The start time for the bidding process is at 10:00 CET on auction day, the deadline for the submission of competitive bids is one hour later at 11:00 CET.
The actual time is given by ADAS to guarantee equal opportunities for all bidders. Only those bids which have been submitted via the electronic auction system before the deadline expires are accepted.
- The bids must be submitted in denominations of Euro 1 million or a multiple thereof containing the yield or the price at which the issuer is willing to accept the nominal amount.
- Multiple bids are allowed. Bids may be modified and submitted up to the deadline as often as desired.
- The minimum total volume a bank is obliged to bid corresponds to the issue size announced by the issuer divided by the number of auction participants. The maximum volume a bank is allowed to bid amounts to 100% of the total issue size. In case of an issue size of Euro 1 billion or above the upper limit for bids is 30 % of the total issue size.
- Bids are subject to a real-time plausibility check to avoid erroneous bids and to guarantee the above mentioned bidding limits.
- Allotment of competitive bids
The bids submitted are ranked according to price in descending order. The allotment of bonds is carried out based on the corresponding prices bid. Bids at the lowest price accepted (cut-off-price) may be subject to pro rata curtailments to provide for a precise representation of the scheduled competitive issue size. On the basis of the actual set of bids all figures are calculated by the electronic system ADAS on a permanent basis.
Allotments per participant (nominal amount, price, amount payable, etc.) and the overall issue results are announced electronically via ADAS immediately after the expiration of the deadline for the submission of competitive bids and the confirmation of the issuer via ADAS.
- Cancellation of an issue
The issuer may cancel an issue up to 12:00 p.m. CET on the day of the auction. In such a case, a new auction date is set for one week later. Since the introduction of electronic auction system in 1998 only one auction has been cancelled by the issuer.