The following revisions to the rules and procedures of SGS auctions will take effect on 9 Sep 02:
(1) Non-Competitive Bidding at SGS Auctions
Non-competitive bidding will henceforth be admitted for SGS Treasury bill auctions. SGS investors will also be able to submit non-competitive bids at Treasury bill auctions, instead of just at bond auctions as was the case previously. Non-competitive bids, which have priority in allocation over competitive bids, are bids submitted by applicants who want to be allotted SGS at the average price computed based on the prices of successful competitive bidders at the auction. In addition, the existing limit for non-competitive bidding at SGS auctions will also be increased. Each Primary Dealer will now be allowed to submit a non-competitive bid of up to 1% of the SGS issue on offer. For non-Primary Dealers, the limits for non-competitive bids will be S$1 million per applicant for Treasury bills and S$2 million per applicant for bonds. The total amount of non-competitive bids in any SGS auction, including MAS' non-competitive bid if any, is capped at 40% of the issue on offer. If the amount exceeds 40% of the issue on offer, the amount of SGS allotted to each non-competitive bidder will be pro-rated.
(2) Change in SGS Auction Allocation Limits for Primary Dealers
The allocation limit of Primary Dealers at SGS auctions has been revised and will be increased from 20% to 30%. Primary Dealer may now obtain a maximum of 30% of any issue on offer. The allocation limits of non-Primary Dealers at each auction will remain at 15%. These allocation limits will apply to both SGS Treasury bill and bond auctions, and will include the amount alloted through non-competitive bids.
For an overview of SGS Auctions click here.
| 
