Operational Notice - South African Reserve Bank

SA RESERVE BANKsquare-off auctions. The type of square-off auction as well as the closingtime will be announced on the Bank’s wire services (see Appendix II). Neitherthe amount on tender nor the cash position of the market will be disclosed.4.2 Submission of bids4.2.1 Bids for final clearing or supplementary auctions should be submittedwithin 15 minutes after the announcement of the auction.4.2.2 Bids for funds are irrevocable once the auction has closed. A participantcommits itself to entering into a repurchase transaction up to the amountspecified in the bid(s) submitted at the close of the auction.4.2.3 Participants in repurchase auctions should call the Reserve Bank’s dealingroom (telephone 012 313-4952/7) with the details of their bids, before theclosing time of the auction as specified in the invitation.4.2.4 When submitting a bid, participants must state only the total amount offunds for which they wish to bid. The type of securities to be sold to theReserve Bank should not be specified when submitting bids but only afterthe announcement of results as specified in Section 4.4 below.4.2.5 The minimum amount for bids is R10 million and thereafter bids should besubmitted in multiples of R1 million.4.2.6 The size of the allotment amount in all auctions is always determined at thediscretion of the Reserve Bank.4.2.7 In the event of a dispute, reference will be made to recordings of telephoneconversations. All telephone conversations received and made by theReserve Bank’s dealers are recorded.4.3 Acceptance of bids and announcement of results4.3.1 The total amount allocated is determined at the discretion of the Reserve Bank.In the event of the total amount of bids received exceeding the amount whichthe Bank intended to provide to the market, participants receive a partialallocation at the repurchase rate specified by the Reserve Bank in the invitation.4.3.2 The Reserve Bank normally announces the results of the main repurchaseand the final square-off auctions within fifteen minutes of the closure of theauctions (see Appendix II) stating, among other things:- the total amount of bids received;- the total amount allotted; and- the type of final square-off auction (i.e. repurchase or reverserepurchase)4.3.3 Once the auction results are released participants have to call the ReserveBank’s dealers to obtain confirmation whether the full amount of their bidshad been accepted or, if not, their partial allotment. The Reserve Bankreserves the right to reject individual bids and to accept individual bids in part.4.4 Valuation of securities and calculation of haircut4.4.1 Participants receive cash to the exact value of an accepted bid in aOPERATIONAL NOTICE7