What changed
Primary Dealers must now submit underwriting bids for dated government securities electronically through the PMO module of PDO-NDS, replacing the earlier physical submission process. The underwriting commission, previously credited on auction date, will now be credited on the settlement date of the auction payment.
What it means for you
This shift to electronic bidding streamlines the underwriting process and reduces manual paperwork for PDs. The change in commission payment timing may impact cash flow planning, as PDs will receive funds later than before. PDs must ensure they do not submit 'Nil' bids since the system rejects zero amount entries.
What you must do
- Ensure your systems are configured to submit underwriting bids electronically via the PMO module for all dated government securities auctions.
- Update internal cash flow projections to reflect that underwriting commission will be credited on settlement date, not auction date.
- Train staff to avoid submitting 'Nil' bids; if not bidding, simply do not submit any bid in the system.
- Verify that your PDO-NDS access and credentials are active for the PMO module.
Who it affects
Primary Dealers in Government Securities Market, Treasury and operations teams handling government securities auctions, Back-office staff managing settlement and commission receipts
What happens if we accidentally submit a 'Nil' bid?
The system prohibits '0' amount entries, so a 'Nil' bid cannot be submitted. If you do not wish to bid, simply do not submit any bid in the PMO module.
When will we receive the underwriting commission now?
The commission will be credited to your current account on the settlement date of the auction payment, not on the auction date as before.
Does this apply to all government securities auctions?
Yes, this applies to dated government securities auctions conducted under the PMO module of PDO-NDS.