Ministry´s Operations 2018

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

Published

  • Secondary Market
  • State Debt
Updated 15-1-2018
  • Lending facility

Ministry's operations on the secondary market

The long-term objectives for operations on the secondary market contribute to re-financing risk management and support liquidity and effectiveness of the secondary market functioning. An effective secondary market in terms of minimising transaction costs and maintaining market depth and price stability is a necessary condition for the issuing activity of the state and smooth and cost-effective funding over the long term. The Ministry of Finance has been operating actively on the secondary market, primarily through the MTS Czech Republic electronic trading platform. The MTS Czech Republic enables carrying out buy-backs, tap sales and exchanges of government bonds from the Ministry's own portfolio.

According to the Primary Dealer Agreement for Czech Government Securities the Ministry of Finance may execute tap sales and exchanges any trading day 10:00 a.m. – 12:00 a.m. and 2:00 p.m. – 4:00 p.m. CET when there is no auction executed. The Ministry of Finance may execute buy-backs on any trading Day 10:00 a.m. – 12:00 a.m. and 2:00 p.m. – 4:00 p.m. CET.

Buy-backs, tap sales and exchanges on the secondary market occur in a transparent manner. As a matter of practice, the Ministry of Finance will inform all Primary Dealers about the intention to conduct a transaction one business day prior to the date on which the transaction is to occur. The Primary Dealers will be notified about:

1. the type of transaction (buy-back, tap sale or exchange),
2. the particular government bond (auctioned bond or buy back bond) ,
3. the maximum total volume of the transaction with particular government bonds,
4. the time when bid or offers from primary dealers can be submitted via the system,
5. the date of settlement,
6. the contact person at the Ministry.

At the time offers are accepted from Primary Dealers, the Primary Dealers may enter into the system their prices and the volume of each buy-backs, tap sales or exchanges. Afterward, depending on the price and the volume, the Ministry will either accept or reject the offer. The Ministry may accept offers from more than one Primary Dealer, but is not obligated to accept any Primary Dealer's offer.

The Ministry of Finance may execute lending facilities on the secondary market. The lending facilities are available as repo transactions and as loans of securities. Primary Dealers borrow the Czech Government Bonds and the Ministry of Finance borrows CZK liquidity, Czech Government Bonds, Treasury Bills or Czech National Bank Bills. Transactions may be made on trading days between 8:00 a.m. and 4:00 p.m. CET.

Repo operations are the most common instrument used for the purposes of cash management of the treasury single account. Repo operations are short-term collateralized investments with Czech Government Bonds, T-bills or Czech National Bank bills used as collateral.

Operations with T-Bonds on the Secondary Market

Buy - Backs
Settlement date Issue name ISIN Nominal Amount (CZK) Average Price Number of Counterparties

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Tap Sales
Settlement date Issue name ISIN Nominal Amount (CZK) Average Price Number of Counterparties
  

Updated:

SWITCH AUCTION
Settlement Date Issuance Buy-back
Bond Face Amount (CZK) Average Price Bond Face Amount (CZK) Average Price

Updated:

LENDING FACILITY - REPO transactions
Settlement Date Expiration Date Issue Name ISIN Face Amount (CZK)
02.01.2018 16.01.2018 CZGB 0.00/20 CZ0001005011 420 000 000
11.01.2018 26.01.2018 CZGB 3.85/21 CZ0001002851 60 000 000

Updated: 15.01.2018

1 Repo operation from investment portfolio

LENDING FACILITY - LOANS OF SECURITIES
Settlement Date Expiration Date Issue Name ISIN Face Amount (CZK)
08.01.2018 08.03.2018 CZGB 0.25/27 CZ0001005037 246 000 000
11.01.2018 08.03.2018 CZGB VAR/27 CZ0001004105 33 000 000
12.01.2018 01.03.2018 CZGB 0.25/27 CZ0001005037 50 000 000
15.01.2018 01.03.2018 CZGB 0.25/27 CZ0001005037 250 000 000

Updated: 15.01.2018

REVERSE Repo Transactions
Settlement Date Expiration Date Issue Name ISIN Collateral

Updated: