Contenido

Auctions

•  Auction Dates
• 
  At the begining of each year, the Treasury publishes it´s issuance objectives. On a quartely basis, it publishes in the Officeal Gazzette (Boletin Oficial del Estado) the auction calendar for each of the offered instrument (Letras, Bonos and Obligaciones). The calendar specifies not only the auction dates but also the dates by which bids must be submitted and the securities allocateds paid for. Auctions of 12 and 18 month Letras are hold every two weeks.
  

  They usuallyt take place on Wednesday, unless it is a national holiday, in which case the auction is celebrated on the previous working day. The issuance dates of each type of Bonos and Obligaciones is decided quarterly, but the following is always respected:
  
  -3-and 5- year Bonos are auctioned on the first widnesday of the month.
  
  -10-,15-30-year Obligaciones auctions take place on the following month.
  
  Special auctions can be held on dates other than those mentioned above.
  
  Auctions Calendar

•  Tipes of Bids
• 
  Investors may participate in auctions through two types of bids:
  
• 
  1. Competitive bids
  
  The investor must indicate the desired nominal amount and the price he or she is willing to pay. The price must be expressed as a percentage of the nominal (or face) value. . Competitive bids are especially designed for participants with a certain degree of knowledge of the market: by attaching a price to the bid, the investor runs the risk that the bid will not be accepted by the Treasury.
  
  Competitive bids must be made for at least EUR1,000 in auctions of Letras, or EUR5,000 in auctions of Bonos and Obligaciones. Bids for larger amounts must be made for a multiple of EUR1,000. Each investor may submit as many competitive bids at different prices as he or she desires.
  
  
• 2. Non-competitive bids
  
  In this case, only the nominal amount which is sought must be indicated. The price to be paid will be the weighted average price in the auction.
  
  The price to be paid will be the weighted average price in the . Non-competitive bids are, in general terms, the most appropriate for retail investors, as the investor can rest assured that his or her bid will be accepted. In this case, the investor will receive an interest rate equal to the weighted average yield of bids accepted in the auction. Non-competitive bids may be submitted in all auction. Non-competitive bids must be made for at least EUR1,000 or a multiple of this amount. However, there is a maximum of EUR1,000,000 on the global amount of non-competitive bids submitted by each participant.
  
   ubmitting Bids
  
  Any person, be it a private individual or a firm, may participate in auctions held by the Treasury.
  
  Bids submitted by private individuals must be notified to the Bank of Spain no later than 13:00 (12:00 in the Canary Islands) of the next to last business day prior to the auction date (if the auction is held on Thursday) or on the last business day prior to the auction date (if the auction is held on Wednesday). Bids can be submitted in the following ways:
  
  In any of the Bank of Spain's offices -there is one in the capital of each province-. In this case, the purchased securities are registered in a "Direct Account" at the Bank of Spain

  In offering this service, the Bank of Spain acts in its capacity as Entidad Gestora. By choosing the Bank of Spain as his/her "Entidad Gestora", the investor will enjoy commissions which are generally lower than those charged by other "Entidades Gestoras", but will also forego the comfort of holding Treasury Securities at his/her usual financial intermediary (see Pros and Cons of Direct Accounts).
  
  Through any financial intermediary (banks, savings banks, credit co-operatives, brokerage firms, etc.). If the chosen firm enjoys the "Entidad Gestora" status, the purchased securities will be registered in the firm's "third party account" and the firm must provide the investor with a certificate indicating that the relevant book-entry has been made. If the financial intermediary is not an "Entidad Gestora", then an "Entidad Gestora" must both register the transaction and provide the investor with the appropriate certificate.
  
  Via telephone, at the new subscription service for Treasury Securities set up by the Madrid Stock Exchange (the telephone number is 91 70953 64). The order will be transmitted to any of the financial institutions which participate in this service and will then be processed.
  

•  A través de Internet.