BSP expands access of unit investment trust funds to securities in the primary market

Effective 30 November 2023, trust entities (TEs) may access the primary market for the BSP Securities. Under the MB-approved amendments to the regulations, TEs may now participate in the auction for BSP Securities through their unit investment trust funds (UITFs).

Expanding the eligible participants in the primary market of BSP Securities enhances the BSP’s capability to manage liquidity in the system in order to guide short-term interest rates toward the policy rate.

In addition, this will ensure the tradability and viability of BSP Securities as a highly liquid instrument, thus allowing for better price discovery and monetary policy transmission.

Moving forward, the BSP will continue to review the various features of its monetary tools to enhance monetary policy transmission as well as foster the development of the money market through better price discovery.