The MTS EONIA (Euro Overnight Index Average) Swap Market allows for the trading of all vanilla contracts from one week to 24 months in duration, as well as forward and broken-date contracts.
State of the art technology and sophisticated credit controls provide a fast, stable and transparent marketplace, giving traders complete confidence in the immediate execution of swap contracts.
Structured as an order-driven market, the MTS EONIA Swap Market immediately benefits from broad dealer participation and support. Eleven dealers including: ABN AMRO, Banca IMI, Bank of America, Barclays, Dresdner Bank, HSBC, ING Bank, Merrill Lynch, NATIXIS, Royal Bank Of Scotland and UBS will be active in providing liquidity. This immediate commitment to the market guarantees significant market depth, which in turn will rapidly attract the participation of dealers across the European MTS network. Further, the market's continued development is ensured by the governance of a swap market committee, the membership of which includes the 11 dealer participants.
"The market for EONIA swaps has until now been largely a voice broker-driven market and therefore, subject to significant operational costs," said Yvan Ducrot, Global Head of STIR at UBS AG Zurich. "We are thus pleased to support the launch of MTS's EONIA swap market as it provides for efficient trading."
The new market leverages on the existing distribution network of MTS's Money Market Facility, which links more than 175 unique participants across Europe. A connection to SwapsWire, an automated confirmation system for over-the-counter derivatives products, including interest rate swaps, guarantees end-to-end straight-through-processing for the members of this service.
"Following MTS's success in the cash inter-dealer market, the strong growth of its repo market and the expansion of BondVision, we are very pleased to continue to increase our range of products to include also the EONIA swap market," said EuroMTS Limited Chief Executive Officer Gianluca Garbi. "With this launch, MTS has become the one stop shop for electronically traded European interest rate products."