Nasdaq Vilnius Primary Dealers

Lithuanian government debt security auctions are taking place on the Nasdaq trading platform.

Participation in government debt securities auctions

Only those banks and financial brokerage companies which meet the requirements set by Ministry of Finance of the Republic of Lithuania for auctions participants, and have signed Government Securities (GS) Auction Participant Agreement with the Ministry of Finance of the Republic of Lithuania are admitted to participate at the Lithuanian government debt securities auctions. Primary dealers have the role of a market expert and an intermediary, purchasing securities on investors’ behalf in primary placement auctions.

List of current primary dealers

Citadele Banka (CTD)
Luminor Bank (DNBV)
SEB Bankas (VLB)
Swedbank (SWBV, SWBR)
Siauliu bankas (SLB)
Erste Group Bank AG (ERST)

Main obligations of primary dealers

To submit competitive bids, corresponding to market conditions, for each GS auction and purchase at least 1 per cent of all GS sold in auctions each quarter;
In at least one generally recognized and used information/ trading system continuously announce bid and ask yields of all GS it has and the amount of GS purchased and sold at the indicated yields;
To provide reports on transactions in GS to the Ministry of Finance of the Republic of Lithuania.

Applying for a primary dealer status

An enterprise willing to become the primary dealer of Lithuanian GS shall comply with the following:

Be a member of Nasdaq Vilnius with access to GS submarket;
Be a participant of either Nasdaq CSD SE, or have an agreement with a participant of Nasdaq CSD SE for settlement procedure;
Provide Ministry of Finance of the Republic of Lithuania with the documentation set in the Requirements for auction participants.

More information available on the Ministry of Finance of the Republic of Lithuania website

https://finmin.lrv.lt/en/competence-areas/state-debt-management/government-securities/government-securities-auctions/pd

Auctions in detail

Competitive multi-price auction – Bidders may enter one or several bids, specifying the yield in each order. The organizer of the auction then sets the maximum yield until which the submitted orders will be executed.
Non-competitive or fixed-rate auctions – The organizer of the auction sets the yield and the issue of debt securities is distributed in proportion to the bids entered by auction participants.