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XIII. Confirmation
  1. All Fixing Banks shall ensure that the mapped transactions accurately correspond to the details of the actual transaction.
  2. All transactions not dealt through the designated trading system shall be mapped within ten minutes.
  3. Mapping of done deals should be done on trade date and not on value date except for deals done during the afternoon trading session in which case, mapping of trade is to be done before 9:30am the next business day.

XIV. Settlement
  1. Standard settlement for government securities is T+1.
  2. Deviation from the standard is, however, allowed if proper pre-disclosures were made and agreed upon by both parties.
  3. Standard cash settlement is through the BSP DDA unless otherwise disclosed and agreed upon.

XV. Computation Of Benchmark Prices
Daily benchmark pricing shall be computed to establish a standard by which trading securities will be revalued. Benchmark prices shall be determined by:
  1. 1. The weighted average of all done deals;
  2. A structured mid rate based on the best bid and offer for the benchmark in the absence of done deals for a particular tenor;
  3. If a structured mid rate cannot be established due to an absence of offers, then the average of the best 60% of all bids for the benchmark will be used.

XVI. Officer Of The Week
The Officer of the Week shall come from among the Fixing Banks and shall be responsible for ensuring compliance and enforcement of these rules.

Duties and Responsibilities:
  1. Ensure that all fixing banks price all On-the-Run issues.
  2. Ensure that all the fixing banks adhere to the maximum variance over the best bids.
  3. Inform all other Fixing Banks of any system breakdown of any Fixing Bank.
  4. Validate fixing computations and submit MART1 for publication.
  5. Coordinate contingency measures in case of system wide breakdown.
  6. Act as arbitrator in the resolution of minor disputes.
  7. Elevate major disputes to the MART Arbitration Committee as necessary.

XVII. Failed Settlement And Due Compensation
As a general principle, Fixing Banks will, at all times, endeavor to settle any and all issues that may arise from a failed settlement amicably among themselves. An amicable settlement of disputes arising from failed trades is encouraged. Such settlement shall not be limited to but may include cancellation of the transaction. In general, individual bank policies for credit risk shall apply. In the event Participants concerned cannot reach a compromise, the following shall serve as guide to resolve disputes arising from failed settlements.

a. Failed Settlement - Securities undelivered, Cash delivered: If the seller fails to deliver the required securities and has received payment for good value, compensation to the buyer will follow the replacement concept. Thus, if the seller is unable to deliver the securities, the seller shall pay the buyer the difference between the original net settlement price on trade date and the net settlement price based on the day's MTM value if the MTM value is higher. If the MTM net settlement price is less than that computed on trade date, no additional compensation shall be required. MTM value to be used will be MART1 on value date.

b. Failed Settlement - Cash undelivered, Securities delivered: If the buyer fails to deliver payment for securities of which he has received good value, the buyer shall compensate the seller for reasonable cost of funds.

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