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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 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 Euratom programmes involving borrowing activities on the financial markets; (3) ‘credit institution’ means credit institution as defined in Article 4, paragraph 1 (1), of Regulation (EU) No 575/2013; (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 Euratom; (5) ‘investment firms’ means investment firms as defined in Article 4(1), point 1 of Directive 2014/65/EU; (6) ‘interdealer platform’ means a dealer to dealer electronic trading venue, established in the European Union, as defined in Article 4(1), point (24) of Directive (EU) 2014/65/EU, where primary dealers participate as market makers for secondary market trading; (7) ‘quote’ means firm bid and ask rates or prices placed on interdealer platforms which lead to the automatic conclusion of a transaction if corresponding bid or ask rates or prices have been provided by another participant (central limit order book); (8) ‘members of the primary dealer network’ means any credit institutions or investment firms fulfilling the eligibility criteria set out in Article 4 and included in the list referred to in Article 15; (9) ‘European supranational issuer’ means the Council of Europe Development Bank, the European Financial Stability Facility, the European Stability Mechanism, the European Investment Bank or the Nordic Investment Bank.
Establishment of the primary dealer network
The Union primary dealer network (‘primary dealer network’) shall comprise a group of credit institutions and investment firms that are 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 Union and 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 Union and Euratom debt securities.
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Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.