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The BSP Grants Permit to Operate to the Philippine Depository and Trust Corp. (PDTC)

10.25.2004

The Governor of the Bangko Sentral ng Pilipinas signed on 22 October 2004 the Permit to Operate of the PDTC as a non-bank financial institution with authority to perform quasi-banking functions, and trust and other fiduciary business and investment management activities.  The conferment of the Permit to Operate was in line with the prior approval-in-principle granted by the Monetary Board in May 2003 that was conditioned on PDTC’s completion of all chartering and licensing requirements. 

The PDTC represents the custody and depository unit of the Fixed Income Exchange (FIE) infrastructure, which is an initiative of the Bankers Association of the Philippines (BAP), aimed at providing a cohesive and straight through processing of securities transactions from trading to clearing and settlement and custody. The BAP, for itself and on behalf of its members, is one of the three largest shareholders of PDTC, together with the Philippine Stock Exchange and the Philippine Dealing and Securities Holding Corp. (PDSHC), the holding company of the FIE. 

At the helm of PDTC is a nine-member Board of Directors chaired by Mr. Vicente B. Castillo. Its three independent directors are: Mr. Jesus P. Estanislao, Mr. Teodoro B. Montecillo and Mr. Edwin B. Villanueva.  Mr. Cesar EA Virata, who chairs PDSHC, concurrently serves as PDTC director. The President and Chief Operations Officer is Mr. Roy B. Lacsamana.

The issuance of a Permit to Operate to PDTC, carries with it automatic accreditation as securities custodian and securities registry since said functions are specifically included in its operational framework previously approved in principle by the Monetary Board.   In fact, said Permit to Operate was only issued after PDTC had shown compliance with the requirements of Circular No. 428 dated 27 April 2004.  This brings to six (6) the BSP’s accredited third party custodians.

“With the PDTC’s approval for full operations, we look forward to the launch of the Fixed Income Exchange as soon as possible. This is a critical market infrastructure that will support the deepening of our domestic capital market particularly the underdeveloped bond market.  We call upon all market players and government agencies to walk hand-in-hand to link up our resources to fully establish a safe, seamless and efficient debt securities settlement infrastructure.  We cannot afford to be left behind by our aggressive regional competitors  and we will surely be left behind if our only aspiration is to preserve the status quo.  An efficient domestic capital market is a vital national priority that Bangko Sentral ng Pilipinas strongly supports.“ BSP Governor Rafael B. Buenaventura declared.

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