|Tenor||PDST-R1 as of 11:15 AM||PDST-R2 as of 04:15 PM|
It is a contractual agreement between two Parties for the purchase and/or sale by a Party of an agreed amount in one Currency against the other.
In the Philippines, two Parties enter into a contractual agreement for the purchase and/or sale by a Party of an agreed amount in US Dollar (USD) against the sale and/or purchase by it to the other Party of an agreed amount in Philippine Peso (PHP). The FX spot transaction is also referred specifically as the US Dollar-Philippine Peso (USD/PHP) spot transaction. The USD is the commodity currency while the PHP is the term currency. This represents the conversion of one (1) US Dollar in terms of Philippine Pesos.
The FX spot market is an interbank market where only universal and commercial banks that are 1) duly authorized by the Bangko Sentral ng Pilipinas and 2) are members of the BAP can participate in the USD/PHP spot trading.3. Who are the FX spot USD/PHP participants?
As of 31 December 2016, the participating member banks are the following:
|BAP Member Banks||Code|
|1||ASIA UNITED BANK CORPORATION||AUBK|
|2||AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED||ANZV|
|3||BANK OF AMERICA, N.A.||BAPH|
|4||BANK OF COMMERCE||BKCP|
|5||BANK OF THE PHILIPPINE ISLANDS||BPIM|
|6||BANK OF TOKYO-MITSUBISHI LTD. – MANILA BRANCH||TMPH|
|7||BDO PRIVATE BANK INC.||PBDO|
|8||BDO UNIBANK, INC.||BDOM|
|9||CHINA BANKING CORPORATION||CBCM|
|10||CTBC BANK (PHILIPPINES) CORP.||CCBM|
|12||DEUTSCHE BANK AG, MANILA BRANCH||DBPH|
|13||DEVELOPMENT BANK OF THE PHILIPPINES||DEVP|
|14||EAST WEST BANKING CORPORATION||EWBC|
|15||ING BANK N.V., MANILA BRANCH||INGB|
|16||JP MORGAN CHASE BANK, N.A. – MANILA BRANCH||JPPH|
|17||KOREA EXCHANGE BANK – MANILA BRANCH||KEBM|
|18||LAND BANK OF THE PHILIPPINES||LBPH|
|19||MAYBANK PHILIPPINES, INC.||MAYB|
|20||METROPOLITAN BANK & TRUST COMPANY||MBML|
|21||MIZUHO BANK LTD. – MANILA BRANCH||MIZM|
|22||PHILIPPINE BANK OF COMMUNICATIONS||PBCM|
|23||PHILIPPINE NATIONAL BANK||PNBM|
|24||PHILIPPINE TRUST COMPANY||PTCO|
|25||PHILIPPINE VETERANS BANK||PVBM|
|26||RIZAL COMMERCIAL BANKING CORPORATION||RCBC|
|27||ROBINSONS BANK CORPORATION||RSBK|
|28||SECURITY BANK CORPORATION||SBMN|
|29||SHINHAN BANK – MANILA BRANCH||SHBM|
|30||STANDARD CHARTERED BANK||SCML|
|31||SUMITOMO MITSUI BANKING CORPORATION||SMBC|
|32||THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED||HBPH|
|33||UNION BANK OF THE PHILIPPINES||UBPH|
|34||UNITED COCONUT PLANTERS BANK||UCPB|
The published FX spot USD/PHP rates are results of the interbank trading which generates the reference rates for the daily conversion of one (1) US Dollar to Philippine Pesos. Since these are interbank bank rates, these are only the basis for the purchase or sale of US Dollars in terms of Philippine Peso for non-FX spot market participant.
The Philippine interest rates are interest rates primarily based on the following:
These are the rates derived from the trading of GS in the secondary market. The Philippine Dealing and Exchange Corp. (PDEx) is an SEC-licensed self-regulatory organization for fixed income securities. GS transactions that are captured and calculated to form a benchmark are fixed income securities dealt only by authorized PDEx trading participants. These benchmarks are referred to PDS Reference Rates.4. What are PDS Reference Treasury Rates?
These are benchmark rates calculated in compliance with BSP Circular No. 813 with subject Amendment on Market Valuation of Government Securities by the BAP-appointed calculating agent pursuant to BSP Memorandum No. M-2007-006 with subject: Mark-to-Market Valuation of Debt and Equity Securities – Benchmark/Reference Prices.
These PDS Reference Rates are referred to as PDST-R1 and PDST-R2. PDST-R1 reference rates are calculated daily every 11:15AM while PDST-R2 reference rates are calculated daily every 4:15PM.
The published PDS reference rates or benchmarks can be used as basis to compute the lending rate of banks; while private bond issuers, on the other hand, may use these reference rates as the basis for the rates of their corporate issuances.
Derivative is any financial instrument which expresses a contractual relationship between two or more parties whose payment is based on or derived (thus the term “derivative”) from some pre-agreed benchmark or underlying instrument.
Generally, these benchmarks or underliers include foreign exchange rates, interest rates, commodity prices or stock indices.
The IRS is a derivative which allows for a contractual agreement between parties to exchange floating rate debt service for a fixed rate debt service.
PHIREF or the Philippine Interbank Reference Rate is the implied Peso interest rate derived from done deals in the interbank foreign exchange swap market. The PHIREF is used as the benchmark for the reset value for the Peso floating leg of an Interest Rate Swap.
PHIREF or the Philippine Interbank Reference Rate is the implied Peso interest rate derived from done deals in the interbank foreign exchange swap market. The PHIREF is used as the benchmark for the reset value for the peso floating leg of an Interest Rate Swap.