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 (EU), the European Economic Area (EEA), in Switzerland or in the United Kingdom. In addition, the requirements of the tender procedure rules must be fulfilled and the conditions of the BBS must be accepted:

Auction rules for the issue of German Federal securities

Special terms and conditions of the Deutsche Bundesbank for auctions of German Federal securities using the Bund Bidding System

In principle, any credit or securities trading institution or investment firm domiciled in the EU, the EEA, Switzerland or UK 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.

36 credit institutions are currently members of the Bund Issues Auction Group. The following ranking corresponds to the weighted amounts allotted in the calendar year 2019.

1 BNP Paribas 19 DekaBank
2 HSBC 20 Rabobank
3 Commerzbank 21 UBS
4 BofA 22 Société Générale
5 Danske Bank 23 NatWest
6 UniCredit 24 Helaba
7 Deutsche Bank 25 Bayerische Landesbank
8 Crédit Agricole 26 Landesbank Baden-Württemberg
9 Goldman Sachs 27 Natixis
10 J.P.Morgan 28 ABN AMRO
11 DZ Bank 29 Scotiabank
12 Citigroup 30 ING
13 Barclays 31 Norddeutsche Landesbank
14 Nomura 32 Banco Bilbao Vizcaya Argentaria
15 Mizuho 33 Bankhaus Lampe
16 Jefferies 34 Nordea
17 Banca IMI 35 Oddo BHF
18 Morgan Stanley 36 Banco Santander

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