European electronic trading platform EuroMTS is launching an interdealer system for the trading of US dollar denominated agency, supranational and European sovereign bonds.
EuroMTS says the new segment, which will be launched in June, paves the way for the creation of a new market dedicated to global issuers.
The move follows the growing market activity in dollar denominated instruments during European market hours and the needs for increased transparency and liquidity by dealers and investors.
Eligible bonds must have a minimum outstanding size of at least $2 billion with a minimum rating of AA-/Aa3 to qualify for listing. The new segment will initially include securities from Depfa, European Investment Bank, Fannie Mae, Federal Home Loan Bank, Freddie Mac, Inter-American Development Bank, KfW, the Republic of Italy and the World Bank.
Christian Zocher, director, fixed income credit trading, Deutsche Bank, says: "The expected increase of liquidity will eventually lead to lower transaction costs and more competitive pricing, which will be of benefit to customers, issuers and the trading community."