Rights of Primary Dealers in Letras del Tesoro

1. Participation in Treasury Auctions: Only Market Makers in Treasury Bills may present requests in the thirty minutes period before the closure of the request presentation period in each Treasury Bills auction.

2. Access to the second rounds. The Market makers in Treasury Bills may gain exclusive access to a second round of the Treasury Bills auction, which will be carried out between the end of the auction and 12:00 P.M of the previous day of the effective date (D+3).

A maximum of 24% of the nominal amount of each Letra allocated at auction will be issued in this second phase.

All bids for Letras will be met at the rounded-up weighted average interest rate arising from the auction phase.

The share of the second round that can be obtained by each Market maker that qualifies will be equal to that market maker’s combined allotment in both the current auction and the previous auction of the similar Letra.

The maximum percentage of the second round for each Market maker is divided into several tranches:

  • A 24% of the nominal allotted in the auction, which the Treasury may distribute among the most active Market makers, according to the last evaluation periods previous to the auction and  those Market makers  that have also complied with the minimum quoting obligations during the last evaluation period previous to the auction.
     
  • A 20% of the nominal allotted in the auction, which the Treasury may distribute among those Market makers that have complied with the minimum quoting obligations during the last evaluation period previous to the auction and that are not among the most active Market makers, according to the last evaluation periods previous to the auction.
     
  • A 4% of the nominal allotted in the auction, among the most active Market makers, according to the last evaluation periods previous to the auction and that have not complied with the minimum quoting obligations during the last evaluation period previous to the auction.
     
  • A 0%, to those Market makers which have not been among the most active market makers, according to the last evaluation periods previous to the auction and that have not complied with the minimum quoting obligations during the last evaluation period previous to the auction.


3. Other Debt and treasury management operations: The status of Market Maker will be valued in the selection of counterparties for other Debt and treasury management operations which may be carried out by the General Secretariat of the Treasury and Financial Policy, such as the Treasury liquidity auctions.

4. Reception of information about Treasury financing policy.

5. Participation, where applicable, in the setting of objectives for issues of Treasury short term debt instruments.

6. Representation on the Public Debt Market Advisory Commission, together with the Market Makers in Government Bonds.