July 17, 1997
AMENDED RULES GOVERNING SECONDARY MARKET TRADE OF GOVERNMENT SECURITIES
Pursuant to Section 129 of Republic Act No. 7653, otherwise known as "The New Central Bank Act", mandating the return of fiscal functions by the Bangko Sentral ng Pilipinas to the Department of Finance, the Securities and Exchange Commission, pursuant to the powers vested in it under existing laws, hereby promulgates the following amended rules to govern the secondary market trade of Government Securities: cda
RULE 1. Rationale for the Rules. —
(a) All dealings in securities are impressed with public interest, therefore, should be subject to prudential rules and licensing, such as, uniform calculation formulae and uniform accounting method and system.
(b) Only Securities and Exchange Commission (SEC) licensed dealers can engage in the business of buying and selling securities.
(c) Members of the public can only buy from or sell to licensed dealers.
(d) Dealers must agree to certain conventions or practices to ensure an orderly, efficient, transparent and honest market of securities. These conventions should be articulated in writing and agreed to by prospective and licensed dealers.
(e)...
