But more than the benefits of automation, the creation of this system opens up for the BSP new horizons for enhancing the way it conducts open market operations or OMO. This electronic trading system provides the BSP the flexibility to use different methods to allocate RRPs to participating banks, including possibly an auction system.
Banks should therefore steer their hidden losses – and the loss-free valuation of the banking book, too, for that matter – in an appropriate manner so that losses or provisions for expected losses don't catch them by surprise.