Changes to order filling procedure for OFZ auctions

The procedure for filling orders at Finance Ministry OFZ auctions is to change from 2 July 2014. The Finance Ministry"s initiative aims to minimise the risk of non competitive orders being filled at prices that differ significantly from the current market conditions.

During the auctions, competitive orders have higher priority than non-competitive orders.

These changes mean that competitive orders are filled starting from the order with the highest price, greater than or equal to the cut off price, until the total volume of filled competitive orders reaches the total volume of bonds on offer at the auction, and (or) until the price reaches the cutoff price determined by the Finance Ministry. Partial filling of competitive orders is also permitted.

Non-competitive are filled thus:

1. The volume of OFZs available to fill non-competitive orders is defined as the difference between the total volume of bonds offered at the auction and the total volume of competitive orders to be filled.

2. If the total volume of non-competitive orders submitted does not exceed the volume of bonds available to fill non-competitive orders, then all non-competitive orders submitted are filled in full.

3. If the total volume of non-competitive orders submitted exceeds the volume of bonds available to fill non-competitive orders, the submitted orders are partially filled, in proportion to their shares of the total volume of non-competitive orders submitted.

4. The filling price for non-competitive orders is determined as the weighted-average price of the filled competitive orders.

Detailed information on OFZ placements in the Main Market sector of the Equity & Bond Market will be provided in due course.

For further information, please contact the Public Relations Department at (495) 363-3232.