MTS, Europe's premier facilitator for the electronic fixed income market, today announced details of its new electronic market for Euro-denominated non-government debt, which is being developed in response to proposals issued by the Cassiopeia Committee.
The new platform, which is expected to be launched before the end of 2011, will be called MTS Credit and will operate as a registered pan-European multilateral trading facility (MTF). It will offer trading in more than 2,400 investment grade, Euro-denominated corporate, financial and covered bonds. Participants will access the market via MTS's existing BondVision technology.
Jack Jeffery, Chief Executive of MTS, said: "From discussions with our clients, it is clear that increased issuance, market volatility and uncertain liquidity have changed the landscape for non-government bond trading in recent years. In response to specifications put forward by the Cassiopeia Committee, and working closely with the investment community, we are responding to a specific need for an electronic trading venue which offers efficient access to liquidity and price transparency."
Using MTS's existing BondVision distribution technology, MTS Credit will give investors immediate access to a diverse range of liquidity providers from launch, and will allow them to optimise their trading strategies and meet compliance and risk requirements.
The platform will offer a choice of execution options to support a range of trading strategies, including:
• An All-to-All order book (FSA regulated MTF): clients post and execute orders directly in an all-to-all order-driven market.
• Request For Quote/Stream: clients send outright, switch, butterfly and multi-leg (up to 20 orders at the same time) enquiries to up to 5 dealers
• Executable Orders: clients 'click-to-trade' on privileged, executable quotes provided by dealers
Jacques de Lézardière, Credit Manager at MTS, said: "Having a choice of execution methods on MTS Credit is very important in this constantly evolving market. With the launch of this platform, MTS Credit will bring efficiency and liquidity to the European non-government -government bond market, benefitting partg participants across the board."