Signing of primary dealer agreements

15.03.24
Signing of primary dealer agreements

Today the Government Debt Management on behalf of the Treasury and primary dealers signed agreements regarding Issuance and Market Making in Treasury securities. The objective of the agreements is to maintain the Treasury’s access to financing, to enhance price formation in the secondary market for Treasury securities and promote an active system of benchmark issues in Iceland.

As of 1 April 2024, five financial institutions have been appointed as “primary dealers in Treasury securities”. They are: Arion Banki hf., Fossar Investment Bank hf., Islandsbanki hf., Kvika banki hf. and Landsbankinn hf.

The following bullet points describe the main content of the Agreement:

  • Primary dealers have exclusive access to auctions of Treasury securities.
  • Primary dealers have exclusive access to special facilities such as repurchase agreements offered by the Government Debt Management on behalf of the Treasury.
  • Primary dealers are obliged to submit bids at each auction for a minimum of 100 m.kr. nominal value.
  • Primary dealers are Market Makers in the secondary market for government bond series. They are obliged to submit bid and ask offers on the stock exchange for at least 60 to 100 m.kr. nominal value in each benchmark series (as laid out in the agreements).
  • Primary dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements.
  • Primary dealers are obliged to renew their offers within ten minutes after execution of transaction. The primary dealer is entitled to depart from the maximum spread requirement if certain conditions are fulfilled.
  • The agreement is valid from 1 April 2024 to 31 March 2025.

Further information can be obtained from Björgvin Sighvatsson, head of the Government Debt Management at +354 569 9600.

Til baka

Aðrar fréttir

Jul 16 2025
Treasury Bonds
Treasury Bond Auction Announcement - RIKB 27 0415 - RIKS 29 0917 - Switch Auction or Cash
Series RIKB 27 0415 RIKS 29 0917
ISIN IS0000036291 IS0000037711
Maturity Date 04/15/2027 09/17/2029
Auction Date 07/18/2025 07/18/2025
Settlement Date 07/23/2025 07/23/2025
10% addition 07/22/2025 07/22/2025
 
Buyback issue RIKS 26 0216  
Buyback price (clean) 98.1600  

On the Auction Date, between 10:30 a.m. and 11:00 a.m., the Government Debt Management will auction Treasury bonds in the Series, with the ISIN numbers and with the Maturity Dates according to the table above. Article 6 of the General Terms of Auction for Treasury bonds applies for the right to purchase an additional 10%. The Treasury bonds will be delivered in electronic form on the Settlement Date.

Payment for the bonds can be made in cash or with the Buyback issue at the Buyback price.

Payment in cash for the Treasury bonds must be received by the Central Bank before 14:00 on the Settlement Date. If payment is made with the Buyback issue, a notification of the amount must be received no later than by 14:00 on the Auction Date. In that case, the value of the Buyback bond is determined by the Buyback price plus accrued interest and indexation (i.e. dirty price).

No fee is paid in relation to the purchase of RIKS 26 0216.

Further reference is made to the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Tryggvi Freyr Harðarson, Government Debt Management, at +354 569 9630.
Jul 10 2025
Treasury Bills
Treasury Bill Auction Announcement - RIKV 25 1119
Series RIKV 25 1119
ISIN IS0000037547
Maturity Date 11/19/2025
Auction Date 07/14/2025
Settlement Date 07/16/2025

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bills in the Series, with the ISIN number and with the Maturity Date according to the table above. Payments for the Treasury bills must be received by the Central Bank before 14:00 on the Settlement Date and the Bills will be delivered in electronic form on the same day.

Further reference is made to the General Terms of Icelandic Treasury bills and General Terms of Auction for Treasury bills on the Government Debt Management website.

For additional information please contact Magnús Freyr Hrafnsson, Government Debt Management, at +354 569 9679.