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توجهات جديدة بشأن الرقابة على القطاع المالي. قانون Dodd – Frank الأمريكي: الهدف من القانون: العمل بشكل استباقي لمنع الأزمات يطبق القانون خلال عامين من صيف 2010. يعالج عدة قضايا أهمها الاستقرار النظامي والتشريع الاحترازي وحماية المستثمر والعمليات. المخاطر النظامية Risk Systemic. - PowerPoint PPT Presentation
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جديدة توجهاتالمالي القطاع على الرقابة بشأن
2
Dodd ndash Frankقانون bull األمريكي bull لمنع استباقي بشكل العمل القانون من الهدف
األزماتصيف bull من عامين خالل القانون 2010يطبقالنظامي bull االستقرار أهمها قضايا عدة يعالج
المستثمر وحماية االحترازي والتشريعوالعمليات
3
النظامية Risk Systemicالمخاطر
المالي bull االستقرار على FSOCيؤسسمجلساإلشراف ب ويقوم
في ndash النظامية المخاطر وتحديد لتشخيص استباقي بشكل العمل الكبرى المصرفية غير والمؤMسسات والبنوك المالية األسواق
إجهاد bull لديها (stress test)اختبارات التي المؤسسات علىنحو تبلغ - 10أصول تؤثر قد التي المؤسسات دوالر مليار
ككل القطاع على سلباتبلغ bull أن المصرفية غير والمؤسسات البنوك على يجب
عمليات إجراء قبل مسبقا الفيدرالي االحتياطي بنك أغلبية حصص على استحواذ أو اندماج
4
التصفية عملياتاإلفالس bull قوانين محل الجديد القانون يحل
المالية الشركات بتصفية المتعلقة واإلعسارتعيين bull صالحية الخزانة كمصفي FDICلوزارة
مالية شركة ألي رسمي
5
االستثمار حدود
في bull لحسابها التداول المصرفية المؤسساMت تمنع المالية األوراق
االستثماMر bull أو إنشاء من المصرفية الMمؤسساMت تمنعالتغطية صMناديق أو الخاصة الملكية صناديق في
) يسمح) ولMكن التحوطمن bull أقل أو 3امتالك خاصة ملكية صندوق أصول قيمة من
الصندوق عمر من األولى السنة خالل تغطية صندوقمMن bull أقل المؤسسة 3استثمار رأسمال من األول الشق من
Tier 1المصرفية ) تغطية( صندوق أو خاصة ملكية صندوق في
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
2
Dodd ndash Frankقانون bull األمريكي bull لمنع استباقي بشكل العمل القانون من الهدف
األزماتصيف bull من عامين خالل القانون 2010يطبقالنظامي bull االستقرار أهمها قضايا عدة يعالج
المستثمر وحماية االحترازي والتشريعوالعمليات
3
النظامية Risk Systemicالمخاطر
المالي bull االستقرار على FSOCيؤسسمجلساإلشراف ب ويقوم
في ndash النظامية المخاطر وتحديد لتشخيص استباقي بشكل العمل الكبرى المصرفية غير والمؤMسسات والبنوك المالية األسواق
إجهاد bull لديها (stress test)اختبارات التي المؤسسات علىنحو تبلغ - 10أصول تؤثر قد التي المؤسسات دوالر مليار
ككل القطاع على سلباتبلغ bull أن المصرفية غير والمؤسسات البنوك على يجب
عمليات إجراء قبل مسبقا الفيدرالي االحتياطي بنك أغلبية حصص على استحواذ أو اندماج
4
التصفية عملياتاإلفالس bull قوانين محل الجديد القانون يحل
المالية الشركات بتصفية المتعلقة واإلعسارتعيين bull صالحية الخزانة كمصفي FDICلوزارة
مالية شركة ألي رسمي
5
االستثمار حدود
في bull لحسابها التداول المصرفية المؤسساMت تمنع المالية األوراق
االستثماMر bull أو إنشاء من المصرفية الMمؤسساMت تمنعالتغطية صMناديق أو الخاصة الملكية صناديق في
) يسمح) ولMكن التحوطمن bull أقل أو 3امتالك خاصة ملكية صندوق أصول قيمة من
الصندوق عمر من األولى السنة خالل تغطية صندوقمMن bull أقل المؤسسة 3استثمار رأسمال من األول الشق من
Tier 1المصرفية ) تغطية( صندوق أو خاصة ملكية صندوق في
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
3
النظامية Risk Systemicالمخاطر
المالي bull االستقرار على FSOCيؤسسمجلساإلشراف ب ويقوم
في ndash النظامية المخاطر وتحديد لتشخيص استباقي بشكل العمل الكبرى المصرفية غير والمؤMسسات والبنوك المالية األسواق
إجهاد bull لديها (stress test)اختبارات التي المؤسسات علىنحو تبلغ - 10أصول تؤثر قد التي المؤسسات دوالر مليار
ككل القطاع على سلباتبلغ bull أن المصرفية غير والمؤسسات البنوك على يجب
عمليات إجراء قبل مسبقا الفيدرالي االحتياطي بنك أغلبية حصص على استحواذ أو اندماج
4
