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Belgian Debt Agency
 

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WHAT ARE THE PRINCIPLES GOVERNING AN OLO AUCTION ?

picture question markAuctions are based on the prices offered by bidders.

The amount per bid should be a multiple of  EUR 1 million with a minimum of EUR 10 million.

The Treasury sets a minimum price. All bids submitted at prices higher than this minimum price are allotted for their full amount.

Allocations in response to bids submitted at the minimum price chosen by the Treasury may be proportionally scaled down, in which case the amounts thus reduced are rounded up to the next tranche of EUR 1 000 000 with a minimum of EUR 10 000 000 per bid.

picture clockTIMELINE...

topic D : day of the auction of the competitive bids

topic Monday preceding D : Auction announcement
Auctions are normally announced on the Monday preceding the auction after 5:00 PM. The Debt Agency's pages on Reuters and Bloomberg mention the OLO lines - usually two or three - that will be reopened.

topic Friday before D : Announcement of the range
On the Friday morning before the auction, the Treasury announces also the range of the global nominal amount to be auctioned, all lines together.

topic D : Submission of the bids
On the day of the auction, competitive bids are submitted from 11:30 AM onwards until 12 noon at the latest. The auction results are normally published a few minutes after cut-off time of the bidding process.

topic Thursday following D : Ordinary non-competitive subscriptions
Participating in ordinary non-competitive subscriptions is an advantage granted to Primary Dealers. Ordinary non-competitive subscriptions take place between 11:30 AM and 12 noon. Non-competitive bids are submitted at the weighted average price of the auction.

topic Monday following D : Special non-competitive subscriptions
The Primary Dealers entitled to special non-competitive subscriptions have to submit their bids between 11:30 AM and 12 noon. Non-competitive bids are submitted at the weighted average price of the auction.

topic Settlement
Settlement of the competitive bids and of the Ordinary non-competitive subscriptions take place on the third Target operating day following the auction through the National Bank of Belgium Securities Settlement System (NBB SSS). Settlement of the special non-competitive subscriptions take place on the day of the Special non-competitive subscriptions.

MARKET CONVENTIONS : The amount to be paid is the price of the bids plus accrued interest which is calculated on an "actual/actual" basis.

Reimbursement upon maturity : The National Bank of Belgium is the paying agent throughout its clearing system.
  

Last Update : 25-10-2010
For more information, please contact :
phone number +32 (0)2 282 61 26, phone number +32 (0)2 282 61 21

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