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 2026, 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 primary dealer agreement:
- Primary dealers have the exclusive right to submit bids at auctions where government securities are offered for purchase or sale.
- 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 benchmark series. They are obliged to submit bid and ask offers on the stock exchange for at least 50 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 2026 to 31 March 2027.
Further information can be obtained from Government Debt Management at the following email address: [email protected].