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Market History
2002
January
Bank of Russia published official regulations on special features of operations for selling government securities with reverse repurchase obligation as well as on accounting rules for government securities with reverse repurchase obligation.
February
Within the frames of introducing new sales operation to GScs market by Bank of Russia (transactions with government securities with reverse repurchase obligations of 'reverse REPO vs Bank of Russia' type), auctions for bond allocation of issues OFZ No. 29003RMFS and OFZ No. 29004RMFS were held.
Auction results indicated the following allocation (by reverse repurchase sum): of OFZ No. 29004RMFS for 153.777 million RUR
Moreover, in February the Ministry of Finance for the first time published monthly schedule of government securities allocation for 2002. It defined the total amount of issued government securities for 2002 as165 billion RUR, including issue of: GKO — 48 billion RUR, OFZ — 97 billion RUR, government off-market loan bonds — 10 billion RUR, GSO — 10 billion RUR. The Ministry of Finance also planned to issue deprecation bonds for the sum of 40 billion RUR in 2002. Publishing of allocation schedule marked another step in increasing transparency of government securities market.
March
Since March 18, 2002, bond prices in MICEX GScs Trading System in bids for buying/selling of bonds were specified up to one-thousandth of percent (.000) for the purpose of more accurate calculation of bond yield (which is most important for bonds with short maturity periods). This transfer was made in accordance with instruction of Bank of Russia.
May
The first auction for allocation of a new financial instrument — federal bonds with debt deprecation (OFZ-AD) of No. 45001 Issue — was held on GKO-OFZ market. This new instrument turned out to be highly demanded on the market — demand at nominal value at the allocation auctions reached 7 063,360 million RUR, while allocated value accounted for 2 595,632 million RUR.
The limit to enter bids for buying/selling of government bonds with maturity period of more than 7 days and with yield, different from the yield by current weighted average price by more than 25%, was set in MICEX Trading System in accordance with Instruction of the Bank of Russia since May 22, 2002.
August
In order to provide new opportunities for GScs market players and to increase flexibility of cash management, the new schedule of secondary trading on GKO-OFZ market was introduced: from 11:00 a.m. till 01:00 p.m. — the first part of the trading session
This change was made for the purpose of cost-saving per GScs transaction: dealers received an opportunity to conclude deals with cash, directed to the market by the first payment transportation of the current trading day, so previous-day cash reservation regulations became less strict, which is especially vital after weekends and holidays.
December
In order to save costs of market players per trading transaction the step-by-step transfer to "flat" commissioning scale was completed. Since then commissioning fee started to be calculated by a single rate regardless the bond maturity periods. As a result, commissioning fee for 'long" bonds dropped almost thrice.
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Government Securities & Money Market
