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
phisanu.phromchanya@dowjones.com