September 27, 2013
BSP CIRCULAR NO. 813-13
SUBJECT : Amendment on Market Valuation of Government Securities
Pursuant to Monetary Board Resolution No. 1504 dated 13 September 2013, to further define benchmarks and establish a robust pricing and valuation standard for debt securities, the market valuation of government securities are hereby amended as follows:
SECTION 1. Appendix 33a of the Manual of Regulations for Banks (MORB) and Appendix Q-20a of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) on market valuation of government securities are hereby amended to read as follows:
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"D. Peso-Denominated Government Securities
"The benchmark or reference prices shall be based on the weighted average of done or executed deals in a trading market registered with the SEC. In the absence of done deals, the simple average of all firm bids per benchmark tenor shall be used in calculating the benchmark; Provided, That the simple average of all firm offer per benchmark tenor shall likewise be included as soon as permissible under securities laws and regulations.
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"Other Guidelines
"The basis for the market valuation of non-benchmark...
