The migration of the auctions for first-time new issues is aligned with the issuing calendar of SNB and Swiss Federal Finance Administration, and will take place in two steps. The very successful launch for GMBF was February 27, the federal bonds will follow on March 28. The use of Eurex Repo will shorten the auction duration from two days to a matter of hours. Karl Hug, head of money-market and foreign-exchange trading at the Swiss National Bank, said: "The SNB will regularly hold auctions of registered money-market claims and bonds issued by the Swiss federal government via the Eurex Repo electronic trading system. Use of the electronic trading system increases the efficiency of the auctions and enables integrated clearing and settlement". The Swiss Federal Finance Administration and SNB are the first users to decide in favor of Eurex Repo for their auctions. The price formation process can follow the Dutch procedure - the auctioneer sets the same price for all bidders after evaluating the bids - or the U.S. procedure, in which the auctioneer assigns the bids up to a certain minimum price.
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Migration Swiss Auctions Of First Issues Through Eurex Repo As Of End Of February - Auctions For Registered Money-Market Claims And Swiss Federal Bonds In Two Steps - Karl Hug, SNB: "Utilization Of The Electronic Trading System Boosts Efficiency"
Date 28/02/2001