Dealers target hedging activity in the Philippines

In the past two years, the Bangko Sentral ng Pilipinas (BSP) has replaced its old dealer approval process with a list of generally authorised derivatives markets activities, in which all universal and commercial banks may engage. On a non-published basis, it has also encouraged domestic businesses to consider derivatives as a risk management tool.

Jonny Noe Ravalo, managing director of the BSP's supervision and examination group in Manila, said onshore derivatives play several important roles in