Notice 761 Obligations of Primary Dealers (SGS)

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MAS NOTICE 761
27 September 2021
NOTICE TO PRIMARY DEALERS
GOVERNMENT SECURITIES ACT, CAP 121A
OBLIGATIONS OF PRIMARY DEALERS
1 Scope
This Notice is issued pursuant to section 29C of the Government Securities Act (Cap 121A) (“the Act”), and governs the roles and responsibilities of primary dealers in the Government securities and public debt securities market. This Notice applies to all primary dealers appointed under section 29A of the Act. [MAS Notice 761 (Amendment) 2021] 2 Definitions
2.1 In this Notice –
“effective two-way price” in relation to a Government securities or public debt securities transaction, means a dual price quotation which would include both a bid price and an offer price that a primary dealer will honour for a particular Government security or public debt security. [MAS Notice 761 (Amendment) 2021]
2.2 The expressions used in this Notice shall, except where expressly defined in this
Notice or where the context otherwise requires, have the same respective meanings as in the Act.

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3 Participation in Government Securities or Public Debt Securities Auctions
3.1 A primary dealer shall apply to take up Government securities and public debt
securities in every invitation by public notice to take up such securities under the Act and the Significant Infrastructure Government Loan Act 2021.
3.2 At every auction of Government securities or public debt securities, a primary
dealer shall apply for at least 1/x of the Government securities or public debt securities issuance amount, where x is the number of primary dealers appointed under section 29A of the Act, as set out at the MAS’ internet website at https://www.mas.gov.sg. [MAS Notice 761 (Amendment) 2019] [MAS Notice 761 (Amendment) 2021] 4 Market Making
4.1 A primary dealer shall quote effective two-way prices for every sale and
repurchase agreement of Government securities or public debt securities, and every outright purchase or sale transaction of Government securities or public debt securities, under all market conditions, when requested to by another counterparty. [MAS Notice 761 (Amendment) 2021] 5 Effective Date This Notice shall take effect on 28 September 2021. Notes on History of Amendments

1. MAS Notice 761 issued on 13 September 2010, with effect on 13 September
3. MAS Notice 761 (Amendment) 2019 with effect from 17 December 2019.
4. MAS Notice 761 (Amendment) 2021 with effect from 28 September 2021.