Belgium

  • Belgium

1 Country overview

MTS Belgium, a division of MTS Associated Markets, has been established for the purpose of trading Belgian sovereign securities.

MTS Associated Markets SA/NV, operates under the supervision of the National Bank of Belgium (NBB).

Shares in MTS Associated Markets SA/NV are held by the list of banks mentioned under item number 6 - Shareholders Institutions.

A Board of Directors, elected by the shareholders, governs MTS Associated Markets SA/NV.

2 Instruments

2.1 Obligation Linéaires (OLOs)

OLOs are medium and long- term debt securities denominated in euro and issued in dematerialized form.

OLOs are issued in tranches, which form a line. Each line has an identical nominal interest rate and maturity. OLOs are issued through a multiple price based auction or alternatively through a syndication and are reimbursed at par.

Currently, OLO securities ranging from 0 to 30 years maturity are traded on MTS Belgium, though only the securities with a maturity longer than 1 year are subject to quoting requirements.

Listed securities subject to quoting requirements are divided into five different maturity buckets:

A (1.25-3.5y)

B (3.5- 6.5y)

C (6.5- 13.5y)

D (13.5y- 17.5y)

E (over 17.5y)

2.2 Belgian Treasury Certificates (BTCs)

BTCs are short-term bills with maturities up to maximum one year.

They are denominated in euro and issued in dematerialized form normally on a bi-monthly basis through a yield- based auction.

Listed securities are divided into three different maturity buckets:

A (up to 3 months)

B (up to 6 months)

C (up to 12 months)

2.3 BPO (strips)

BPO are the principle of stripped OLOs.

2.4 BFR (Belgian Floating Rates)

BFR are variable interest-bearing public government bonds

2.5 BFS (Belgian Fungible Strips)

BFS are bonds which nominal value corresponds to the redemption value of the original OLO.

For a full list of available instruments, click here.

2.6 Minimum lots

OLOs

Depending on the bucket, proposals must be formulated for a minimum quantity equal to EUR 5 or EUR 10 million for benchmark securities and EUR 2.5 or EUR 5 million for liquid securities.

Orders may be made for EUR 2.5 million or multiples of EUR 0.5 thereof (i.e. 3, 3.5 etc)

BTCs

Proposals must be formulated for at least a minimum quantity of EUR 10 million. Orders may be made for EUR 2.5 million or multiples of EUR 0.5 thereof (i.e. 3, 3.5 etc)

BPOs

Proposals must be formulated for at least a minimum quantity of EUR 2.5 million. Orders may be made for EUR 2.5 million or multiples of EUR 0.5 thereof (i.e. 3, 3.5 etc)

BFRs

Proposals must be formulated for at least a minimum quantity of EUR 2.5 million Orders may be made for EUR 2.5 million or multiples of EUR 0.5 thereof (i.e. 3, 3.5 etc)

BFSs

Proposals must be formulated for at least a minimum quantity of EUR 1 million. Orders may be made for EUR 1 million or multiples of EUR 0.5 thereof (i.e. 3, 3.5 etc

3 Participants

For a list of participants, click here.

3.1 Participant requirements

Market makers other than Primary Dealers of Belgian State must have net assets of at least EUR 250 million. Institutions that are not Primary Dealers of the Kingdom of Belgium and that wish to participate in the system as market makers will be asked to demonstrate a significant turnover in Belgian government securities.

Market takers must have net assets of at least EUR 40 million and demonstrate a total turnover in Belgian government bonds of no less than EUR 300 million over the previous twelve months.

4 Market Hours

Cash

Market Hours (CET)

Pre-Market: 7:30am – 8:00am

Trading Hours: 8:00am – 5:30pm

Market Closed: 5:30pm

5 Settlement

Trades on Belgian Government bonds settle at National Bank of Belgium (NBB-SSS). MTS sends Swift settlement instructions on behalf of both participants to NBB-SSS. MTS participants must hold a securities account at NBB-SSS either directly or indirectly through a custodian.

LCH.Clearnet Ltd is available as a Central Counterparty: for CCP transactions MTS sends Swift trade messages on behalf of both participants to LCH.Clearnet Ltd.

The settlement cycle is T+2. The settlement calendar follows the TARGET calendar skipping value date only on TARGET non-business days.

6 Shareholders

Barclays Bank Plc

Belfius Bank

Citigroup Global Markets Ltd

Credit Agricole Corporate and Investment Bank Danske Bank A/S

Deutsche Bank AG

Fortis Bank N.V.

Goldman Sachs International

HSBC France

JP Morgan Securities Limited

ING Bank NV

KBC Bank N.V.

Morgan Stanley and Co. International

MTS S.p.A.

Nordea Bank A/S

Nykredit Bank A/S

Scandinaviska Enskilda Banken

Société Générale

Sydbank A/S

The Royal Bank of Scotland NV

UBS Limited

7 Market Data

Click to view:

Daily bulletins

7.1 Password protected

Click to view:

Participant statistics

8 Contact

Aline Morley

Relationship Management

T: +32 2 210 69 00

Paolo Senes

Chairman

T: +32 2 210 69 00

Jurgen De Corte

Executive Director

T: +32 2 210 69 02

Jean-Pierre Mateza

Associate

T: +32 2 210 69 03

Legal address: Rue des Comédiens, 22 – 1000 Brussels

Group email address: mtsam@mtsam.com

Fax: +32 2 217 84 70