Agence France Trésor (AFT) uses the Banque de France’s services for organising the practical aspects of its debt security auctions and for supervising the settlement and delivery of the auctioned securities.
As an intermediary for AFT and its Primary Dealers, the Banque de France gathers bids from Primary Dealers for each auction, then presents a summary table to AFT with anonymous information on bids. This allows AFT to auction each of its securities.
To carry out its duties successfully, the Banque de France has developed a bespoke, high-security IT system known as TELSAT. Primary Dealers use TELSAT to submit their bids, and AFT uses it to auction government debt securities.
The Banque de France provides this service under contracts signed with AFT and with each Primary Dealer.
In addition, all the financial transactions of the French central government (both disbursements and revenues), as well as those of the Treasury correspondents, are centralised in real time on the Treasury Account – a single account managed by AFT and held at the Banque de France. The Treasury Account records the balance of all the debits and credits on the transaction accounts used by more than 5,000 government accountants.
With this account setup, the Banque de France gives AFT a centralised, real-time view of the Treasury Account so that it can establish forecasts of disbursements and revenues in the medium and long terms, thus optimising cash management for the French government.