The Bankers Association of the Philippines announces that the enhanced PESO interest rate
swap (“PESO IRS”) market is now open to market participants, effective November 18.

This development stems from the release of the updated International Swaps and Derivatives
Association (“ISDA”) definitions on November 15. Among the rates published, the Philippine
Overnight Reference Rate (“ORR”) is included, serving as crucial anchor for the enhanced
PESO IRS market.

“The enhanced PESO IRS market aims to promote development of yield curves to further
support the pricing requirements of short-term credit instruments, such as loans, in the market,”
according to Mr. Paul A. Favila, Chairman of the BAP Open Market Committee. Under this
market, the BAP developed the Philippine ORR, which is based on the Bangko Sentral ng
Pilipinas’ variable overnight repurchase rate.

To promote accessibility to the market, sixteen BAP member-banks will serve as market-makers
that will quote two-way prices for the short- and long-term swaps against the Philippine ORR.

These are:
● BDO
● BPI
● China Bank
● EastWest Bank
● Metrobank
● Philippine National Bank
● Security Bank
● Rizal Commercial Banking Corporation
● Union Bank o
● Australia and New Zealand Banking Group
● Citi
● Deutsche Bank
● HSBC
● ING Bank
● JP Morgan Chase
● Standard Chartered Bank

In addition to these market makers, five banks will serve as regular participants:
● BDO Private Bank
● Maybank
● Mizuho
● MUFG
● SMBC

Bloomberg will serve as the trading platform for the enhanced PESO IRS market. Through
widespread trading among market participants, the BAP believes this would promote the
creation of enhanced benchmarks — leading to the pricing of loans that reflect the needs of the
market.

“Now that the enhanced PESO IRS market has gone live, it is time to work together and ensure
that the reforms we have pursued will fulfill their goals,” Jose Teodoro K. Limcaoco, President of
the BAP, said. “The launch of the enhanced PESO IRS market, together with the creation of a
repo market for government securities, are valuable steps towards growing our Philippine
capital market,” Mr. Limcaoco added.