Thai MOF Names 13 Institutions Primary Dealers in Bond Market

   By Phisanu Phromchanya 
 

BANGKOK--The Ministry of Finance said Friday has appointed 13 private financial institutions as its primary dealers to act as market makers in both the primary and secondary bond markets, effective Oct. 1.

The selected institutions are Bangkok Bank, Kasikornbank, KGI Securities (Thailand), Krung Thai Bank, Siam Commercial Bank, TMB Bank, and the Bangkok branches of BNP Paribas, Citibank, Deutsche Bank, HSBC, JP Morgan, Royal Bank of Scotland and Standard Chartered Bank.

Each primary dealer is required to take up no less than 5% of the total offering at government auctions of benchmark bonds with maturities of three, five, seven, and 10-year tenors. The dealers must also maintain trading activity in the secondary bond market at a level that is 5% or more of market turnover.

The dealers can participate in exclusive auctions of certain government bond issues, and will be among the Ministry of Finance's preferred trading partners when the ministry conducts any transactions in the bond market.

They will also advise the ministry in the planning of its bond offerings.

Write to Phisanu Phromchanya at [e-mail]