Members of Iceland Stock Exchange with more than 10% share of total turnover in Government Bonds for the preceding year are invited to sign the agreements. It is intended to sign agreements with no less than three and no more than five members each of which will be appointed Primary Dealer in Government Bonds.
The agreement introduces a Primary Dealer system for Government Bonds. Primary Dealers will have sole right to submit bids at bond auctions held by NDMA irrespective of securities being purchased or offered for sale.
Primary Dealers will take on Market Making obligations in five benchmark series of Government Bonds. Primary Dealers are obliged to submit bid and offer quotes for 60 m.kr. in each of the five series during opening hours of Iceland Stock Exchange in accordance with maximum spreads as laid out in the agreement.
Members of Iceland Stock Exchange who meet the above requirements and wish to become a Primary Dealer are required to sign an agreement with NDMA no later than 12:30, Thursday 30 May 2002.
