Chapter 2, Article 5 · Commission Decision (EU, Euratom) 2021/625

Contents

Article 5Commitments#

Members of the primary dealer network shall undertake the following commitments:

(a)to buy a minimum weighted average of 0,05% of volumes auctioned by the Union and/or the Euratom on a semi-annual basis in accordance with part A of the Annex;

(b)to comply with the obligation to accurately, timely and integrally report on a monthly basis to the Commission the traded volumes on Union and Euratom debt securities, according to the harmonised reporting format for trading on the secondary European sovereign debt market established by the Sub-Committee on EU Sovereign Debt Markets of the European Union Economic and Financial Committee. The quality of the reporting shall be regularly assessed and the results notified the interested primary dealer. The primary dealer shall be notified if the data provided are not accurate;

(c)to submit a signed copy of the ‘General terms and conditions for European Union primary dealers (‘GTC’);

(d)to ensure that the trading authorisations provided to its trading personnel are quarterly reviewed and validly in force;

(e)to comply with market practices and ethics, in particular

(i)Primary dealers shall comply with conduct rules and highest standards in market practices applicable to their operations on EUR-fixed income business.

(ii)The Commission will evaluate the primary dealers’ conduct during the execution of syndicated transaction and other debt management operations in terms of readiness, market neutrality, orderly and efficient execution;

(iii)Each primary dealer shall notify the Commission immediately of any proceedings initiated against it by a competent authority of a Member State concerning the activity carried out by the primary dealer as credit institution or investment firm referred to in Article 4, point (b)(ii). Each primary dealer shall notify the Commission of any measure or decision taken as a result of these proceedings;

(iv)Each primary dealer shall notify the Commission immediately if the primary dealer or one of its affiliates is convicted of a criminal charge, including tax evasion, or subjected to administrative or disciplinary sanctions, or suspended or excluded from an industry organisation in any Member State;

(v)The primary dealers and their affiliates shall apply measures relating to anti-money laundering (AML) and counterterrorism financing (CTF) in accordance with applicable national and Union laws and regulations in force. If a competent authority of a Member State identifies any AML or CTF deficiencies or imposes any AML or CTF sanction, the primary dealers shall notify the Commission immediately and report on their remedial measures;

(vi)The primary dealer shall ensure not to conclude transactions concerning Union and Euratom debt securities, which would involve any counterparty incorporated or established in a country included in the EU list of non-cooperative jurisdictions for tax purposes or identified as high risk third countries pursuant to Article 9(2) of Directive (EU) No 2015/849 and listed in Delegated Regulation (EU) 1675/2016 or that do not effectively comply with Union or internationally agreed tax standards on transparency and exchange of information and breaches of sanction regimes, in particular restrictive measures under Article 215 TFEU;

(f)to treat all information received from the Commission confidentially.

Defined terms · 8

Show every defined term

affiliate
means any entity belonging to the same group as defined by Article 2(12) of Directive 2002/87/EC.
auction
means the issuance process of the Union and Euratom debt securities based on competitive bids through an auction platform on primary market;
borrowing programmes
means the Union and the Euratom programmes involving borrowing activities on the financial markets, in particular, financial assistance decided in accordance with Regulation (EU) No 407/2010, Regulation (EC) No 332/2002, the Decisions of the European Parliament and of the Council providing macro-financial assistance to various countries on the basis of a provisioning in accordance with Regulation (EC, Euratom) No 480/2009 or Decision (EU) 2020/701, as well as Regulation (EU) 2020/672, the Euratom programme under Decision 77/270/Euratom, and borrowing on the basis of Article 5 of Decision (EU, Euratom) 2020/2053;
credit institution
means credit institution as defined in Article 4, paragraph 1 (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council;
debt securities
means notes and/or short term financial instruments, such as treasury bills, as well as any other financial instrument, issued by the Union and/or the Euratom;
European supranational issuer
means the Council of Europe Development Bank, the European Financial Stability Facility, European Stability Mechanism, the European Investment Bank and the Nordic Investment Bank;
Investment firms
means investment firms as defined in Article 4(1), point 1 of Directive 2014/65/EU of the European Parliament and of the Council;
members of the primary dealer network
means any credit institutions or investment firms fulfilling the eligibility criteria set out in Article 4 and included in the list referred to in Article 11;