التصفية عملياتاإلفالس bull قوانين محل الجديد القانون يحل
المالية الشركات بتصفية المتعلقة واإلعسارتعيين bull صالحية الخزانة كمصفي FDICلوزارة
مالية شركة ألي رسمي
5
االستثمار حدود
في bull لحسابها التداول المصرفية المؤسساMت تمنع المالية األوراق
االستثماMر bull أو إنشاء من المصرفية الMمؤسساMت تمنعالتغطية صMناديق أو الخاصة الملكية صناديق في
) يسمح) ولMكن التحوطمن bull أقل أو 3امتالك خاصة ملكية صندوق أصول قيمة من
الصندوق عمر من األولى السنة خالل تغطية صندوقمMن bull أقل المؤسسة 3استثمار رأسمال من األول الشق من
Tier 1المصرفية ) تغطية( صندوق أو خاصة ملكية صندوق في
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
4
التصفية عملياتاإلفالس bull قوانين محل الجديد القانون يحل
المالية الشركات بتصفية المتعلقة واإلعسارتعيين bull صالحية الخزانة كمصفي FDICلوزارة
مالية شركة ألي رسمي
5
االستثمار حدود
في bull لحسابها التداول المصرفية المؤسساMت تمنع المالية األوراق
االستثماMر bull أو إنشاء من المصرفية الMمؤسساMت تمنعالتغطية صMناديق أو الخاصة الملكية صناديق في
) يسمح) ولMكن التحوطمن bull أقل أو 3امتالك خاصة ملكية صندوق أصول قيمة من
الصندوق عمر من األولى السنة خالل تغطية صندوقمMن bull أقل المؤسسة 3استثمار رأسمال من األول الشق من
Tier 1المصرفية ) تغطية( صندوق أو خاصة ملكية صندوق في
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
5
االستثمار حدود
في bull لحسابها التداول المصرفية المؤسساMت تمنع المالية األوراق
االستثماMر bull أو إنشاء من المصرفية الMمؤسساMت تمنعالتغطية صMناديق أو الخاصة الملكية صناديق في
) يسمح) ولMكن التحوطمن bull أقل أو 3امتالك خاصة ملكية صندوق أصول قيمة من
الصندوق عمر من األولى السنة خالل تغطية صندوقمMن bull أقل المؤسسة 3استثمار رأسمال من األول الشق من
Tier 1المصرفية ) تغطية( صندوق أو خاصة ملكية صندوق في
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
6
االستثمار حدودبها bull المسموح التداول عمليات
المؤسسات ndash أو الحكومة عن الصادرة المالية األوراقماك فريدي ماي فاني ماي جيني مثل ترعاها التي
وغيرهاndash السوق صانع نشاطndash المخاطر ضد التحوط أنشطةndash العمالء عن نيابة الوساطةعن ndash العمل حجم يزيد ال أم بشريطة من 5التوريق
الميزانية في المرجحة االئتمانية المخاطر
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
االحترازي التنظيم المخاطر درجة على بناء المالية المالءة نسب
المرجحة bull األصول قيمة على مقسوما المال لرأس األول الشق6-4بمخاطرها
األصول bull قيمة على مقسوما والثاني األول الشقين مجموعبمخاطرها 10-8المرجحة
عن bull المالي الرفع نسبة تزيد ال 5-4أن ملكية ) مضاعفالملكية على مقسوما (25-20األصول مرة
7
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
8
بالمشتقات التداولكافة bull على المقاصة عمليات تتم أن يجب
المقاصة مؤسسات خالل من المشتقاتمن عليها التداول ويكون الرسمية المركزية
فقط المنظمة البورصات خاللخالل bull من المشتقات عمليات تتم أن يجب
نفسها البنوك من بدال للبنوك التابعة الوحدات
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
9
المالية األوراق في المستثمرين حماية
أو SECعلى bull المشاكل حول دراسة إعدادومدراء الوسطاء أعمال في الفجوات
االستثمارالمتعاونين bull حماية Whistleblowerقانون
protectionاالئتماني bull التصنيف وكاالت على الرقابة زيادةإلى bull للمستثمرين التعويض سقف رفع
دوالر 250000
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
10
للمستهلكين المالية الحمايةbull المستهلكين لحماية مستقل تأسيسمكتبمؤسسات bull لدى العاملين على ويراقب يشرف
التأجير ومؤسسات والمصارف والودائع التمويلالتمويلي
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
11
الدفع مقابل التسليمالعمودي bull السوق
األفقي bull السوق
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
12
الحالي الوضعالفلوس bull تقاص عن بمعزل األسهم تقاصواألسهم bull مصرفية بكفالة مضمونة الدفعات
حين إلى التداول قبل ومحجوزة موجودةالتسوية
األمين bull للحافظ متواضع دور
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
