BIZ BUZZ: Price to pay for JPMorgan index inclusion

Everyone seems gung-ho about the Philippines entering the JPMorgan Government Bond Index on Jan. 29, 2027. Murmurs among bank treasurers, however, raise concern about the steep price that must be paid—not just by the banks but the investing public, or the bondholders, as well.

We’re talking about the country’s commitment to align the local bond computation with international standards, and the push to implement such a new convention by Sept. 15, in order to join the index.

In a nutshell, the proposed amendment in bond pricing removes the price adjustment between the gross principal and net principal. Market players fear that such an adjustment could gnaw on the profitability of banks that hold government securities in their trading books. Their retail investors and trust clients may also take a hit.

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But some market players lament that banking regulators have not issued (and may not issue) any circular to require this change in bond convention, which has been in place since the 1990s. They want the shift to emerge as a “market initiative.”

However, if the bond recomputation indeed results in significant losses, bankers fear that they would be the ones vulnerable to legal complaints.

One senior banker told Biz Buzz, “Somewhere down the road, someone could sue the bank and say, why change the computation at our expense?”

As such, we hear that the open market committee of the Bankers Association of the Philippines (BAP) wants to ask the Bangko Sentral ng Pilipinas for a circular directing them to adopt the new method. The appeal is now up for deliberation by the BAP board.

If it’s mandated, banks want a document, formal directive, to protect themselves from lawsuits.

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As the issuer of those government bonds, the source said another alternative is for the Bureau of Treasury to undertake a bond swap. However, this doesn’t seem to be a walk in the park because it could be difficult to explain to the Commission on Audit.

At the end of the day, banks have no choice but to comply.

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“But where’s the circular so we can adjust product manuals and system?” the source asked.

Also, there’s doubt on whether the market is ready to make the big shift by the Sept. 15 target.

Thus, while joining the JPMorgan bond index is a big wow, many people in the dealing room are not ready to uncork the champagne just yet.

“There’s still a lot of work to be done,” our source said. — Doris Dumlao-Abadilla

BlockShoals joins FinTech Alliance

For a company looking to win over both regulators and users, who you keep company with matters.

BlockShoals Technologies Inc., the Securities and Exchange Commission-approved crypto asset intermediary (CAI) operating under the regulator’s Strategic Sandbox, has joined FinTech Alliance PH, the country’s largest digital industry group.

The move gives BlockShoals a seat alongside more than 100 corporate members that account for over 95 percent of the country’s digital retail financial transaction volume.

But beyond networking, the company is clearly sending a message: compliance comes first.

BlockShoals chair Alfredo Panlilio said joining the alliance reflects the company’s goal of becoming the country’s most trusted and reliable CAI.

BlockShoals—the locally regulated entity through which Binance products and services are offered in the Philippines—said the membership aligns with its goal of setting the standard for regulatory compliance, consumer protection and operational excellence in the digital asset space.

Under the arrangement, BlockShoals handles local regulatory and compliance responsibilities, while Binance provides the technology infrastructure.

As policymakers continue refining the rules for digital assets, firms are increasingly seeking credibility as much as customers.

For BlockShoals, joining the country’s leading fintech association may be another step toward earning both. —Emmanuel John B. Abris

Globe gets new brand builder

One of the world’s strongest telco brands is set to get a new brand builder.

Globe Telecom Inc. has appointed Carlo Jimenez as vice president for marketing and head of masterbrand, tapping his more than two decades of experience in shaping brands through the advertising industry.

In his new position, Jimenez “will be leading Globe’s masterbrand direction, driving consistent brand equity, and ensuring that Globe and its portfolio of brands continue to play a meaningful, impactful role in the daily lives of Filipinos.”

Before joining Globe, Jimenez spent 22 years at Publicis JimenezBasic, 12 of those as its chief strategy officer.

His career in advertising began in 2002 as a copywriting intern at Basic Advertising.

Over the years, he helped shape campaigns for some of the country’s biggest companies, including United Laboratories, Jollibee Foods Corp., Monde Nissin and Splash. He also worked on regional brands such as Mondelez, Unilever and L’Oréal.

At Globe, Jimenez will now help lead a company that Brand Finance ranked as the world’s 10th strongest telco brand in 2026. —Logan Kal-El M. Zapanta