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) or Switzerland, and fulfil the requirements of the "Auction rules for the issue of German Federal securities". 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, the EEA or Switzerland 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.
35 credit institutions are currently members of the Bund Issues Auction Group. Since 1 January 2020, Banco Santander is no longer a member. 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:
| 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 | |
| 15-25 years | 15 | |
| 25-35 years | 20 |
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 35 members of the Bund Issues Auction Group