The Czech Treasury securities market includes T-bills and government bonds. Trading volumes in local-currency denominated bonds are relatively small in the secondary markets.
The primary market of corporate bonds was vivified particularly by activities of the Czech Securities Commission whose mission was to support development and protection of the capital market and also strengthen the investors’ and issuers’ trust in the capital market. In the context of integration of the financial market supervisors into the Czech National Bank, the Czech Securities Commission ceased to operate as of 31 March 2006. All its responsibilities were transferred to the Czech National Bank as from 1 April 2006.
Spread of corporate bonds as a source of funding is also supported by the Prague Stock Exchange. The stock exchange also attempts to enlarge the number of new primary bond issues in the Czech Republic, which will be an alternative to loans, which are now practically the only source of funding for Czech companies.
Government securities shall be sold onshore on the primary market principally by auction to primary dealers or in the form of direct registration on the owner account of the Issuer.
|