LogoRegulatory Alerts
2016-09-01 | 02/17/800/0007/002

Secondary Market Trading of Government Securities and Reporting by Licensed Commercial and Specialised Banks

The Central Bank of Sri Lanka mandates all licensed commercial and specialised banks to conduct outright government securities trades via the Bloomberg FIQ platform starting 15 September 2016. These institutions must report yield rates and trading volumes for over-the-counter transactions exceeding Rs 50 million within thirty minutes of execution, with selling-side banks handling broker-mediated trades. This regulatory framework aims to enhance market transparency and improve price discovery across the secondary government securities market.

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ශ්‍රී ලංකා මහ බැංකුව இலங்கை மத்திய வங்கி CENTRAL BANK OF SRI LANKA

01 September 2016 | CIRCULAR | Ref: 02/17/800/0007/002

BANK SUPERVISION DEPARTMENT

To: All Chief Executive Officers of Licensed Commercial Banks and Licensed Specialised Banks

Secondary Market Trading of Government Securities and Reporting by Licensed Commercial Banks and Licensed Specialised Banks

In order to promote the secondary market for government securities by enhancing transparency in dealings and price discovery, all licensed commercial banks and licensed specialised banks shall comply with the following commencing 15 September, 2016:

  1. Use the Bloomberg Trading Platform (Fixed Income Quotes - FIQ) available for Sri Lanka to: i) Conduct all outright trades with other banks and primary dealers; and ii) Report yield rates and volumes of all outright trades carried out over-the-counter in excess of Rs.50 million, within 30 minutes of each such trade.

  2. In the case of trades carried out through brokers, selling-side banks shall report under 2(ii) above.

[Signature] Director of Bank Supervision

[Signature] Superintendent of Public Debt

6 වන මහල, අංක 30, ජනාධිපති මාවත, | 6 ஆம் மாடி, இல. 30 சனாதிபதி மாவத்தை, கொழும்பு 1 | Level 6, No. 30, Janadhipathi Mawatha, Colombo 1 තැ. පෙ. 590, කොළඹ 01, ශ්‍රී ලංකාව | த. பெ. இல. 590, கொழும்பு 01, இலங்கை | P. O. Box. 590, Colombo 01, Sri Lanka. 📞 94 11 2477100/659 | 📠 94 11 2477711 | 📧 banksup@cbsl.lk | 🌐 www.cbsl.gov.lk

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