Written question asked by Lord Oakeshott of Seagrove Bay (Liberal Democrat), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 26 March 2012.

Goldman Sachs

Question: To ask Her Majesty's Government whether the Debt Management Office will review the authorisation of Goldman Sachs as a gilt-edged market maker, with privileged access to auctions of United Kingdom Government bonds.

Answer: As set out in the Debt Management Office's (DMO) Executive Agency framework document, operational decisions on debt management, including the selection of, and the management of, the bilateral relationship with the gilt-edged market makers (GEMMs), are delegated to the chief executive of the DMO. The essential criteria and obligations for all GEMMs are set out in the DMO's GEMM GUIDEBOOK, published on the DMO's website. The DMO believes that liquidity in the gilt market, which helps support demand for gilts and reduce the Government's financing costs, is best maintained by the presence of competing market-makers.

Secondary information