Trading on the Secondary Market. 4.2.1 Obligation to Participate in Secondary Market Trading Primary Dealer undertakes to actively participate in Secondary Market Trading in Benchmark Bonds in accordance with the market making requirement defined below, to follow sound trading practices, to maintain a functioning market making system and to ensure liquidity for the Benchmark Bonds. Market making requirements for Benchmark Bonds are as follows: − Primary Dealer undertakes to quote 5 hours per its local business day for all Benchmark Bonds Bonds with a remaining maturity of less than 12 years with minimum EUR 10,000,000 quoted amount. − Primary Dealer undertakes to quote 5 hours per its local business day Benchmark Bonds with a remaining maturity of 12 years or longer with minimum EUR 5,000,000 quoted amount. − Primary Dealer undertakes to maintain the following target bid-offer spreads for different bond buckets (actual quoted spreads may vary subject to market conditions): Bond Bucket Target Spread 1 - 3.5 years to maturity 10 cents 3.5 - 6.5 years to maturity 15 cents 6.5 - 12 years to maturity 20 cents over 12 years to maturity 25 cents Please observe that the above are target spreads, actual criteria for spread compliance in quoting is a target range in each Benchmark Bond, which is based on average market spreads plus one standard deviation. For performance measurement purposes the tightest bid-offer spreads provide the highest score.
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Samples: Primary Dealer Agreement, Primary Dealer Agreement, Primary Dealer Agreement
Trading on the Secondary Market. 4.2.1 Obligation to Participate in Secondary Market Trading Primary Dealer undertakes to actively participate in Secondary Market Trading in Benchmark Bonds in accordance with the market making requirement defined below, to follow sound trading practices, to maintain a functioning market making system and to ensure liquidity for the Benchmark Bonds. Market making requirements for Benchmark Bonds are as follows: − Primary Dealer undertakes to quote 5 hours per its local business day for all Benchmark Bonds Bonds with a remaining maturity of less than 12 years with minimum EUR 10,000,000 5,000,000 quoted amount. − Primary Dealer undertakes to quote 5 hours per its local business day Benchmark Bonds with a remaining maturity of 12 years or longer with minimum EUR 5,000,000 2,500,000 quoted amount. − Primary Dealer undertakes to maintain the following target bid-offer spreads for different bond buckets (actual quoted spreads may vary subject to market conditions): Bond Bucket Target Spread 1 - 3.5 years to maturity 10 cents 3.5 - 6.5 years to maturity 15 cents 6.5 - 12 years to maturity 20 cents over 12 years to maturity 25 cents Please observe that the above are target spreads, actual criteria for spread compliance in quoting is a target range in each Benchmark Bond, which is based on average market spreads calculated excluding the two widest (largest) values plus one standard deviation. For performance measurement purposes the tightest bid-offer spreads provide the highest score.
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