Technical Points
Trading Basis
Bonds trade on a clean price basis with prices quoted in decimal form.
Typical Transaction Size
The normal dealing size falls in the range of 10 million
euro to 20 million euro, but larger amounts can be readily dealt.
Bid/Offer Spread
For liquid issues with a maturity of up to 10 years the
price spread is normally three to five cent; in longer maturities it is
five to seven cent.
Commission, Transaction Costs
Stockbrokers who are not Primary Dealers deal on the basis
of negotiated commissions.
Tax
Currently there is no Irish withholding tax on Irish Government
Bonds.
Bond Register
The Central Bank and Financial Services Authority of Ireland
continues to maintain the register of holders of Irish Government bonds, the
majority of which are held in the name of Euroclear Bank. Bond dealings settle
(payment in full) on a t+3 basis (i.e. three business days after the trade date)
on TARGET operating days.
Settlement Date Conventions
Bond dealings settle (payment in full) on a t+3 basis
but deferred settlement
can be arranged on request.
Clearing System
On 4 December,2000, the
clearing
and settlement function for Irish Government bonds was
transferred to the Euroclear System from the Central Bank
of Ireland. The Central Bank of Ireland's own settlement
system , CBISSO, ceased operations at close of business on 1 December, 2000.
The transfer of activities took place without any service disruption.
The Central Bank of Ireland however continues to act as Registrar for Irish Government bonds.
Coupon Payment
Coupon income on fixed rate bonds is paid annually or
semi-annually, depending on the type of bond. The details
for each bond are shown on the list of
Irish
Government Euro Denominated Bonds Outstanding.
Coupon Accrual
Interest accrues from the previous coupon payment date
(inclusive) to the settlement date (exclusive).
Ex-dividend date rule
The benchmark bonds carry no ex-dividend period.
Year Basis
The benchmark bonds carry the annual actual / actual convention.
A number of the other annual coupon bonds carry the annual
30E / 360 convention while the semi-annual bonds have the
actual 365 day convention. The details for each bond are
shown on the list of
Irish Government Euro Denominated Bonds Outstanding.
Yield Calculation Method
For annual coupon bonds, yields are calculated in accordance
with the ISMA method. For semi-annual coupon bonds, yields are calculated based
on standard discounting principles using semi-annual compounding.
Special Rules Concerning Interest Calculations
For bonds with an ex-dividend period accrued, interest
is negative if the settlement date falls between the ex-dividend
date (exclusive) and coupon date (inclusive).
