FROM PAGE B1

Primary dealers must maintain quarterly success ratios of at least 60 percent of their bidding obligations or as determined by the Finance Division from time to time.

The guidelines also include some requirements for primary dealers in the primary market.

They must ensure that sufficient funds are available in their respective current accounts maintained with the BB on the auction date.

In the case of a primary auction, the bidding amount for a single bidder shall be fixed up to 75 percent of the issued amount or as determined by the Finance Division from time to time.

Primary dealers will have to maintain separate books of accounts for their primary dealer business and establish a separate window for providing client services or other services as specified by the BB from time to time to the investors of government securities.

They should facilitate investors in trading government securities on the stock exchange along with the BB’s trading platform.

The Finance Division will annually evaluate the performance of primary dealers, in consultation with the BB, and continuation of their business shall depend on performance evaluation and compliance with the guidelines.

Primary dealers will have to submit periodical statements or reports to the Finance Division and provide an implementation report of their annual development plan on a quarterly basis.

The Finance Division, in consultation with the BB, may suspend or cancel a primary dealership for any violation of the regulatory guidelines.

The same could occur for failure to meet performance criteria on an ongoing basis, or for repeatedly providing bids and offers that are not reasonably competitive based on market conditions.