Bund Issues Auction Group

The Bund Issues Auction Group comprises credit institutions that have been approved by the Finance Agency as participants in the auctions of German Government securities.

To become a member, applicants must be domiciled in a member state of the European Union and fulfil the requirements of the "Auction rules for the issue of Federal bonds, five-year Federal notes, Federal Treasury notes and Treasury discount paper". Furthermore, the "Special terms and conditions of the Deutsche Bundesbank for auctions of German Federal securities using the Bund Bidding System" must be accepted.

In principle, any credit or securities trading institution or investment firm domiciled in the EU can become a member of the Bund Issues Auction Group. The membership requirements are structured very liberally.

In structuring its issue process, the Federal Government adopts an overall very liberal approach with respect to the bidding banks. For example, to remain a member of the Auction Group a financial institution must subscribe to at least 0.05% of the total issuance allotted at the auctions in a calendar year weighted according to maturity. Members that do not meet this minimum take-up amount are removed from the group at the end of the year.

Ranking

The names of the bidder banks are published every six months in ranking lists based on their allotments in the auctions. The individual issues are weighted according to the capital lock-up periods.

A ranking list of the members of the Bund Issues Auction Group is published every six months at the end of June and December. It is sorted by the share of the weighted issuance volume allotted without stating any further details.

The following 36 credit institutions are currently members of the Bund Issues Auction Group. Their rankings correspond to the weighted amounts allotted in the first half of 2017.
 

1BNP Paribas19Banca IMI
2Commerzbank20Rabobank
3HSBC21 ABN AMRO
4Nomura22Natixis
5UniCredit23ING
6Deutsche Bank24Danske Bank
7Citigroup25Helaba
8Goldman Sachs26DekaBank
9Barclays27UBS
10J.P.Morgan28Norddeutsche Landesbank
11DZ Bank29Bayerische Landesbank
12Morgan Stanley30Banco Santander
13Société Générale31Scotiabank
14Merrill Lynch32Mizuho
15Crédit Agricole33Jefferies
16Royal Bank of Scotland34Oddo BHF
17Landesbank Baden-Württemberg35Banco Bilbao Vizcaya Argentaria
18Bankhaus Lampe36Nordea

Weighting factors

For the ranking list, the auction allotments are weighted as last announced on December 10, 2014 according to the remaining time to maturity of German Government securities:

 

InstrumentRemaining time to maturityWeighting factor
Money market instruments3 months  0.25
6 months  0.5
9 months  0.75
12 months  1
Capital market instruments1-3 years  2
3-7 years  5
7-15 years10
15-25 years15
25-35 years20

The weighting factors remain unchanged for at least one year and apply to both nominal and inflation-linked German Government securities of the corresponding remaining time to maturity segment. The weighting factors reflect various capital lock-up and interest rate risks of German Government securities of different maturities.

List of the current 36 members of the Bund Issues Auction Group (PDF)