BA-205 · Lesson 11 of 11

Government securities at BIMx

Learn which government securities can be traded on the BIMx Regulated Market, how they are admitted and what costs are involved.

9 min read Intermediate Municipal Bonds and Government Securities at BIMx
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BA-201 · The Issuer's Guide: The Listing ProcessWhy list a companyListing on BIMx: the Regulated Market or the MTFPreparing the company for listingThe prospectus and documentationThe public offering and admission to tradingObligations after listing
BA-204 · Admission to BIMx in PracticeShares on the Regulated Market: requirements, file, stagesShares on the MTF: the Agreement in Principle and actual admissionIssuers listed on the BVM: how they reach BIMx
BA-205 · Municipal Bonds and Government Securities at BIMxMunicipal bonds at BIMxGovernment securities at BIMx

What they are and which ones come to BIMx

Long-term VMS can be admitted to the BIMx Regulated Market under Law No. 171/2012 on the Capital Market and the special regulations for VMS. Treasury bills and other VMS with a maturity of up to one year are not covered by this procedure.

Admission by right

The BIMx Rules provide that VMS are admitted to trading by right, in the dedicated category, upon receipt of the issue document or prospectus and the other documents. Admission takes place at the initiative of the issuer, i.e. the Ministry of Finance. The regime is set by Order of the Minister of Finance No. 17 of 2 February 2022 and CNPF Decision No. 4/5 of 10 February 2022.

  • the application for admission;
  • the issue document or prospectus;
  • the decision of the statutory body or the issuing authority;
  • the statement designating the contact persons for BIMx.

Once the complete documentation has been submitted, the BIMx Executive Body issues the admission decision within no more than 10 business days. The trading start date for each series is set in coordination with the DCU.

Costs

Under the BIMx Schedule of Fees and Commissions in force, the admission and maintenance fee for instruments issued by the Ministry of Finance is zero. The trading commission for VMS is set separately, for trading participants.

For investors

  • Long-term VMS are generally considered instruments with low credit risk, but their price on the secondary market moves with interest rates.
  • On BIMx, like any instrument, they are bought and sold through a member broker, with T+2 settlement through the DCU.
  • BIMx publishes the admitted series and the trading start date for each series.

Key takeaways

  • Long-term VMS can be admitted to the BIMx Regulated Market; treasury bills (under one year) cannot.
  • VMS are admitted by right, at the initiative of the Ministry of Finance, on the basis of the issue document.
  • The admission decision is issued within no more than 10 business days of complete documentation.
  • The admission and maintenance fee for Ministry of Finance instruments is zero.
  • Investors buy VMS on BIMx through a member broker, with T+2 settlement.

Check your knowledge

Answer all the questions. If you answer all of them correctly, the lesson is marked as completed automatically.

Question 1 of 3Which of the following instruments is NOT covered by the procedure for admitting VMS to the BIMx Regulated Market?

Explanation: Treasury bills and other VMS with a maturity of up to one year are not covered by this procedure.

Question 2 of 3What is the admission and maintenance fee for instruments issued by the Ministry of Finance, under the BIMx Schedule of Fees and Commissions?

Explanation: The BIMx Schedule of Fees and Commissions in force sets a zero admission/maintenance fee for Ministry of Finance instruments.

Question 3 of 3How long does BIMx take to issue the VMS admission decision after receiving complete documentation?

Explanation: The BIMx Rules provide for the Executive Body to issue its decision within no more than 10 business days.

Finished the lesson?Mark it as completed to track your progress.

Educational material only. It does not constitute investment, legal or tax advice. Numerical examples are hypothetical.