Correction: National Bank of Iceland changed to Landsbanki hf On May 29, the National Debt Management Agency (NDMA) signed agreements regarding Issuance and Market Making in Government securities. The objective of the agreements is to enhance the Treasury's access to borrowed money and strengthen price formation in the secondary market. As of June 1, 2007, seven financial institutions have been appointed as “Primary Dealers in Government securities”. They are: Glitnir Bank, Kaupthing Bank, Landsbanki hf, MP Investment Bank, Straumur Burdaras Investment Bank, Saga Capital Investment Bank and Icebank. The following bulletpoints describe the content of the Agreement: • Primary Dealers have exclusive rights to submit bids at NDMA's auctions. • Primary Dealers have exclusive access to NDMA's Securities Lending Facility. • Primary Dealers are obliged to submit bids at each auction for ISK 500 million nominal value. • Primary Dealers are Market Makers in the secondary market for Treasury Note and Treasury Bill benchmark series • Primary Dealers are obliged to quote on OMX Nordic Exchange Iceland bid and ask offers for at least ISK 100 million nominal value in each benchmark series with time-to-maturity more than three months. For securities with time-to-maturity of less than three months this obligation is limited to submitting a bid-offer for ISK 100 million. • Primary Dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements. • Primary Dealers are obliged to renew their offers within ten minutes after execution of transaction. If the Primary Dealer's total transaction in one series during that day equals ISK 600 million at nominal value, the Primary Dealer is permitted to withdraw from the maximum spread requirement for that particular series for the remainder of that day. • The agreement is valid from June 1, 2007 to May 31, 2008 • Total remuneration paid to all Primary Dealers is ISK 160 million for the duration of the agreement. A sample agreement is attached that provides comprehensive information on the Primary Dealers rights and obligations.
CORRECTION: Announcement 2007-05-29 15:46:39 - Signing of Agreements Regarding Issuance and Market Making in Government securities
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