February 28, 2007
BSP MEMORANDUM NO. M-2007-006
TO | : | All Banks and Other BSP-Supervised Financial Institutions |
SUBJECT | : | Mark-to-Market Valuation of Debt and Equity Securities—Benchmark/Reference Prices |
The Monetary Board in its Resolution No. 177 dated 8 February 2007 hereby promulgates the general guidelines on the mark-to-market valuation of debt and equity securities as required under Circular Nos. 476 and 538, dated 16 February 2005 and 04 August 2006, as amended.
General Principle
As a general rule, to the extent a credible market pricing mechanism as determined by the Bangko Sentral ng Pilipinas (BSP) exists for a given security, that market price shall be the basis of marking-to-market. However, in the absence of a market price, a calculated price shall be used as prescribed in this Memorandum.
Marking-to-Market Guidelines
To ensure consistency, the following shall be used as bases in marking-to-market debt and equity securities:
Type of Security Market Price Basis
A. Equity Securities Listed in the Stock Exchange
1. | Traded in the Philippines | Same day closing price as quoted at the |
Philippine Stock Exchange. In case of halt | ||
trading/suspension or holidays,...
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