13
الدفع مقابل التسليم
ϼϣόϟΏΎγΣϟΔϳϟΎϣϟ ϕέϭϷϊϳΑΕΎϳϠϣϋϰϠϋϡΗΗϲΗϟ ΔϳϭγΗϟϭι ΎϘΗϟΕΎϳϠϣόϟϲΣϳοϭΗϡγέ˯
ΔϴϟΎϤϟϕέϭϷϕϮγ(ϊ ϴΑήϣςϴγ Ϯϟ ν ήϋ1 )( 2 )ϊ ΎΒϟ( )ϞϴϤόϟ
)ΕΎϴϠϤόϟάϴϔϨΗ( ϊ ΎΒϟ
ΔϋΎΒρ ϒθϛ (ΏΎδΣ10 )
ςϴγ Ϯϟ ϰϠϋωϮΟήϟ ( 9)
ΏΰϛήϤϠϟϢϬγ Ϸ φϓΎΤϟϢϴϠδΗ (ΔϘΑΎτϤϠϟϞϴϤόϟΎΑϝΎμ Ηϻ ΔϤϴϘϟ ΔϳϮδΘϟϚϨΑϢϴϠδΗ5 )
ϱ ήΘθϤϟφϓΎΤϟϢΛϦϣϭ ϊ ΎΒϟςϴγ Ϯϟ ϻ
Ϊϛ΄Θϟ ( A3 )
3B φϔΣϦϴϣ Ϣόϧ άϴϔϨΘϟ
(ϝϭΪΘϟΕΎϴϠϤϋϢϴϠδΗ4(ΔϘΑΎτϤϟ )6 )
( 7 )ΔΠϴΘϨϟΎΑΰϛήϤϟύϼΑ
ΔϳϮδΘϟ ϭι ΎϘΘϟϭωΪϳϹΰϛήϣ ΔϴϗέϮϟϭΓΪλ έϷΔϳΎϔϛϦϣΪϛ Θϟ ΪόΑ
άϫ DVP ΔΤϔμ ϟήψϧ ΔϴϟΎΘϟ
ΔΠϴΘϧ(ΔϘΑΎτϤϟ8)
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
14
الدفع مقابل التسليم
ϊϳΑϟΕΎϳϠϣϋϲϓΔϘΑΎρϣϟ ϡΩϋΔϟΎΣ ΔϘΑΎγϟΔΣϔλϟέυϧ
ϡόϧ
ϱέΗηϣϟυϓΎΣϟϡϬγϷ ϡϳϠγΗ
ϻ έηϟΎΑΩΑϟT+x( 2)
ρϳγϭϟϱέΗηϣϟ
ϡόϧ( 3 )DVP ίϛέϣϠϟϡϬγϷ ϡϳϠγΗ
ϻ( 4ΔϣϳϘϟϡϳϠγΗ )
έηϟΎΑΔϳϭγΗϟϭι ΎϘΗϟίϛέϣϡϭϘϳ˯ T+y
ϡόϧDVP ϱέΗηϣϟυϓΎΣϟϡϬγϷϡϳϠγΗ
ϻ ϡόϧϝϳϣόϟϭρϳγϭϟϥϳΑΔϳΩϘϧϟ ΔϳϭγΗϟϡΗΗ ϱέΗηϣϟρϳγϭϟϥϣΔϣϳϘϟϡλΧ ϰϬΗϧ
ϪΗϔϟΎΧϣϭΔλΎϘϣϟΕ˯έΟϹΎ˱Ϙϓϭ
ϻ
ΔϴϓΎϛϰϬΘϧ
ΪΟϭϥϕήϔϟ ΩήΘδϳϭ ϪΘϔϟΎΨϣϢΘϳϭ
ΓΪϳΪΟΔϟΎϔϜΑϪΘΒϟΎτϣϭ ΔϴϓΎϛήϴϏ
ϥϮϜΗϒϜΗϢϟϥΔϠϜθϣϲ ο ΎϘΘϠϟ˯ ϮΠϠϟϢΘϳϭ
ϖΤΘδϤϟϕήϔϟΩΩήΘγ ϻ
άϫ DVP ήόδϟϕήϔΑςϴγ ϮϟϢϳήϐΗ-ςϴγ ϮϟΔϔϟΎΨϣ
˯ ήθϟ
˯ ήθϟ
ΔϘΑΎτϤϟΔΠϴΘϧ ( 1)
ϞϴϴδΗΔϟΎϔϜϟ
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
15
Treasury Securities Marketsbull Highly liquidbull Another investment outlet (diversification)bull Usually safe and lowers portfolio riskbull Enables monetary policy through Open Market
Operationsbull A source of government financingbull Helps in building the yield curve and the term
structure of interest rates
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
Primary DealersbullMust be authorized by the Financial regulatory authoritybullUsually registered as a market maker with an exchange
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
17
Primary Dealers commitmentsbull Dealers agree to meet a number of obligationsndash provide appropriate support to the primary issuance
of Government debt ndash On continuous basis dealers are required to ensure
that they contribute to the liquidity of the secondary market (market making)
ndash Provision of data and information to the supervisory entity
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
18
Dealers Licensing Rules (criteria)bull High credibilitybull Experiencebull Adequacybull Risk managementbull Technical aspects (systems procedures hellip)
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
19
AUCTION MECHANICSbull Auctions have constituted the primary means of issuancebull Treasury uses an auction process to sell bonds and
determine their rate or yield (some through a book building exercise)
bull One can participate in an auction and purchase directly through Primary Dealers
bull Then securities can be sold at current market prices through brokers and many financial institutions (inter broker dealer) in the secondary market
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
20
Regulators in Primary marketsbull No cornering of the Market by dealers
(Salomon Brothers)bull Only Licensed dealers can participatebull May be STRIP(ed) (IOPO) by licensed dealers
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
21
Secondary Market Tradingbull Banks transact treasuries amongst themselves
over the telephone or various dealing systems (Mostly OTC)
bull Primary Dealers are committed to making continuous 2-way prices for government bonds
bull STRIPs can be traded in secondary markets
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
22
Dealers Reporting Requirements
bull Daily price reportsbull Daily position reportsbull Weekly turnover reports
