The Bangko Sentral ng Pilipinas (BSP) granted Security Bank Corp. its derivatives license under the new circular to allow the offering of sophisticated derivative instruments to the local market.
The BSP circular, issued earlier this year, required financial institutions to renew their licenses on or before January 2009 and secure the necessary permit to continue offering derivative products to their clients. The policy also redefines the authorities accorded the derivatives license holder, as dealer, end-user or broker while ensuring that the necessary safeguards to determine client suitability and manage risk are in place.
Being the first local bank to secure a derivatives license under this new policy, Security Bank’s in-depth knowledge and expertise in providing hedging and derivatives solutions to the market is once more put into focus.
Senior vice president – treasurer and Treasury Group head, Rafael S. Algarra, Jr. affirmed that, “Security Bank has expanded its hedging and derivatives product offering to provide more solutions to the increasingly sophisticated sector of investors.”
He added, “We are committed to provide better, responsive and innovative financial solutions to suit the needs of diverse clients and in specific industries and business sectors where our expertise is most needed as a valued financial advisor.”
Security Bank also recently received the Special Recognition for Advocacy Support – Conference on Hedging Facilities for Exporters during the 2008 BSP Annual Stakeholders’ Awards, for extending its support for the BSP’s information and education campaign initiative to promote hedging and derivatives products to help address the concerns of local export companies that struggled to deal with foreign exchange fluctuations and rising inflation.
Algarra said, “We welcome opportunities to participate and contribute our knowledge in enhancing the local market’s awareness about some of the more sophisticated financial instruments available in the capital markets.”