Resolution Of November 29, 2011, In The General Direction Of Treasury And Financial Policy, Amending That Of 18 November 2008, Which Establishes The Conditions Of Performance Of The Market Makers Of Public Debt Of The Rei...

Original Language Title: Resolución de 29 de noviembre de 2011, de la Dirección General del Tesoro y Política Financiera, por la que se modifica la de 18 de noviembre de 2008, que establece las condiciones de actuación de los Creadores de Mercado de Deuda Pública del Rei...

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Resolution of 18 November 2008 that regulates the conditions of performance of the market makers of public debt of the Kingdom of Spain, defines the conditions for access to the second turns to the market makers in government bonds.

The current situation of the market, in which not only references «Benchmark» auctioned but also references 'off the run', together with the environment of greater volatility that comes to characterize the market, advises introducing greater flexibility in calculating the participation of market makers in the second round of auctions of bonds and obligations of the State.

On the other hand, to respond to the usual practices of the international market and, therefore, homogenize the conditions of quotation of the market of bonds and the obligation of residence time of these quotes in the screens of the regulated markets or multilateral trading systems, it was considered appropriate to modify this obligation.

In addition, the amendment to this standard takes advantage to correct a typo in the drafting of the latest version of this resolution.

By virtue of the foregoing, I have arranged: first provision.



Modify the following articles of the section 2 rights and obligations of the creators of market of bonds and obligations: A) replaced section 2 of the fifth article, rights of the creators of market of government bonds, with the following wording: «2. access to the run-offs: creators of market of bonds and obligations of the State have access exclusively to a second round of auctions of bonds and obligations of the State» that it will develop between the resolution of the auction and the twelve hours of the second business day after the conclusion of the auction.

During this second round, these market makers may present requests, which will be awarded to the rounded weighted average price resulting from the auction phase. However, in the announcement of the auction, the General direction of the Treasury may determine a method other than the previous award of the second round of the auction.

The amount that the Treasury will issue as the maximum in the second round for each bond will be 24 per 100 nominal awarded in the auction of the same bonus phase. Each creator product, maximum for each bond or obligation in this second round, upon presentation of the corresponding request, a 24 per 100 of the rating awarded to that entity in the Appendix of this bond auction and a comparable auction.

The maximum amount that each market maker can buy each bond or obligation will be the result of multiplying the total nominal amount awarded during the auction that same bond or obligation, by a coefficient of participation at auctions, multiplied by a coefficient of prize to the work as the creator of the market of bonds and in turn.

The coefficient of participation in each auction will reflect the participation of every creator of market of government bonds in the last comparable auctions awards. The calculation of this ratio will be subject to an objective methodology established by the General direction of Treasury and financial policy after consultation with the market makers in government bonds.

The award coefficient to the work as a creator of market can only have four possible non accumulable sections:-a 24 by 100 that the General direction of Treasury and financial policy may be granted to those market makers of bonds and obligations which, in the opinion of the General direction of Treasury and financial policy, met during the last preceding the auction evaluation , the price of bonds and minimum established in this standard and have been more active in the last periods of assessment record to the auction.

-20 per 100 that the General direction of Treasury and financial policy may be granted to those market makers of bonds and obligations which, in the opinion of the General direction of Treasury and financial policy, have been fulfilled, during the last period of assessment preceding the auction, the price of bonds and minimum established in this standard and However, not have been more active in the last periods of assessment record to the auction.

-A 4 by 100 that the General direction of Treasury and financial policy may be granted to those market makers of bonds and obligations which, in the opinion of the General direction of Treasury and financial policy, listed as the most active in the last evaluation periods previous to the auction and however have not fulfilled, during the last preceding the auction evaluation , the price of bonds and minimum established in this standard.

-A 0 per 100 for those market makers of bonds and which, in the opinion of the General direction of Treasury and financial policy, have failed, during the last preceding assessment to the auction, the price of bonds and minimum established in this standard, and appearing also as more assets in the last preceding assessment periods to the auction.

For these purposes, monthly this Directorate General, after giving notice to the Bank of Spain, will inform the market makers in government bonds that they can benefit from some of the sections described in the second round of each auction, such circumstances.»

(B) is replaced section 2 of the sixth article, obligations of the creators of market of bonds and obligations, with the following wording: «2. ensure the liquidity of the secondary of government bonds and securities segregated market complying with the obligations specified below: price of bond obligations and obligations shall be fulfilled when quotes» with the differential maximum and minimum volumes agreed by the General direction of Treasury and financial policy, are maintained in each of the working days according to the schedule approved by the General direction of Treasury and financial policy, in the screen of the regulated markets or multilateral trading systems determined by this Directorate General, for at least five hours between 8:30 and 17:15 hours each day than those working above.

On the other hand, quote of the segregated main obligations will be fulfilled quotes, with maximum spreads and minimum volumes agreed by the General direction of Treasury and financial policy, are maintained in each of the working days according to the schedule approved by the General direction of Treasury and financial policy, in the screen of the regulated markets or multilateral trading systems that are determined by this Directorate-General , for at least four hours between the 9.00 to 17.15 hours.

The General direction of Treasury and financial policy may modify the conditions of quotation, consultation to the market makers.

a) each creator's market must obligatorily list references defined as a reference of the market or "benchmark" which will be agreed by the General direction of Treasury and financial policy with the market makers. In the quotation of these references differential maximum demand and prices of offer and quoted minimum volumes agreed by the General direction of Treasury and financial policy, consultation must be respected to the market makers.

(b) each market maker must obligatorily list main segregated in accordance with the conditions agreed by the General direction of Treasury and financial policy differential maximum and minimum volume, consultation to the market makers.

For the segregated main quote, the market makers may be divided into groups. Thus, General direction of Treasury and financial policy can design baskets after consultation with the market makers that is may include the segregated main whose contribution is mandatory. Each basket is assigned to a group of market makers. For the manufacture of baskets will take into account the expiration of references be sampled them, so that they are similar in duration and liquidity. The baskets are periodically amended.»

Second disposition.

Corrects paragraph k) of the ninth article of the section 4th: evaluation of the creators of market: «k) will be penalized to the entities that do not comply with the obligations set out in paragraphs sixth and eighth, points 1 and 2.»



Sole final provision.



This resolution shall enter into force the day of its publication in the «Official Gazette».

Madrid, 29 November 2011.-the General Director of the Treasury and financial policy, Soledad Núñez Ramos.

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