BSP Expands Access of Unit Investment Trust Funds to BSP Securities in the Primary Market

Effective 30 November 2023, trust entities (TEs) may access the primary market  for the BSP Securities. Under the MB-approved amendments to the regulations, TEs  may now participate in the auction for BSP Securities through their unit investment  trust funds (UITFs).

Expanding the eligible participants in the primary market of BSP Securities  enhances the BSP’s capability to manage liquidity in the system in order to guide  short-term interest rates toward the policy rate. In addition, this will ensure the  tradability and viability of BSP Securities as a highly liquid instrument, thus allowing  for better price discovery and monetary policy transmission.  

Moving forward, the BSP will continue to review the various features of its monetary tools to enhance monetary policy transmission as well as foster the development of the money market through better price discovery.  

WP2Social Auto Publish Powered By :