(Bloomberg) -- The Philippines kicked off on Monday a new interest rate swap market to boost bond trading and liquidity as part of reforms to develop its capital market.

The move follows the International Swaps and Derivatives Association’s announcement on Friday, recognizing the Philippine overnight reference rate, on which the swaps will be anchored at the short end.

“We are excited for PESO IRS to go live to help boost transactions, create a benchmark yield curve, and deepen our capital markets,” Philippine central bank Governor Eli Remolona said in a statement. The primary aim is “to provide the liquidity investors need to invest in our fast-growing economy,” he said.

IRS, a staple derivative contract in more developed fixed-income markets, enables parties to manage interest rate risks by exchanging one stream of future interest payment for another.

Sixteen banks, including BDO Unibank Inc., Bank of the Philippine Islands and Metropolitan Bank and Trust Co., will be acting as market makers and will quote two-way prices for swaps against the ORR, which serves as the benchmark floating rate, according to the Bankers Association of the Philippines.

The IRS market will be open from 9 a.m. to 4 p.m. The market’s launch is part of the broader push to make Philippine assets more accessible to foreign and local investors.

Bloomberg LP, the parent company of Bloomberg News, will provide the trading platform for the peso IRS.