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.
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.
|1||BNP Paribas||19||Banca IMI|
|6||Deutsche Bank||24||Danske Bank|
|11||DZ Bank||29||Bayerische Landesbank|
|12||Morgan Stanley||30||Banco Santander|
|16||Royal Bank of Scotland||34||Oddo BHF|
|17||Landesbank Baden-Württemberg||35||Banco Bilbao Vizcaya Argentaria|
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:
|Instrument||Remaining time to maturity||Weighting factor|
|Money market instruments||3 months||0.25|
|Capital market instruments||1-3 years||2|
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.