Leading European dealers BNP Paribas and Dresdner Bank are to join online bond trading platform Market Axess when it commences operations in Europe early next month.
The company, which focuses on the interdealer market for fixed income credt products, has signalled the start of operations in the UK through a wholly-owned subsidiary Market Axess Europe Ltd.(MAEL). New recruits BNP Paribas and Dresdner Bank join existing European backers ABN Amro, Credit Suisse First Boston, Deutsche Bank Securities and UBS Warburg, as well as US-based dealers Banc of America Securities, Bear Stearns, JPMorganChase, and Lehman Brothers.
Market Axess says it has received SFA regulatory approval and plans to begin pan-European secondary trading in US dollar and Euro-denominated Eurobonds in September. By year-end, the platform will begin phasing in trading of other European credit products including Sterling, Pfandbrief, European high-yield and Euro-denominated emerging markets.
All trading will be done using a multi-dealer disclosed counter party model, an inquiry-based trading system that allows institutional investors to view multiple bids and offers from participating dealers. MAEL claims it is the only platform in Europe to offer this capability for credit products.
In the US, Market Axess currently serves 700 institutions and 3000 users and claims total trading volume of $5 billion for the year-to-date.
The European operation has been launched with a four-member management team headed by president Alan Collins, a 20-year capital markets veteran who was most recently head of global FX and commodities at JP Morgan. He is joined by Peter Doherty, a former manging director of Internet issuer platform DCM Online, as European head of sales.
Mia Thomas, previously from the London Stock Exchange, has been appointed as European legal and compliance officer and Ian Middleton, formerly of Robert Fleming, will serve as European chief administrative officer.