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Trading in Treasury bills at QE to begin on Thursday.

ASIF IQBAL DOHA TRADE in short-term Qatari Treasury bills (T-bills) will begin on the Qatar Exchange from December 29 with the aim to stimulate investment in them by commercial banks and other institutions.

"Trade in short-term T-bills will commence on the Qatar Exchange from this Thursday (December 29), with trade in government bonds and sukuk (Islamic bonds) starting at a later stage," Qatar Central Bank (QCB) Governor Sheikh Abdullah bin Saud al Thani said in a statement.

The move could increase trading activity and may encourage companies to issue more bonds. Qatari banks hold some QR 8 billion worth of Tbills T-bills are public debt instruments (securities) which are issued by Qatar Central Bank at a discount to the face value.

On the maturity date, the full par value is paid by the issuer to the investor. It provides investors with the opportunity to benefit from a guaranteed return over a short period.

The QCB governor expressed the confidence that the government debt securities would be in demand by banks, financial institutions and investors. He noted that listing short term T-bills on the QE starting on December 29 is a first step towards the secondary market trading for bonds on Qatar Exchange providing the diversification of investment instruments in the Qatari market.

The Deputy Chief Executive Officer of QE Rashid bin Ali al Mansoori stated that the QE management had got the approval of Qatar Financial Markets' Authority to launch the Debt Instruments Market and received from Qatar Central Bank a list of T-bills that would be listed for trading on December 29.

The listing of the short term T-bills on QE is expected to attract the attention of banks, financial institutions as well as investors, and the listing of government bonds and the presence of a bond market will encourage companies to issue and list bonds as an alternative for financing and ultimately contribute to increasing liquidity in the market.

Prices of T-bills are quoted on a per lot basis for blocks or lots of QR 10,000. This means that the minimum quantity that can be purchased or sold is always QR10,000 or multiples thereof. Similarly, price quotes and trade executions for T-bills on QE are on a discounted basis, meaning that the price is always less than or equal to 10,000.

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Publication:Qatar Tribune (Doha, Qatar)
Date:Dec 27, 2011
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