BTr limits tap facility bids to one per dealer

ELIGIBLE DEALERS of government securities can now submit just one bid for the Bureau of the Treasury’s (BTr) tap facility offers, a memorandum showed.

The BTr said in a memorandum dated Jan. 11 addressed to government securities eligible dealers (GSED) that only one bid or placement for its tap facility offerings will be allowed per GSED-market maker.

The placement amount should also not exceed the amount on offer, the Treasury said.

The BTr previously did not have a limit on how many bids a GSED-market maker could make and the value of their tenders.

The memorandum amended Treasury Circular No. 1- 2018 dated Nov. 28, 2018, which set the guidelines for the tap facility as ordered by the Department of Finance.

The original guidelines said GSED-market makers could make a minimum placement of P10 million and any excess in multiples of P1 million.

Only GSED-market makers are allowed to access the tap facility, with placements made via the National Registry for Scripless Securities auction module.

The window for placements is open from 2 p.m. to 4 p.m., with the Treasury announcing results on or before 5 p.m. of the same day.

The BTr uses its tap facility to accommodate strong demand for its Treasury bill and bond offerings. Terms of tap facility offers are similar to the auctioned securities. — A.M.C. Sy