Amendment on Market Valuation of Government Securities

September 27, 2013BSP CIRCULAR NO. 813-13SUBJECT : Amendment on Market Valuation of Government SecuritiesPursuant 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:"xxx xxx xxx"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."xxx xxx xxx"Other Guidelines"The basis for the market valuation of non-benchmark...