Basic Information

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

Published

  • State Debt
  • Primary dealers
Updated 3-1-2020

Primary Dealer

According to the Primary Dealer Agreement for Czech Government Securities Primary Dealer has the exclusive right to carry the title of „Primary Dealer in Czech Government Securities“.

The Primary Dealer is obliged:

  • to participate in the auctions of Czech Government Bonds organized by the Czech National Bank on behalf of the Ministry of Finance and submit bids of investors and purchase not less than 3% of the total face value of Czech Government Bonds sold in primary auctions within four consecutive evaluation periods,
  • to be system participant and act as a market maker at the chosen DETS, act in accordance with its market rules, and to contribute on best effort basis to the liquidity of the secondary market trading of the Czech Government Bonds. The chosen DETS has been platform MTS Czech Republic (Mercato Telematico Secondario) since 1 November 2011. Based on the decision of the Committee of Primary Dealers on 19 December 2019, the platform has been extended for the following two years until 31 December 2021.

The Primary Dealer has the right:

  • to submission of bids at the Auctions of Czech Government Bonds and the Primary Dealer or an applicant to become a new member of the Primary Dealer Group have the right to participate in Tap Issuance, Buy-Backs or Exchanges,
  • to participate in lending facilities, repurchase transactions or buy and sell back (the Primary Dealer with whom the Ministry of Finance may enter into an Global Master Repurchase Agreement, Global Master Securities Lending Agreement or Master Agreement for Financial Transactions concluded only in Czech language as Rámcová smlouva o obchodování na finančním trhu),
  • to participate in the Primary Dealer Committee, regular meetings of the committee shall be convened at least once a half.

Recognized Dealer

According to the Recognized Dealer Agreement for Czech Government Securities Recognized Dealer has the exclusive right to carry the title of „Recognized Dealer in Czech Government Securities“.

The Recognized Dealer is obliged:

  • to be a system participant and act as an active market participant at least on one of the chosen DETS, act in accordance with its market rules, and to contribute on best effort basis to the liquidity of the secondary market trading of the Czech Government Bonds.

The Recognized Dealer has the right:

  • to participate in the competitive part of Auctions of Czech Government Bonds and the Recognized Dealer or an applicant to become a new member of the Recognized Dealer Group have the right to participate in Tap Issuance, Buy-Backs or Exchanges.
  • to participate in lending facilities, repurchase transactions or buy and sell back (the Recognized Dealer with whom the Ministry of Finance may enter into an Global Master Repurchase Agreement, Global Master Securities Lending Agreement or Master Agreement for Financial Transactions concluded only in Czech language as Rámcová smlouva o obchodování na finančním trhu).