Wednesday 26.May 2010
The Municipality Credit Iceland Plc. (MCI) has signed an agreement with Saga Capital Investment Bank regarding Issuance and Market Making in bonds issued by the MCI. The objective of the agreements
is to enhance the MCI access to borrowed money and strengthen price formation in the secondary market.
The agreement is valid from May 26, 2010 and with it Saga Capital has been appointed as Primary Dealer in MCI Bonds. The following bullet points describe the content of the Agreement:
- Primary Dealers have exclusive rights to submit bids at MCI auctions.
- Primary Dealers are obliged to submit bids at each auction for 100 m.kr. nominal value.
- Primary Dealers have exclusive access to MCI Securities Lending Facility.
- Primary Dealers are Market Makers in the secondary market for LSS24 bonds and are obliged to quote on Nasdaq OMX in Iceland bid and ask offers for at least 50 m.kr. nominal value in each bond.
- Primary Dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements.
- Primary Dealers are obliged to renew their offers within fifteen minutes after execution of transaction. If the Primary Dealer's total transaction in one series during that day equals 200 m.kr. at nominal value, the Primary Dealer is permitted to withdraw from the maximum spread requirement for that particular series for the remainder of that day.
