The Philippine Securities and Exchange Commission has stepped up its initiative to expand the Government Securities (GS) Repurchase Agreement (Repo) Market, including through a Global Master Repurchase Agreement (GMRA)-based workshop aimed at strengthening market readiness and supporting deeper capital market activity. Against renewed interest in repo transactions, the SEC is taking steps toward a potential expansion of the repo market to include nonbank financial institutions, widening participation beyond GS Eligible Dealers. It highlighted that, since assuming direct market oversight in 2020, it has worked to stabilize repo market operations and enforce compliance. The SEC also pointed to tax-related enabling measures following industry calls to broaden the Documentary Stamp Tax exemption for derivative market players, which led to Revenue Memorandum Circular No. 125-2024 amending Revenue Memorandum Circular No. 95-2017 on the tax treatment of GS repo transactions under the GMRA. Capacity-building is being used to support the proposed expansion, with the SEC, the Bankers Association of the Philippines and the Asian Development Bank convening a GMRA-based repo workshop attended by over 600 participants from February 19 to 21, 2025, intended to facilitate GMRA adoption and signing among current and prospective participants. The SEC is also working to identify the most appropriate self-regulatory organization for the Philippine repo market to support its long-term viability.
Philippine Securities and Exchange Commission 2025-02-25
Philippine Securities and Exchange Commission advances plans to expand the government securities repo market beyond eligible dealers
The Philippine SEC is advancing its initiative to expand the Government Securities Repurchase Agreement Market, potentially including nonbank financial institutions. A GMRA-based workshop with over 600 participants was held to enhance market readiness, and tax measures were introduced to broaden the Documentary Stamp Tax exemption. The SEC is also identifying a suitable self-regulatory organization to ensure the market's long-term viability.