European bond trading network MTS is to acquire a 25% stake in Poland's treasury securities market, Centralna Tabela Ofert (CeTO), and will launch a domestic Polish government bond market based on its electronic dealing system.
The company, to be renamed MTS-CeTO, aims to promote liquidity and integration of Polish debt with other markets in Western Europe.
MTS CEO Gianluca Garbi and deputy CEO Philippe Rakotovao were elected members of the MTS-CeTO supervisory board. They join other representatives from the Ministry of Finance, the Warsaw Stock Exchange, the Polish Primary Dealers and the Polish Banks' Association.
Janusz Czarzasty, Chairman of CeTO, says: "The Polish Treasury securities market has experienced tremendous growth in turnover over the past year. We look forward to the continued growth and development of our market with the introduction of the MTS model and network."
Garbi adds: "Through the MTS network, global participants will have direct access to Polish debt trading, promoting liquidity and a more cohesive European financial system."
MTS-CeTO aims to launch the market in October 2004, in conjunction with the opening up of primary dealer candidacy to non-Polish banks. Rules governing the market will be established in consultation with the Polish primary dealers and with the approval of the Polish Ministry of Finance. The majority of bonds traded will be denominated in Polish Zlotys with the possibility for parallel quotation of Euro-denominated bonds traded on New EuroMTS.