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
Treasury Securities Listing Requirementsbull Some countries do others do not have any
listing requirementsbull Countries that list internationally ndash get some kind of credit ratingndash have to disclose fiscal and monetary policies ndash balance of payment informationndash Budgets spending and revenue
23
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
24
Market infra structure for treasuries
bull Issuance legislations (Clearing amp settlement brokers listing rules dealing market making funds regulations disclosures ratings helliphellipetc)
bull Technical requirements systems (trading CSD hellip)
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
25
Sample RegulationsPrimary Dealers- Assume underwriting treasury new issues in
the primary market- Ensure Liquidity in the secondary market
(posting minimum bid-ask quotes)
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
26
Dealers licensing requirements- Licensing regime that ensures (Fit and
Proper requirements)- Funding requirements are available (line of credit
bank guarantee)- Technical skills- Systems and controls (risk management compliance
hellip)- To do(s) and not to do(s)
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
27
Auctions- Only dealers can participate (bidding
process regulated by the CB or MoF)- Participants can bid through such dealersSecondary Markets- Non-centralized market maker system
(brokers + Dealers)- OTC (dealer market only)
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
28
-Auctions requirements- Keep a minimum level of participation (win at least X of
the auctioned amounts)bull Document received orders (do not purchase for clients
without their knowledge)bull Maximum amount not exceed a certain percentage (25-
35 of a certain issue ndash avoid cornering the market)bull Penalties for violators
ndash Suspension + finesndash License cancellation
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
29
bull Secondary Marketbull Dealers and as market makers commit to a
minimum trading volume either as a percentage of traded value or as a percentage of daily
bull Dealers may be allowed to trade with other dealers OTC such trades must be reported to the exchange
bull Dealers trade with others on the exchange onlybull May impose a maximum spread
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
30
bull Reportingbull Dealers reports may includendashTrading reports both on the exchange and
OTC for both money market and capital market instruments (T Bills vs T Bonds)ndashLines of creditndashInventory balancesndashAny other information
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
31
bull Technical abilitiesbull Similar to brokers requirements (eg office
space minimum number of employees technology hellip)
bull Ability to generate reportsbull Compliance and internal auditbull Risk management and credit facilities to clientsbull Management and accounting hellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
32
bull Transaction fees and commissionsbull Specify special trading commissions
and fees that are suitable for treasuries for both brokers and dealers And both for the primary and secondary markets
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
33
bull Other measuresbull Similar to equity markets brokers and dealers
must adhere to certain provisions likendashMargin tradingndash Short sellingndashMarket manipulationndashManaging portfolios without licensendash Cornering the market in the auction phasendashhellip
