itb fast tendering procedure

Upload: jcsk

Post on 07-Apr-2018

223 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/6/2019 ITB FAST Tendering Procedure

    1/5

  • 8/6/2019 ITB FAST Tendering Procedure

    2/5

  • 8/6/2019 ITB FAST Tendering Procedure

    3/5

    Intervention

    2.7 The Bank has the right to intervene, if necessary, during the process of

    tendering by;

    a) Downsizing or upsizing the total issue size

    b) Capping the maximum single allotment limit on each bidder. The

    maximum allotment limit is the maximum successful amount that will

    be allotted to a single bidder

    c) The Bank has the right to implement other types of intervention

    method, which are not stated in this guideline.

    d) The Bank also has the right to abort/cancel the tender.

    Tender Results and Settlements

    2.8 After allotment process in FAST, the tender results will be broadcasted

    through BIDS and information providers such as Reuters, Bridge and

    Bloomberg. Once tender process is confirmed, FAST will generate the

    General Results and Individual Results.

    2.9 General results are accessible to all FAST and BIDS members. For

    Individual Results, only the direct members can retrieve their own

    results. Non-FAST members are to confirm their individual results

    manually with the direct members that they have submitted their bids

    through.

    2.10 All successful direct bidders will be able to print the sale confirmation

    and purchase confirmation based on the successful rates and terms.

    Direct bidders shall fax the confirmation to successful indirect bidders.

    2.11 The tender results will be interfaced with RENTAS for allotment of

    securities and funds transfer. The securities allotment and funds

    transfer will be done in accordance to RENTAS Rules.

    3

  • 8/6/2019 ITB FAST Tendering Procedure

    4/5

    3. Others

    3.1 Trading of ITB

    ITB will be traded based on the principle of Bai aldayn. Bai al-dayn

    refers to the sale of a debt arising from a transaction in the form of a

    deferred payment sale. The secondary market trading of ITB will be in

    terms of yield. Therefore the banding system, which is associated with

    Malaysian Treasury Bills is also applicable to ITB.

    3.2 Status

    In Real-Time Gross Settlement (RTGS) System, ITB will be accorded asa Government paper status.

    3.3 Legality of ITB

    In order to manage the legal risk that may be implicated in the issuance,

    holding, and trading of ITB and to protect the Bank's interest, all

    participants are required to understand the Sale and Purchase

    agreement which is incorporated in FAST system, to establish the

    parties' rights and obligations relating to ITB.

    4

  • 8/6/2019 ITB FAST Tendering Procedure

    5/5

    The Issuance Process of ITB

    4. Through the sale and purchasetransaction, a debt has been created.This debt is securitized through theissuance of ITB

    1. Identify Assets

    3. Government buy backthe Certificate ofGovernment assets atpar value (100.00) to bepaid on credit term

    2.Sell assets on a tenderbasis

    5

    Go

    vernme

    Certificate ofGovernmentAssets

    IslamicBankingInstitutions

    ITB