Proposal to the Bank of Greece on the Organization of Primary and Secondary Markets in Greek State Bills, Notes, and Bonds
The Bank of Greece is advised to open a secondary market in Greek State bills, notes, and bonds. Such a market should be run by the Bank of Greece as an open electronic call market. The Bank is also advised to run the primary market for Greek State bills, notes and bonds as an ascending open-outcry single-price auction. For that purpose, the Bank of Greece is advised to create a new Division to run the primary and secondary markets. Both markets should be run by the same automated system which should also do the clearing process and run the depository of titles of bonds at the Bank of Greece. There are a number of benefits of the primary and secondary market when organized in the manner described in this proposal. They include the strengthening of public confidence in the obligations of the Greek State, the reduction of short term interest rates, additional ability of government policy to influence the short term interest rates through open market operations, the ability of the Greece State to borrow in longer durations and lower interest rates, and the general strengthening and widening of capital and other financial markets in Greece.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
- Milgrom, Paul & Weber, Robert J., 1982.
"The value of information in a sealed-bid auction,"
Journal of Mathematical Economics,
Elsevier, vol. 10(1), pages 105-114, June.
- Garbade, Kenneth D & Silber, William L, 1979. "Structural Organization of Secondary Markets: Clearing Frequency, Dealer Activity and Liquidity Risk," Journal of Finance, American Finance Association, vol. 34(3), pages 577-93, June.
- Paul Milgrom & Robert J. Weber, 1981.
"A Theory of Auctions and Competitive Bidding,"
447R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Garbade, Kenneth D & Silber, William L, 1976. "Price Dispersion in the Government Securities Market," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 721-40, August.
When requesting a correction, please mention this item's handle: RePEc:wop:ennefn:_005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.