PRIMARY DEALERS
The system of Primary dealers was established in 2013. It is the key instrument that allows the Debt and Liquidity Management Agency (ARDAL) to conduct issuance and distribution of Government securities on behalf of Ministry of Finance. The cooperation between ARDAL and Primary dealers is described in bilateral agreements that include the Right and Duties of Primary Dealers and Rules of ARDAL for trades on primary and secondary market of the Government debt securities.
Primary and Recognized Dealers have rights and duties that are slightly different based on the fact whether the particular dealer has the right and intention to be Primary dealer or his cooperation is only on Recognized dealer level.
The performance of particular dealer is regularly monitored and evaluated.
The main rights and duties of Primary dealer (detailed rights and duties description is available in the contractual documentation here):
Primary dealers have the right to:
- participate on the primary and secondary market with government debt securities that is organized by the ARDAL,
- use the title ’Primary Dealer of the Slovak Government Debt Securities’,
- be addressed in preference in case of other financial needs of state,
- bid for a non-competitive sale of the Government Debt Securities (GDS).
Primary dealers have the duty to:
- participate in an auction of the GDS independently of other participants in auctions,
- achieve at least 3% of the GDS weighted by tenor sold via auctions within the calendar year,
- support liquidity of the secondary market in the GDS and shall abstain from activities incompatible with this obligation, - quote bid/ask prices of GDS on secondary trading platform MTS Slovakia.