The Bankers Association of the Philippines (BAP) and Bloomberg have announced a series of new initiatives aimed at furthering the growth of the FX market in the Philippines.
The BAP has appointed Bloomberg as the new calculation agent for the USD/PHP spot reference rate. The spot reference rate is frequently used as a benchmark by onshore and offshore banks, corporations and asset managers in the Philippines for trade execution, valuation and benchmarking of portfolios.
“We are pleased to partner with Bloomberg to provide enhanced solutions to the FX community in the Philippines,” says BAP’s managing director, Benjamin Castillo. “These new initiatives will support the Bangko Sentral ng Pilipinas’ (BSP) financial market development reforms to better organise and deepen the country’s FX market. We look forward to execution efficiency, increased market liquidity and transparency leveraging Bloomberg’s technology platform and industry best practices.”
Bloomberg will calculate the USD/PHP spot reference rate based on trades carried out by BAP member banks. An accurate representation of the market and each fix will be available as trades are captured across “a deep and broad pool of FX market participants”. Results will be published on BAP’s website, as well as on the Bloomberg Terminal.
As part of the partnership, USD/PHP spot trading will be conducted by BAP member banks on Bloomberg’s FX electronic trading and communication platform, FXGO.
“Bloomberg is excited to extend our ongoing partnership with the Bankers Association of the Philippines by improving transparency and efficiency in the Philippines FX market,” says Andrea Mosconi, Bloomberg’s head of sales, ASEAN. “As the Philippines undergoes economic transformation, we will continue to bring best-in-class technology to advance one of the world’s fastest growing countries.”