Latvian Government Debt Securities Primary Placement Procedure Changes Starting February 11, 2013

2/11/2013 2:31 AM EST

NASDAQ OMX Riga
Announcement from the exchange

Latvian Government Debt Securities Primary Placement Procedure Changes Starting
February 11, 2013

To facilitate the development of the government debt instrument market as well
as to reduce the risks associated with government debt servicing as of February
11, 2013, the Treasury changes the procedure for buying government debt
securities through introducing a primary dealer system. 

With the introduction of primary dealer system, only those NASDAQ OMX Riga
members who have signed an agreement with the Treasury about participating in
the primary placement and repurchase of government debt securities will be
admitted to the government debt securities auctions. 

Primary dealer functions shall also include secondary market making and
organization. It is anticipated that both bid and ask orders for designated
government debt securities will be available on the NASDAQ OMX Riga trading
system or other electronic trading platforms. Both buy and sell prices will be
quoted. 

List of NASDAQ OMX Riga members that have signed the respective primary dealer
agreement with the Treasury: 

  1. AS Citadele banka (primary and secondary market organization)
  2. AS DNB banka (primary market organization) and AB DNB Bankas (secondary
     market organization)
  3. Nordea Bank Finland Plc (primary and secondary market organization);
  4. AS SEB banka (primary and secondary market organization)
  5. AS Swedbank (primary and secondary market organization)

Latvian government securities market has all the preconditions for the
introduction of a primary dealer system and it is expected to reduce the
refinancing risk of government domestic debt, facilitate the expansion of the
investor base, ensure more active secondary trading of government securities,
and promote the creation and use of new government borrowing instruments. 

Read more about the primary dealer system on the Treasury website:
http://www.kase.gov.lv/l/primary-dealers/7882. 






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