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Subject matter and scope
1. This Decision establishes the primary dealer network and lays down the eligibility criteria and procedural provisions for the selection of its members as well as the rights and obligations of those members. 2. This Decision applies to any borrowing and debt management activity carried out by the Commission on behalf of the Union and the Euratom, where the Commission selects private financial counterparties.
Definitions
For the purposes of this Decision, the following definitions apply: (1) ‘auction’ means the issuance process of the Union and Euratom debt securities based on competitive bids through an auction platform on primary market; (2) ‘borrowing programmes’ means the Union and the Euratom programmes involving borrowing activities on the financial markets, in particular, financial assistance decided in accordance with Regulation (EU) No 407/2010, Regulation (EC) No 332/2002, the Decisions of the European Parliament and of the Council providing macro-financial assistance to various countries on the basis of a provisioning in accordance with Regulation (EC, Euratom) No 480/2009 or Decision (EU) 2020/701, as well as Regulation (EU) 2020/672, the Euratom programme under Decision 77/270/Euratom, and borrowing on the basis of Article 5 of Decision (EU, Euratom) 2020/2053; (3) ‘credit institution’ means credit institution as defined in Article 4, paragraph 1 (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council ( 13 ) ; (4) ‘debt securities’ means notes and/or short term financial instruments, such as treasury bills, as well as any other financial instrument, issued by the Union and/or the Euratom; (5) ‘members of the primary dealer network’ means any credit institutions fulfilling the eligibility criteria set out in Article 4 and included in the list referred to in Article 11; (6) ‘European supranational issuer’ means the Council of Europe Development Bank, the European Financial Stability Facility, European Stability Mechanism, the European Investment Bank and the Nordic Investment Bank; (7) ‘affiliate’ means any entity belonging to the same group as defined by Article 2(12) of Directive 2002/87/EC ( 14 ) .
Establishment of the primary dealer network
The Union primary dealer network (‘primary dealer network’) shall be a group of credit institutions eligible to participate in the following borrowing and debt management activities of the Commission: (a) the placement of debt securities on the primary capital markets, in particular through auctions and syndicated transactions; (b) the promotion of liquidity of the Union and the Euratom debt securities on the financial markets; (c) the provision of fair advice and market intelligence to the Commission; (d) the promotion and development of the placement of the Union and the Euratom debt securities.
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