Derivative dealers in Manila are anticipating the launch of bond future contracts in the interbank market in the coming months with hopes to list the product next year. "This will allow market participants the opportunity to hedge long bond positions," said a senior dealer at an international house. The dealer continued that a derivatives subcommittee of the Bankers Association of the Philippines, of which he is a member, has been discussing the product since last year to further develop the market. Following talks with the government regulators in recent months, he expects the futures contracts to take off in the next few months. The dealer added the product will initially be traded over-the-counter and proving its success, the contracts could be listed on the domestic exchange next year. "Futures can add greater depth to the market," he continued. The subcommittee is expected to meet shortly to finalize the product launch. Two- and five-year contracts are in the works, with a targeted contract size of PHP50 million (USD 0.88 million).
Philippines Mart Preps For Bond Contracts
