The appointment is approaching that’s what Bot worth 4 billion euros. This is not a new issue, but the reopening – for 1.5 billion – of ordinary treasury bonds 12 months with a residual life of six (maturity is January 12, 2024) and of the Bot a 6 monthsfor 2.5 billion euros, with a residual life of five months, which will expire on November 30, 2023.
That’s Bot
Only operators ‘specialists in government bonds’ can participate in the auction, while the saver can buy them in the bank.
Bots can be subscribed by savers for a minimum amount of One thousand Euro, while, as regards the maximum amounts of commissions applicable to customers by intermediaries, for 196-day and 153-day Bots, the maximum commission is set for both to the extent by 0.10%.
Read more:
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How Bot Auctions Work
The Bots – explains the Mef on his site – are titles of short term which reimburse at par, whose interest is represented by the difference between the redemption price and the subscription price. Since April 2009 the Bots are placed via aste competitive in which the offers of the operators are expressed in terms of yield rather than price. Intermediaries admitted to auctions can send up to five requests – each for an amount of no less than 1.5 million euro – indicating the nominal value to be subscribed and the related yield, with a difference of at least one thousandth of a percentage point between the five offers. The execution of the operations relating to the placement of the Bots is entrusted to Bank of Italy. At the end of the procedure for assigning the six-monthly and annual Bots, a additional placement reserved for specialists in Government Bonds, for an amount normally equal to 10% of the nominal capital offered in the ordinary auction.
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Investments, not just BTPs. From savings accounts to savings bonds: how to diversify your portfolio
How to invest in bots
Bots are issued with maturities equal to or less than one year and are admitted to listing on regulated retail and wholesale markets. Thanks to the characteristic of being zero-coupon titles, Bots present undoubted advantages in terms of management, since the financial outlay required for this type of investment is normally lower than the nominal value of reimbursement. Furthermore, there is no need to reinvest the flows received periodically as interest. Anyone who wants to buy a Bot at an auction must reserve quantity desired from an authorized intermediary within the working day preceding the auction. Being securities subject to the dematerialisation regime, the subscribed amounts of the Bots are represented by accounting entries in favor of the entitled parties. The transparency rules in the placement of Government Bonds (decree of 15 January 2015) have set a ceiling on the commissions that banks can request from their customers for the subscription of the Bots. These cannot exceed a percentage of the subscribed capital equal to:
The commissions are added to the price charged by intermediaries to subscribers, which is equal to weighted average price resulting from the auction. The maximum fees are reduced or cancelled in some particular cases, that is, when they occur rates close to zero or negative. In detail, if the weighted average price resulting from the auction operations is less than 100but the total sale price (including commission and substitute tax) is higher than 100, thecommission amount it is reduced so as to guarantee customers a charge in any case not exceeding 100 euros, for every 100 euros of subscribed capital. If, on the other hand, the weighted average price resulting from the auction operations is equal to or greater than 100no subscription fees are charged to clients.
2023-06-27 21:47:30
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