Every year, the DSTA appoints a number of Primary Dealers, Single Market Specialists and Commercial Paper Dealers.

Vuurtoren van Marken

Lighthouse of Marken

Image: Outlook 2015

The Dutch State uses the services of Primary Dealers (PDs). These banks are appointed by the DSTA for trading, promotion and distribution of Dutch State Loans (DSLs) and treasury paper (DTCs). A one-year contract is concluded between each PD and the State. PDs have an exclusive right to participate in DSL-auctions and have access to the repo and strip facility of the DSTA. Furthermore they receive a financial compensation depending on the amounts bought in emissions of DSLs. Naturally there are also obligations. PDs are obliged to provide continuous bid and offer prices for Dutch State Loans, the so called quotation obligation. Another requirement is that PDs have to provide monthly reports on their activities on the secondary market.

Single Markets Specialists (SMSs) have the task to promote and distribute DTCs and to contribute to liquidity on the secondary market.

Additional short-term funding requirements are fulfilled by means of a Global Commercial Paper (GCP) programme, which is sold through selected USCP dealers and ECP Dealers (together GCPDs). GCPDs are selected annually from the group of PDs and SMSs.

The contracts and general conditions for PDs, SMSs and GCPDs are available below of this page.

Primary Dealer ranking method

In 2018, the DSTA continues to rank its PDs based on a duration weighted system. The DSTA believes that a weighted issuance ranking provides the right incentives for PDs to achieve a balanced demand for DSLs across different maturities. Furthermore, the weighted issuance method optimally reflects the performance and commitment of a PD vis-à-vis the DSTA, given that bonds with a higher duration entail more risk for a bank and face more challenging market circumstances than shorter-dated bonds. The weighting factors for a given remaining maturity are shown below.

Weights for DSLs by maturity, to be issued in 2018

DSL maturing

   Weighting factor  

In 2018 - 2019

   1

In 2020 - 2022     

   2.75

In 2023 - 2024

   5

In 2025 - 2028

   8.5

In 2029 - 2041

   13.25

From 2042 onwards

   19

Ranking 2017

The primary market performance of PDs, SMSs and CP dealers is reviewed periodically based on the abovementioned ranking method. DTC and CP rankings are based on the unweighted purchase amounts in euro equivalent.

Ranking 2017  (source: Outlook 2018)

Ranking

DSL

DTC

CP

1

Jefferies

ING Bank

Rabobank

2

ABN Amro Bank

Nordea

ING Bank

3

Nordea

ABN Amro Bank

Barclays

4

NatWest Markets

Commerzbank

5

HSBC France

Citigroup

Dealers 2018

The dealers for 2018 in alphabetical order:

PD

SMS

ECP

USCP

ABN Amro Bank

Barclays

Citigroup

Commerzbank

Deutsche Bank

Goldman Sachs

HSBC France

ING Bank

Jefferies

NATIXIS

NatWest Markets

Nomura

Nordea

Rabobank

Société Générale