The Philippines Securities and Exchange Commission (SEC) is pushing to expand the government securities repo market, aiming to boost liquidity and deepen the country’s capital markets.
The SEC, which took direct oversight of the market in 2020, is looking to broaden participation beyond GS Eligible Dealers to include nonbank financial institutions, responding to growing interest in repo transactions, chair Emilio Aquino said.
“The repo market is envisioned to support market-making activities of government securities dealers in the country,” Aquino said. “Expanding this market provides us with another opportunity to improve liquidity, manage short-term funding, and boost overall market activity.”
The SEC has also supported industry calls for broader documentary stamp tax exemptions for derivative market players, amending previous tax rules and reinforcing the framework for repo transactions under the Global Master Repurchase Agreement (GMRA).
The regulator is also working to identify a suitable self-regulatory organization for the Philippine repo market to ensure its continued stability and expansion.