Electronic trading platform EuroMTS is to open a new market for the trading of euro-denominated government securities of countries expected to enter the European Union in May 2004.
Countries whose bonds will be eligible for trading in the market - called New EuroMTS - include Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.
EuroMTS is forming a User Committee - comprising of both investment banks and issuing firms - which will define trading rules for the new market. The intention is to implement a set of listing criteria whereby the required issue size is gradually increased to the same level as that of EuroMTS at the time of convergence, or shortly afterwards.
EuroMTS says it expects the new countries to revise issuance policies and practices in order to expand investor bases in the lead-up to convergence -similar to the process that occurred with current EU members during the late 1990s.
Following the establishment of market rules, users will be connected to New EuroMTS with an aim to launch trading by the end of 2003.