Circular No. 1207: Amendments to MORB and MORNBI on Bangko Sentral Issued Securities Eligible Counterparties

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR

CIRCULAR NO. 1207 Series of 2025

Subject: Amendments to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to Bangko Sentral Issued Securities’ Eligible Counterparties -- Trust Entities thru Investment Management Accounts

The Monetary Board, in its Resolution No. 1486 dated 23 December 2024, approved the following amendments to the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBI) pertaining to the participation of trust entities thru investment management accounts to access the Bangko Sentral Issued Securities’ market.

Section 1. Sections 601/601-Q of the MORB/MORNBI on Monetary Operations as amended by Circular Nos. 1157 dated 14 October 2022, 1179 dated 1 September 2023 and 1183 dated 24 November 2023 are further amended to read, as follows:

601/601-Q Monetary Operations

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The Bangko Sentral Issued Securities (Bills and Bonds). The issuance of Bangko Sentral Securities is a part of the monetary operations of the Bangko Sentral to manage short-term liquidity in the financial system and guide market interest rates. Bangko Sentral Securities are available to all Bangko Sentral counterparties, namely banks (UBs/KBs, digital banks and TBs), QBs, and trust entities. Provided, That, in the case of trust entities, only unit investment trust funds and investment management accounts may be invested in Bangko Sentral Securities. The Bangko Sentral Bills and Bonds shall be subject to the following terms and conditions:

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h. Secondary market trading. Issued Bangko Sentral Securities shall be available for trading in the secondary market and shall be done on the trading platform operated by the Philippine Dealing and Exchange Corporation (PDEx). Banks (UBs/KBs, digital banks and TBs), QBs, and trust entities are eligible participants of Bangko Sentral Securities in the secondary market, subject to the rules and guidelines issued by the Bangko Sentral. Provided, That, in the case of trust entities, only unit investment trust funds and investment management accounts may be invested in Bangko Sentral Securities. The trading and Settlement Window/Timeline

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Section 2. This Circular shall take effect immediately upon its publication either in the Official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

[Signature] ELI M. REMOLONA, JR. Governor

15 January 2025