Rights & obligations

Five financial institutions have been appointed as “Primary Dealers in Government 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 Primary Dealer Agreement:

Primary dealers have exclusive access to auctions of government 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 to 31 March each year.