19 December 1996: MATIF SA lowers the coupon of its 10-year Notional contract

This page is an archive, only available in English and French.

As part of the preparations of the Paris financial markets to the single currency, the Ministry of the Economy and Finance herewith announces that MATIF SA has decided to lower the coupon of its 10-year Notional contract to 5.5% from the December 1997 maturity onwards. New admission rules for eligible securities are adopted.

From December 1997 maturity onwards, opened on 17 December 1996, the specifications of the Notional bond futures contract are modified as follows:

  • its coupon is reduced from 10% to 5.5%
  • the remaining life of deliverable bonds, which was previously between 7 and 10 years, is 8.5 to 10.5 years
  • the admission rules of eligible securities are modified:

           - the minimal total outstanding to admit a new bond is FRF 40 billion, instead of FRF 5 billion previously

           - the final list of deliverable bonds is fixed one month ahead of the settlement/delivery date of the delivery month instead of 5 months previously

This key reform meets the needs of the French bond market operators for a 10-year reference.

They will thus trade a hedging instrument more adapted to the French Treasury issuing policy and aligned with international standards.