The framework will allow industry players with legitimate economic reasons to establish a market in any particular currency pair. The framework will ensure compliance with laws, rules and regulations, and market-determined standards to instill discipline, integrity, and accountability among market participants and to uphold orderly market operation.
Under the framework, non-discriminatory prudential rules shall cover marketdetermined exchange rates, pre- and post-trade transparency and efficient settlement of the peso leg central bank money. The framework will depend on resilient and reliable infrastructure and will require effective audit and review. The BSP also envisions that there will be effective mechanisms for market participants to handle and respond to any improper practice and behavior.