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Jun 24, 2010 at 11:24 AM

Trading own Bonds



My client issues own bonds and buys and sells Government bonds. Their own bonds are created as 04X and government bonds as 04i, in terms of securities account own bonds (04X) are PAS hence can only be issued and redeemed and government bonds are AKT can only be bought and sold. The challenge is that the client also market make own bonds implying that they want to buy own bond from market, but system wont allow that because the bond is created as an PAS, is there a way of achieving this requirement, having long position on own bond. When the bond is redeemed, system can no longer see that position, whereas client wants to buy own bonds without really redeeming, but having own bonds as an asset.