The Bangko Sentral ng Pilipinas (BSP) and the Bureau of the Treasury (BTr) signed the Memorandum of Agreement (MOA) for the linkage of the BSP’s Monetary Operations System (MOS) and the BTr’s National Registry of Scripless Securities (NRoSS) on 1 July 2020. The signatories were BSP Governor Benjamin E. Diokno and Treasurer of the Philippines Rosalia V. De Leon. The Department of Finance (DOF) Secretary Carlos G. Dominguez was also present during the MOA signing.
The connectivity of the BSP’s MOS to the BTr’s NRoSS is an integral part of the process for the issuance of BSP Securities. The MOS is a web-based electronic platform that enables counterparties to participate in the BSP’s peso liquidity facilities. The NRoSS is an electronic registry system for government securities (GS) and facilitates the settlement and recording of transfers of GS through an established interface with the trading platform for secondary market trades and the BSP’s Philippine Payment and Settlement System (PhilPaSS).
The MOS-NRoSS linkage will facilitate the seamless process of the auction of BSP-issued securities and the registry and recording of these securities to enable primary market issuance and secondary market trading.
The issuance of the BSP Securities is an additional instrument in the implementation of monetary policy under the Interest Rate Corridor (IRC) framework. The use of BSP Securities for liquidity management likewise supports the BSP’s initiative to shift to more market-based monetary operations and allows the BSP to conduct its monetary operations in line with international central banking practice.
The initial issuance of the BSP Securities is set within the third quarter of 2020, once all the requirements to support the issuance are in place.
Source: Bangko Sentral ng Pilipinas (BSP)