The Banque de France

Agence France Trésor (AFT) relies on Banque de France staff for the practical organisation of Treasury security auctions and oversight of the settlement process for the securities sold.

Acting as an intermediary between AFT and primary dealers, Banque de France receives the primary dealers’ bids and then compiles an anonymous summary of the orders and presents it to AFT, which uses it to allocate each security.

Banque de France has developed a computer system to perform this task successfully. It is a dedicated and highly secure remote bidding system for Treasury auctions called TELSAT (Système de Télétransmission des soumissions aux adjudications du Trésor). Primary dealers use the system to submit their bids and AFT uses it to allocate Treasury securities.

The Banque de France provides this service under the terms of separate agreements with AFT and each primary dealer.

Furthermore, all of the State’s financial flows (expenditure and revenue), along with the Treasury Correspondents’ flows are centralised and processed in real time through a single account held with Banque de France and managed by AFT. The single account records all of the financial movements executed by more than 5,000 public accountants who each use one or more transaction accounts.

This structure enables Banque de France to provide AFT with a centralised, real-time view of the Treasury's single account so that AFT can make medium-term and long-term forecasts of expenditure and financing in order to optimise the State's cash management.