Government Securities (Amendment) Regulations 2003

Citation and commencement

1. These Regulations may be cited as the Government Securities (Amendment) Regulations 2003 and shall come into operation on 10th March 2003.

Amendment of regulation 2

2. Regulation 2 of the Government Securities Regulations (Rg 1) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately after the definition of “auction day”, the following definition:

“ “bid yield” means the yield expressed in an application;”;

(b)

by inserting, immediately after the definition of “maturity date”, the following definition:

“ “multiple pricing format” means the manner of allotting Government securities set out in regulation 7;”; and

(c)

by inserting, immediately after the definition of “public notice”, the following definition:

“ “uniform pricing format” means the manner of allotting Government securities set out in regulation 7A;”.

Amendment of regulation 3

3. Regulation 3 (7) of the principal Regulations is amended by deleting the words “yield of the Government securities” and substituting the words “bid yield”.

Deletion and substitution of regulations 6 and 7 and new regulation 7A

4. The principal Regulations are amended by deleting regulations 6 and 7 and substituting the following regulations:

“Manner of allotment of Government securities

6.—(1) The Authority may allot Government securities under a multiple pricing format or a uniform pricing format as may be specified in the public notice for the issue of the Government securities.

(2) In respect of any issue of Government securities —

(a)

each primary dealer is limited to making, on its own behalf, one application on a non-competitive basis to purchase not more than 1% of the issue;

(b)

each person, other than a primary dealer, is limited to making one application on a non-competitive basis to purchase not more than —

(i)	$1 million in the case of securities having a maturity of one year or less; or
(ii)	$2 million in the case of securities having a maturity of more than one year;

(c)

not more than 40% of the issue shall be allocated by the Authority to applications made on a non-competitive basis; and

(d)

notwithstanding any other provision in these Regulations —

(i)	each primary dealer shall not be allotted more than 30% of the issue; and
(ii)	each person, other than a primary dealer, shall not be allotted more than 15% of the issue.

Allotment under multiple pricing format

7.—(1) Subject to these Regulations, Government securities that are to be allotted under a multiple pricing format shall be allotted in accordance with paragraphs (2) to (8).

(2) Government securities shall be allotted to applications made on a non-competitive basis in priority to all applications made on a competitive basis.

(3) Where there are insufficient Government securities allocated in respect of the issue to allot such securities in full in accordance with paragraph (2) to the applications made on a non-competitive basis, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(4) The balance of Government securities of the issue remaining after allotment under paragraph (2) or (3), as the case may be, shall be allotted to applications made on a competitive basis in ascending order commencing from the application expressing the lowest bid yield to the application expressing the highest bid yield.

(5) Subject to paragraph (6), where there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to any application made on a competitive basis, the amount of Government securities available for allotment shall be allotted to the application.

(6) Where 2 or more applications made on a competitive basis express the same bid yield, and there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to the applications, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(7) The yield for each successful application made on a non-competitive basis shall be that equal to the weighted average of the bid yields in the successful applications made on a competitive basis.

(8) The yield for each successful application made on a competitive basis shall be the bid yield in the application.

Allotment under uniform pricing format

7A.—(1) Subject to these Regulations, Government securities that are to be allotted under a uniform pricing format shall be allotted in accordance with paragraphs (2) to (7).

(2) Government securities shall be allotted to applications made on a non-competitive basis in priority to all applications made on a competitive basis.

(3) Where there are insufficient Government securities allocated in respect of the issue to allot such securities in full in accordance with paragraph (2) to the applications made on a non-competitive basis, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(4) The balance of Government securities of the issue remaining after allotment under paragraph (2) or (3), as the case may be, shall be allotted to applications made on a competitive basis in ascending order commencing from the application expressing the lowest bid yield to the application expressing the highest bid yield.

(5) Subject to paragraph (6), where there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to any application made on a competitive basis, the amount of Government securities available for allotment shall be allotted to the application.

(6) Where 2 or more applications made on a competitive basis express the same bid yield, and there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to the applications, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(7) The yield for each successful application, whether made on a competitive or non-competitive basis, shall be that equal to the highest bid yield in any successful application made on a competitive basis.”.

Deletion of regulation 9

5. Regulation 9 of the principal Regulations is deleted.

Amendment of regulation 10

6. Regulation 10 of the principal Regulations is amended by deleting paragraph (3) and substituting the following paragraph:

“(3) Where no interest rate is stated in the public notice for the issue of the Government securities, the interest rate of Government securities shall be —

(a)	equal to the weighted average of the bid yields expressed in all applications made on a competitive basis that were successful, rounded down to the nearest one-eighth percent, where the Government securities are allotted under a multiple pricing format; or
(b)	equal to the highest bid yield expressed in any application made on a competitive basis that is successful, rounded down to the nearest one-eighth percent, where the Government securities are allotted under a uniform pricing format.”.

[G.N. Nos. S 7/2002; S 35/2002; S 172/2002]

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