London Stock Exchange-owned fixed income marketplace MTS has agreed to buy Bonds.com, a US-based platform for the electronic trading of corporate and emerging market bonds.
The deal - which will see MTS's US subsidiary buy 100% of Bonds outstanding shares in cash - will significantly expand the LSE's global fixed income offering.
Bonds offers real-time, executable orders on US corporate bonds and emerging market debt to over 600 buy- and sell-side institutions. Over 90% of all trades completed through the platform are conducted electronically.
A major player in the European bond market, MTS recently set up a US subsidiary, MTS Markets International, to offer buy-side participants the ability to directly access real-time pricing from "one of the deepest liquidity pools in Europe" and to trade electronically with European dealers via its BondVision platform.
Jack Jeffery, CEO, MTS Group, says: "The expanded product offering will enable us to meet the on-going industry and regulatory drive for greater transparency and efficiency in fixed income markets, through a competitive and cost-effective platform."
George O'Krepkie, president, Bonds.com, ads: "We believe that the trend towards greater electronic trading for fixed income products will continue as the customer base becomes increasingly global. MTS brings a wealth of experience in providing electronic platforms for fixed income trading, which will enable us to better serve our customers through increased product choice."