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Relations between Primary Dealers and AFT
The new charter and the new selection of primary dealers (SVT)
Mr Thierry Breton, the French minister of the economy, finance and industry, has approved the new charter, governing relations between the primary dealers (SVT) and Agence France Tresor.
This document was prepared by AFT and the SVTs and replaces the former charter drawn up in 2003. Thierry Breton underlines the fact that the new joint document confirms the quality of the organization of the market in Treasury bonds and its status as Europe's reference market. This new charter fulfils three objectives:
- Confirming the importance of the presence of SVTs activity in France. Beside the fact that SVT must designate a permanent representative and an economist resident in France, the scope and the evolution of their activities in France is recognised as an important element which contributes to the quality of their service.
- Reinforcing the requirements in terms of means and results of the security of market operations, especially with regard to their settlement. Under the charter, the SVTs and the State are required to remove any secrecy surrounding operations in order to be able to act effectively in a face of difficulties. This is the first time in Europe.
- Setting out the evaluation criteria of SVTs. Their services are evaluated as in the past, according to their activities on the primary and secondary market and the quality of their services. The new charter states that quality of service includes the operational security of SVTs, the pertinence of their advice, their research and their commercial support and lastly, the presence in France and respect of the code of ethics.
In order to guaranty transparency and public information, the new charter will be published in full on the AFT website.
Selection of the primary dealers team
Mr Thierry Breton, the minister of the economy, finance and industry, has also given approval to a new team of primary dealers (SVTs), on recommendations by a Selecting Committee and by the Permanent Head of the Treasury. The selected establishments have a three-year renewable term, in compliance with the new Charter for their activity.
The following SVTs have been given a new term:
ABN Amro, Barclays Capital, BNP-Paribas, Ixis CIB, Calyon, Citigroup, Crédit Suisse, Deutsche Bank, Dresdner Kleinwort, Goldman Sachs, HSBC, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Natexis-Banques Populaires, Nomura, Royal Bank of Scotland, Société Générale, and UBS.
Bank of America has become SVT with the recent selection and UBM did not wish to apply for a new term.
After a one-year period, the newly 21 selected SVTs will discuss the development of their operations as primary dealers with Agence France Trésor.
Press office : 33 1 53 18 33 80
Thierry Breton ‘s press office : 33 1 53 18 41 35