MTS, a leading fixed income electronic trading venue in Europe that is majority-owned by London Stock Exchange Group and BrokerTec, ICAP's global electronic fixed income trading platform announce today that they are further expanding the RepoFunds Rate (RFR) indices by adding a Spanish Repo index. RepoFunds Rate, launched in 2012, is a series of daily European indices covering the German, French, Italian and Pan-European Repo markets.
Each RepoFunds Rate index accurately reflects the effective cost of Repo funding for trades executed on the BrokerTec and MTS electronic trading platforms which typically have traded volumes of €230 billion per day (single counted) between the two groups. ICAP Information Services (IIS), the information division of ICAP, calculates and publishes the indices.
Oliver Clark, Head of Product at MTS, said: "We continue to explore innovative solutions for our clients and the wider market, and the RFR Spain is the next step in the evolution of the RepoFundsRate suite. The RFR for Spain recognises the significance of the Repo market as a key indicator of the secured cost of funding in Spain."
John Edwards, Director of Fixed Income (EMEA), BrokerTec, said: "Spain has a significant and meaningful Repo market and a major portion of this activity is transacted via the BrokerTec platform as a Multi-Lateral Trading Facility, with volumes frequently exceeding €20 billion/day in nominal terms and supported by both domestic and international counterparties. This launch follows the recently introduced Sterling Repo Index Rate (£RIR) in April 2016 for UK Gilt Repo."
RepoFunds Rate is based on four guiding principles: it is trade backed; has a transparent methodology; is replicable with Repo transactions; and has independent governance and trade sources.
RepoFunds Rate follows the IOSCO principles for financial benchmarks and was developed in 2012 with the Repo community to be the first index to fully reflect the effective cost of secured funding in key Eurozone countries. Index symbols are: RFR Euro; RFR Germany; RFR France; RFR Italy; and now RFR Spain. It is being distributed broadly via third parties including Reuters (REPOFUNDS) and Bloomberg (REPF) as well as being available via e-mail and FTP sources.
More information about RepoFunds Rate including historical data and calculation methodology is available at www.repofundsrate.com.
Notes to editors
About MTS:
MTS provides a professional trading environment for the interdealer marketplace, enabling primary dealers to access unparalleled liquidity, transparency and coverage. MTS delivers electronic fixed income trading, market data and indices and have over 5000 unique counterparties and average daily volumes of €100 billion.
Further information on MTS can be found at http://www.mtsmarkets.com/
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.
Further information on London Stock Exchange Group can be found at www.lseg.com.