|
|||
2009-06-26 11:24:04 CEST 2009-06-26 11:25:04 CEST REGULATED INFORMATION Íbúðalánasjóður - Company AnnouncementSigning of Agreements Regarding Issuance and Market Making in HFF bondsYesterday June 25th, the Housing Financing Fund (HFF) signed agreements regarding Issuance and Market Making in HFF Bonds. The objective of the agreements is to enhance the HFF access to borrowed money and strengthen price formation in the secondary market. As of July 1st, 2009, six financial institutions have been appointed as “Primary Dealers in HFF bonds”. They are: Nýi Glitnir banki hf., Nýi Kaupþing banki hf., MP banki hf. og NBI hf. The following bullet points describe the main content of the Agreement: Primary Dealers have exclusive rights to submit bids at HFF auctions Primary Dealers have exclusive access to HFF Securities Lending Facility. Primary Dealers are obliged to submit bids in each auction for a minimum amount of ISK 600 million at nominal value. Primary Dealers are obliged to quote on OMX Nordic Exchange in Iceland bid and ask offers for at least ISK 100 million at nominal value in each HFF bond classes. Primary Dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements. Primary Dealers are obliged to renew their offers within ten minutes after execution of transaction. If the Primary Dealer's total transaction in one series during that day equals ISK 500 million at nominal value, the Primary Dealer is permitted to withdraw from the maximum spread requirement for that particular series for the remainder of that day. The agreement is valid from July 1st 2009 to June 30th 2010. Total remuneration paid to all Primary Dealers is ISK 16. 25 million for the duration of the agreement for the market making part and 0,15% fee is determined from the market share of accepted auction bids. A sample agreement is attached that provides comprehensive information on the Primary dealer's rights and obligations |
|||
|