SEC aims to expand repo market to boost liquidity

The Securities and Exchange Commission (SEC) aims to expand the government securities repurchase agreement (repo) market to deepen the country's capital markets.

Since 2020, when it took over direct market oversight, the SEC has worked to stabilize repo market operations and enforce compliance among participants.

Chairperson Emilio B. Aquino emphasized that expanding the repo market would improve liquidity, manage short-term funding, and boost overall market activity.

The initiative aims to enhance liquidity by allowing nonbank financial institutions to engage in repos beyond current GS-eligible dealers.

Last year, the Bangko Sentral ng Pilipinas and the Bankers Association of the Philippines proposed including fund managers and trust entities in the GS repo market to further develop the country's capital markets.

The SEC has also collaborated with industry groups to organize a GMRA-based repo workshop for over 600 participants from Feb. 19 to 21, equipping stakeholders with knowledge and tools.

Currently, the SEC is identifying an appropriate self-regulatory organization for the Philippine repo market to ensure its long-term viability.