Palacio del Gobernador
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HANDBILL ON ELIGIBILITY TO BID FOR GOVERNMENT
SECURITIES IN THE PRIMARY MARKET
I. Criteria for eligibility to participate
in the auction
Only financial institutions
licensed by Bangko Sentral ng Pilipinas (BSP),
the Insurance Commission (IC) or the Securities
and Exchange Commission (SEC) whose Articles
of Incorporation includes dealing (buy and
sell) in securities as a primary or secondary
function, shall be eligible to participate
in the primary sale of Government Securities
by the Department of Finance through the Auction
- P100 Million unimpaired
capital and surplus account;
- Compliance with statutory ratio as certified
by licensing government agency
Deposit Account with Bangko
Sentral ng Pilipinas (BSP) or Land Bank of
the Philippines (LBP) for the settlement of
the securities purchased / awarded
II. Documentation Requirements
- Signed Autodebit/Autocredit Authorization for the Bureau of
Treasury (BTr) to debit/credit applicant’s settlement
account with BSP or LBP for the settlement of the securities
purchased/awarded, secondary trades and payment of monthly fees.
- Duly signed and notarized Convention for Electronic Auction
of Government Securities and Oath of Undertaking for the Registry
of Scripless Securities
- Certified list of authorized signatories with specimen signatures,
for the the Autodebit/Autocredit Authorization, Convention,
Tenders with Board Resolution.
- Securities and Exchange Commission (SEC) registration / license
as dealer in government securities.
III. Infrastructure Requirements
- Registration with the Registry of Scripless Securities (RoSS)
operated and maintained by the BTr.
- Installation of Moneyline Telerate terminal for bid submissions
to BTr and receipt of awards.
- Request the concerned licensing government agency for the
certification required and address it to the Director, Liability
Management Service (LMS), Bureau of the Treasury, 2nd Floor,
Palacio del Gobernador Bldg., Intramuros, Manila.
- Request Moneyline Telerate to install bidding terminal at
applicant’s trading premises.
- Submit to BTr the duly accomplished Conventions for Electronic
Auction of Government Securities, Convention for the Registry
of Scripless Securities, Autodebit/Autocredit Authorization,
List of Authorized Signatories facsimile signatures, Board Resolution
on Authorized Signatories, Application for registration with
- BTr’s acknowledgement of all documents received constitutes
the notification of eligibility to bid in the auctions of Government
Securities conducted by the Auction Committee.
V. Obligations of Eligible Dealers
- Regular participation in the electronic auction of Government
at reasonable and current market bid rates.
- Position-taking and market-making in Government Securities.
VI. Definition of Terms
UNIMPAIRED CAPITAL AND SURPLUS means the
combined capital accounts of a financial institution.
CAPITAL means the paid-in capital and surplus
SURPLUS means the excess of the assets over
the liabilities and paid-in capital of the financial institutions
but excluding the reserves set aside for valuation purposes
and reserves for liabilities and deferred income tax and other
VII. Other Information
The public offering of Government Securities is made through
Moneyline Telerate screens at the minimum three business days
before auction day.
The electronic auction is held on Mondays for Treasury Bills
and 2nd and 4th Tuesdays for Treasury Bonds.
Cut-off time for bids to be accepted is 1:00 P.M. in the BTr
Auction Room, 2nd Floor, Palacio del Gobernador Bldg., Intramuros,
Auction awards are keyed-back from the Auction Room to dealers
terminal immediately after the auction.
Auction awards are also electronically downloaded to RoSS immediately
after the auction for secondary trading .
Settlement is on Wednesday for Treasury Bills and Thursday for
Bureau of Treasury Date : November, 2003