General information about switch operations
Switch operations make it possible for market participants to exchange a significant amount of off-the-run issues to on-the-run issues at market price.
Switch operations are offered via the auction system MTS PAF which is currently used for the regular auctions of Danish government securities.
Switch operations via MTS PAF are conducted just as regular auctions of government securities with uniform pricing. Investors can submit bids through the primary dealers. Bids are contingent on simultaneous sale of the buy-back issues at the pre-announced price and hedge ratio announced at 10.20 CET on the day of the switch operation via Danmarks Nationalbank's webpage (link).
Deadline for submission of bids is 10.30 CET. Cut-off price and allotted quantity will be determined and announced as soon as possible hereaf-ter. Results of the switch operation are published on Danmarks National-bank's webpage, cf. link above.