MORNBFI Vol. 1 - Planters Development Bank

APP. Q-13b08.12.31ENHANCED INTRADAY LIQUIDITY FACILITY[Appendix to Subsecs. 4343Q.1 and 4601Q.3 (2008 - 4376Q.1 and 4601Q.1)]Given the increasing volume of PhilPaSStransactions as well as concerns of havingtemporary gridlocks in the PhilPaSS, thecurrent features of the Intraday LiquidityFacility (ILF) had been enhanced, specificallyon the following areas:a. Flexibility in changing thesecurities that will be used for the ILF;b. Availment of the facility on an “asthe need arises” basis; andc. Removal of commitment feesThe revised features of the ILF aredescribed below.A. Access to ILFGovernment securities (GS) held by anEligible Participant QB in its RegularPrincipal Securities Account that will beused for ILF purposes shall be deliveredto a sub-account under the BSP-ILFSecurities Account with the Bureau of theTreasury’s (BTr) Registry of ScriplessSecurities (RoSS). The delivered GS to beused for ILF purposes shall be recordedby RoSS in a sub-account (the “ClientSecurities Account (CSA)”-ILF) under theBSP-ILF Securities Account in the name ofthe Eligible Participant QB.QBs without RoSS securities accountswho intend/desire to avail of the ILF shall berequired to open/maintain a SecuritiesAccount with the RoSS. The documentationrequirements for RoSS membership shall beprescribed by the BTr.QBs desiring to avail of the ILF shall befurther required to open a sub-account underthe BSP-ILF Securities Account with the BTr’sRoSS by accomplishing an application letteraddressed to the Treasurer of the Philippines,Attn: The Director, Liability ManagementService and the Chief, Scripless SecuritiesRegistration Division. The application lettershall be in the form of Annex 1 hereto.B. TimelineFrom 9:00 am to 9:30 am of each bankingday, an Eligible Participant QB shallelectronically instruct the BTr to move/transfer from its Principal Securities Accountwith the BTr’s ROSS to the CSA-ILF underthe name of the Eligible Participant QB, thepool of peso-denominated GS to be set asidefor the ILF purpose. The Eligible ParticipantQB hereby confirms to the BTr that pursuantto an ILF availment, it has authorized thetransfer without consideration unto the CSA-ILF the pool of GS to be used for ILF purposes.From 9:30 am to 10:00 am, the BTrRoSS shall electronically submit aconsolidated report to BSP showing thedetails of the GS that were transferred tothe BSP-ILF Securities Account.From 10:00 am to 4:00 pm, EligibleParticipant QBs with insufficient balancesin its Demand Deposit Account No.2(PhilPaSS Account) may avail of the ILF.Eligible Participant QBs may avail of theILF as necessary to fund pending paymentinstructions. Thus, when the ILF systemdetects queued transactions in the PhilPaSS-Central Accounting System, the EligibleParticipant QB with insufficient balance in itsPhilPaSS Account will automatically sell tothe BSP-Treasury the GS in the CSA-ILF poolcorresponding to the amount which may beneeded to cover any pending paymentinstruction, and the proceeds of the sale ofsecurities shall be immediately credited tothe bank’s PhilPaSS Account. There may bemore than one availment during the day.Until a sale to the BSP or an Overnight Repo(O/N-RP) transaction with the BSP isManual of Regulations for Non-Bank Financial InstitutionsQ-RegulationsAppendix Q-13b - Page 1