MORNBFI Vol. 1 - Planters Development Bank

APP. Q-20a08.12.31ESTABLISHING THE MARKET BENCHMARKS/REFERENCE PRICES ANDCOMPUTATION METHOD USED TO MARK-TO-MARKET DEBTAND MARKETABLE EQUITY SECURITIES(Appendix to Subsec. 4388Q.5 (2008 - 4391Q.3)General PrincipleAs a general rule, to the extent a credible market pricing mechanism as determined bythe BSP exists for a given security, that market price shall be the basis of marking-tomarket.However, in the absence of a market price, a calculated price shall be used asprescribed herein.Marking-to-Market GuidelinesTo ensure consistency, the following shall be used as bases in marking-to-marketdebt and equity securities:Type of SecurityMarket Price BasisA. Equity Securities Listed in the Stock Exchange1. Traded in the Philippines Same day closing price as quoted at the PhilippineStock Exchange. In case of halt trading/suspension or holidays, use the lastavailable closing price.2. Traded Abroad Latest available closing price from the exchangewhere the securities are traded.B. Foreign Currency-Denominated Debt Securities Quoted in Major Information Systems(e.g., Bloomberg, Reuters)1. US Treasuries Price as of end of day, Manila time.2. US Agency papers such as Latest available price for the day, Manila time. InFannie Maes, Freddie Macs, the absence of a price, use average quotes of atGinnie Maes, Municipal papers least three (3) regular brokers/market makers.*3. Brady Bonds Same as B.2.4. For all US$-denominated Same as B.2.government and corporatesecurities5. Other foreign-currency securities Same as B.2.* Based on done rates if available. If done rates are not available, use the mid rate between bid and offer. If no mid ratesare available, use the bid rate.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-20a - Page 1