Forward Contracts in Reform Push

  • Regulator has approved mechanism to be run by bond exchange
  • Program to manage interest-rate risks may begin in February
Lock
This article is for subscribers only.

Philippine regulators have given the green light for market-structure services firm PDS Group to offer trading of government bond forward contracts as the nation works to deepen its capital market.

A market framework and infrastructure for the instruments was approved by the country’s Securities and Exchange Commission on Jan. 2, said Antonino Nakpil, president of Philippine Dealing & Exchange Corp. PDEx, the trading-services arm of PDS, operates Manila’s bond exchange and will run the new mechanism.