Criteria for evaluating primary dealer activity in Bonos and Obligaciones

The General Secretariat of the Treasury and Financial Policy evaluates monthly the activity of Market Makers in Government Bonds, in accordance with the following areas:

- Participation in the Bonos and Obligaciones auctions.

- Participation in exchanges and buy-backs done by the General Secretariat of the Treasury and Financial Policy.

- Listing of Bonos and Obligaciones in the regulated markets or multilateral trading systems determined by the General Secretariat of the Treasury and Financial Policy.

- Participation in the total monthly trading in Bonos and Obligaciones in the regulated markets or multilateral trading systems determined by the General Secrtariat of the Treasury and Financial Policy.

- Participation in the monthly trading in Bonos and Obligaciones between members of the market of Public Debt in Book Entries.

- Participation in the monthly trading in Treasury Bills carried out by Market Makers with companies which are not members of the market of Public Debt in Book Entries.

- Stripping and reconstitution of strippable securities, as well as trading in strips

- Qualitative aspects, such as participation in operations promoting Government Debt nationally and abroad, the level of distribution of Government Debt in strategic countries or geographical zones, regularity in the behaviour of Market Makers and any other activity that reflects commitment to the Spanish Public Debt market.

- Aspects will be penalized such as not contributing information or advice requested by the General Secretariat of the Treasury and Financial Policy, not attending meetings of the General Secretariat of the Treasury and Financial Policy with the Market Makers, presenting requests in the auctions that deviate significantly from the price or the yield in the existing secondary market five minutes before the holding of the auction, or carrying out actions that could negatively affect the functioning of the market.

- In all cases companies will be penalised who do not comply with the obligations of participating in auctions and do not guarantee the liquidity of the secondary market through listing.