Regulatory Alerts2001-01-01
Introduction of Multiple Pricing for Treasury Bills
The Bank of Zambia mandates the reintroduction of multiple price (Dutch) auctions for Treasury bills, effective with Tender 13/2001 on 22 March 2001, replacing the previous marginal price auction system. Under the new framework, successful bidders will receive securities at their bid prices, with cut-off bids prorated to match advertised portfolio amounts, while all subsequent transactions must reference the original auction number and purchase price. Commercial banks and authorized dealers must also utilize the updated book entry system's multiple collateral accounts and submit daily electronic customer holding returns via email to the Securities Division.
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