A strong secondary market leads to develop primary market, even from a chronological point of view,
at issuing a government security the primary market precedes the secondary market. For designing a solid
secondary market, it is requiredmacroeconomic stability, transparency, the appropriate legal framework,
diversification of the financial instruments and investor base. The purpose of the research is to emphasize the
preconditions for a well-developed secondary market. Using a cross-sectional analysis, scientific documentation
and comparison the study analysed the indicators that reflect the degree of development of the secondary
market. Was found that the government plays an important role at the evolution of the government securities
market.A developed primary market of the government securities market is supported by a liquid and efficient
secondary market. The design of secondary market transactions and structures should seek to maximize such
attributes and incentives to trade, thereby encouraging the development of secondary markets, these include new
attributes to government securities and broadens the role and importance of government securities in the
financial system. Developing a government securities market is a complex process that depends on the
development of financial and market system of each country. Another important highlighted thing in this paper is
the importance of the diversification of the distribution channels of the government securities, the maturity of
government securities, frequency of auctions and the individual and institutional investors at participating in the
market of the government securities. This study definitively answers the question regarding the correlation
between primary and secondary market of government securities.