On Jan. 29, 2025, CAM CB announced changes to auction, settlement mechanisms for LPCO, NCD to improve efficiency; all LPCO, NCD transactions will follow a T+0 cycle.
For LPCO transactions, bidding will take place every Thursday from 8am to 9am, and settlements will occur on the same day after collateral confirmation.
For NCD transactions in KHR and USD, bidding will be open every Thursday from 8am to 11am, and settlement will be completed at 1:45pm on the same day.
Banks and microfinance institutions (MFIs) will be able to use their current accounts as collateral for LPCO transactions; the amendments are effective from Mar. 6, 2025.
Document dated Jan. 29, 2025, received from CAM CB Jan. 31, summarized on Feb. 3.
On Sep. 1, CAM CB issued guidelines for implementation of LPCO.
CAM CB issued guidelines on implementing liquidity-providing collateralized operations (LPCO), requires banks, MFIs to meet certain conditions before participating in LPCO.
Document dated Sep. 1, 2023, received from CAM CB Sep. 5, summarized on Sep. 6.
Before LPCO
Signs repo agreement with CAM CB, applies to use CAM CB's payment system (NBCP).
Prepares negotiable certificate of deposits (NCD) and/or government securities as collateral, bond yield or price must be higher than the LPCO amount.
LPCO Procedures
Maximum/minimum amounts per institution, maximum interest rates, procedures for USD denominated bonds, etc. will be announced before the LPCO date
Submit LPCO requests from 8-12pm on LPCO date, results will be announced at 2pm.
After Successful LPCO
On settlement day, winning institution will receive funds after transferring collateral to CAM CB, on repayment day, CAM CB will return bonds after repayment is received.
Interest will be calculated based on amount, tenor, interest rate, number of days.
Jan. 2025 Amendments
On Jan. 29, 2025, CAM CB announced changes to auction, settlement mechanisms for LPCO, NCD to improve efficiency; all LPCO, NCD transactions will follow a T+0 cycle.
For LPCO transactions, bidding will take place every Thursday from 8am to 9am, and settlements will occur on the same day after collateral confirmation.
For NCD transactions in KHR and USD, bidding will be open every Thursday from 8am to 11am, and settlement will be completed at 1:45pm on the same day.
Banks and microfinance institutions (MFIs) will be able to use their current accounts as collateral for LPCO transactions; the amendments are effective from Mar. 6, 2025.
Document dated Jan. 29, 2025, received from CAM CB Jan. 31, summarized on Feb. 3.
