22 December 2017 EM Currency Handbook 2018: Still Fuel in the Tank Bid/ask spread: Avg. daily vol: Ref. source: Fixing page: Short-term money Regulatory: Liquidity: Avg. ticket size: Bid/ask spread: Avg. daily vol: Ref. source: Government bond Regulatory: Avg. ticket size: Bid/ask spread: Avg. daily vol: Ref. source: 25bp PHP 100mn Reuters page <PHIRS>, Bloomberg broker page <ICPH1> Floating leg fixes against the 3mth FX forward implied, as seen on Bloomberg page <PHRFF>, 11:30am Manila time alai ket inStrurnaltS Non-Residents are not allowed to access the onshore market. Good for overnight, poor for term PHP 200mn for overnight, PHP 100mn for term 12.5 - 25bp Irregular Bloomberg page PPCALL <Index>, PICRV<Index> A local interbank repo market was launched in November 2017. As of December 2017, participation and activity in this market has been limited as many institutions have yet to complete the required documentation needed to participate in the market. Moreover, only a handful of pre-selected securities are allowed to be used as collateral. Repo trading activity should start to pick up toward the second half of 2018 as more participants come online. The development of the repo market will eventually pave the way for shorting of PHP securities as it allows for genuine securities borrowing and lending. PHP 50mn 2.5 - 20 bps PHP 11bn Bloomberg page < PDEX1>, Bloomberg broker page < ICPH3, AMSP5, TPPH10, TRPH3> Offshore PHP products Non-Deliverable Forward (NDF) Regulatory: ISDA documentation applies. NDF transactions with onshore counterparties are subject to certain regulations. All NDF contracts with residents shall be settled in pesos. For resident banks, NOP limit is 20% of the bank's unimpaired capital or USD50mn, whichever is smaller. Fixing: The PHP fix is the weighted average spot rate of trades in the onshore spot market done from 9:00am until 11:30am Manila time, one day before settlement date. The fixing r