as of August 2006

Minimum Standards for download

1.   Minimum issue size
The minimum issue size of a Jumbo Pfandbrief is EUR 1 billion. The volume of the initial issue must be at least EUR 750 million. The issuer is obligated to increase the outstanding total volume of the issue to at least EUR 1 billion within 180 calendar days after the initial offering.

2.   Format
Only Pfandbriefe of straight bond format (i.e. fixed coupon payable annually in arrears, bullet redemption) may be offered as Jumbo Pfandbriefe.

3.   Stock market listing
Jumbo Pfandbriefe must be listed on an organized market in a Member State of the European Union or in another Member State of the Treaty on the European Economic Area immediately after issue, although not later than 30 calendar days after the settlement date.

4.   Market making
Each Jumbo Pfandbrief must have at least five market makers who pledge to quote bid/ask (two-way) prices simultaneously for lots of up to EUR 15 million during usual trading hours (at least 9-17 hrs. CET). The function of market maker may also be performed by the issuing house itself. The market makers undertake to quote prices as long as there is sufficient outstanding volume to maintain a liquid market in the Jumbo Pfandbrief.

The market makers undertake not to exceed the following spread between the bid and ask prices when quoting two-way prices: Residual life to maturity up to and including 4 years: 5 cents, over 4 up to and including 6 years: 6 cents, over 6 up to and including 8 years: 8 cents, over 8 up to and including 15 years: 10 cents, over 15 up to and including 20 years: 15 cents, over 20 years up to and including 25 years: 25 cents. The maximum bid/ask spread to be quoted is adjusted according to the residual life to maturity of an issue. In the exceptional event of market making being suspended in the situations outlined under Recommendation No. 2, this must be immediately communicated to the market by the market maker in an appropriate manner.

5.   Add-ons
In the event that a Jumbo Pfandbrief is tapped, the amount of the increase should not be less than EUR 125 million per add-on. In the case of taps and new issues, a maximum of 5 banking days should separate pricing date and settlement date.

6.   Transfer and buyback
A subsequent transfer to the name of an investor is inadmissible (restriction on transferability). It is admissible to buy back securities for redemption purposes or trustee administration if the outstanding volume of the issue is not less than EUR 1 billion at any time. Furthermore, buy-backs are limited to half of the outstanding issue volume. The issuer must publicly announce any buyback, the planned volume thereof and the issue marked out for repurchase at least 3 banking days in advance, and make sure that thorough transparency in the market is assured. After a buyback transaction it is inadmissible to increase such an issue within one year.

7.   Loss of status
If one of the aforementioned provisions is not met, the issue will lose its Jumbo Pfandbrief status. Jumbo Pfandbriefe that were issued before April 28, 2004 and have a volume of less than EUR 1 billion retain the status of a Jumbo notwithstanding Number 1 if the other aforementioned provisions are met.

Recommendations:

1.   The market makers are to keep separate limits for the issuer's Pfandbriefe.
2. In the event of substantial rating changes or of a considerable deterioration of a Jumbo issuer's financial situation or of other circumstances that might jeopardize liquid trading of an issuer's Jumbo Pfandbriefe in a similar way, the Market Maker and Issuer Committee (MIC) consisting of representatives of market makers and issuers will immediately convene to discuss and, if applicable, recommend measures aimed at preventing the suspension of market making for the Jumbo Pfandbriefe of the issuer in question or at making the resumption of market making possible as soon as possible. The MIC will, with due consid-eration to the circumstances of the particular case, consider widening the bid/ask spread, lowering the single ticket sizes on which bid/ask prices are quoted or other measures that are appropriate and necessary in order for market making to be continued. Measures restricted in time should wherever possible be the subject of recommendations by the MIC.