Evaluation of Dealers

Dept 20 - Debt and Financial Assets Management Department
Dept 20 - Debt and Financial Assets Management Department

Published

  • State Debt
Updated 15-4-2016
  • Criteria for evaluation of Primary Dealers enters into force on 1 January 2014
  • Criteria for evaluation of Primary Dealers enters into force on 1 January 2016

Evaluation of Members of Primary Dealer Group

The Primary Dealer´s performance is evaluated based on APEI (Aggregate Performance Evaluation Index) on a quarterly basis. This methodology can be modified based on decision of the Ministry of Finance after the consultation with the primary dealer group in the Primary Dealer Committee meetings. The performance evaluations are communicated to each member of primary dealer group individually, including the value of APEI.

A list of seven best-performing members of primary dealer group is published within the regular Debt Portfolio Management Quarterly Report and The Czech Republic Government Debt Management Annual Report published in the month following the end of evaluation period on the website of the Ministry of Finance.

The maximum evaluation of each Primary Dealer can reach 100 points. This score is calculated on a relative basis. The most successful Primary Dealer in a particular sub-criterion is assigned the maximum number of points. The others Primary Dealers are allocated points proportionally to the performance of the winner. Score is then aggregated over the grid of sub-criteria and Primary Dealers are ranked in the descending order based on the number of points.

Criteria for evaluation of Primary Dealers:
A. Primary market 55 points B. Secondary market 45 points
A.1. Primary Auctions Share - T-Bonds 30.0 pts B.1. Quoting Obligations Performance on DETS 10.0 pts
A.2. Dependability 5.0 pts B.2. Qualitative Performance on DETS 10.0 pts
A.3. Auction Pricing Strategy 5.0 pts B.3. Traded Volume on DETS 10.0 pts
A.4. Auction Participation 5.0 pts B.4. Ministry of Finance Market Operations 10.0 pts
A.5. Primary Auctions Share - T-Bills 10 pts B.5. Tap Issuance, Buy-Backs and Exchanges
Pricing Strategy
5.0 pts