Bund Issuance Auction Group
Only credit institutions domiciled in a member state of the European Union can be members of the Auction Group. Membership of the Auction Group Bund Issues is regulated in the Rules of Procedure for Auctions for the Issuance of German Federal Bonds, Five-Year Federal Notes, Federal Treasury Notes and Treasury Discount Paper of the German Government (
Auction procedure - external Link).
To remain a member of the Auction Group a credit 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 who do not reach the required minimum allotment drop out of the Auction Group Bund Issues. There are no other requirements placed on the members of the Auction Group.
39 credit institutions are currently members of the Auction Group Bund Issues (Current Bund Issues Auction Group - external Link).
A list is published each year ranking the members of the Auction Group Bund Issues by share of the weighted issuance volume allotted without stating further details.
The weighting factors will not be changed for at least one year. They apply to both nominal as well as inflation linked bonds of the corresponding segment of (remaining) time to maturity.
The weighting factors will reflect various capital lockup and interest rate risks of German Government Securities of different maturities.
Because of changed market conditions, an adjustment of the weighting factors for 2012 was required. In contrast to the previously applicable factors, not the maturity at issuance but the remaining time to maturity for the assignment of the weighting factor is used.
|
Instrument |
Remaining time to maturity |
Weighting factor |
|---|---|---|
|
Money market instruments |
3 months |
0,25 |
|
6 months |
0,5 |
|
|
9 months |
0,75 |
|
|
12 months |
1 |
|
|
Capital market instruments |
1-3 years |
2 |
|
3-7 years |
5 |
|
|
7-15 years |
10 |
|
|
15-30 years |
20 |
For the affiliation in the Bund Issues Auction Group the end-to-reach limit of 0.05% of the weighted total allocation will be unchanged.
The next ranking list will be published towards the end of 2012.
