Primary Market

Government securities are registered and cleared through an automated registry system - Registry of Scripless Securities (RoSS) - administered by the Bureau of the Treasury. Trade settlements are referred to the Bangko Sentral ng Pilipinas (BSP).

No central clearing system is available for corporate bonds. Clearing is done through delivery-versus-payment system between concerned institutions. However, some recent corporate bond issues were settled through the Philippine Central Depository, normally used by the equities market.

Secondary Market

As part of the Fixed Income Exchange Infrastructure development program, the Philippine Securities Settlement Corp. (PSSC) and the Philippine Depository & Trust Corporation (PDTC) were established as subsidiaries of the Philippine Dealing System Holdings Corporation (PDS) in March 2005. PSSC is responsible for matching, clearing and settlement, with PDTC handling depository and custodianship of fixed-income securities and derivatives.

Banks and nonbank financial institutions are required to use third-party custodians for securities sold, borrowed, purchased, traded, or otherwise transacted in the Philippines. (BSP Circular No. 392) Following are the six BSP accredited third-party custodians:

• Bank of the Philippine Islands
• Citibank, N.A.
• Deutsche Bank
• HSBC
• Standard Chartered Bank
• Philippine Depository and Trust Corp.