MTS and JSE to deliver South Africa’s first electronic government bond trading platform
- Nine primary dealers signed up as liquidity providers for the platform
- Trading platform has gone live today, 29 August 2018
- MTS has over 30 years experience in electronic fixed income markets
MTS, the electronic bond trading platform that is part of London Stock Exchange Group, and the Johannesburg Stock Exchange (JSE), South Africa’s leading financial markets operator, today announce reaching an agreement to open South Africa’s first electronic government bonds trading platform powered by MTS. The move seeks to enable global access to, and enhance transparency in, the South African government bond market, offering access to deep pools of secondary market liquidity. This relationship is a first for MTS in African sovereign bond markets.
Nine primary dealers have already announced that they have signed up as liquidity providers for the platform including Absa Bank, Citibank, HSBC, and JP Morgan*.
MTS has been operating electronic fixed income markets for 30 years, developing technological expertise in both government and corporate debt market operations. MTS has been selected by the JSE after a competitive procurement process to provide technology, operational services and monitoring of primary dealers obligations for the new market. The new market will be operated and managed by the JSE in South Africa in accordance with local regulations. The new platform has gone live today, 29 August 2018.
Angelo Proni, Head of New Markets at MTS, said:
“Over the past 30 years MTS has built unrivalled experience and expertise across 20 fixed income markets in Europe. A key element of MTS’s strategy for the future is taking that experience to an international level and helping more markets access the benefits of electronic trading. We are delighted to announce this new relationship, which is a first for MTS in African sovereign debt markets.”
Donna Nemer, Director of Capital Markets, Johannesburg Stock Exchange, said:
“The launch of the ETP, for government bonds will undoubtedly position South Africa’s capital market infrastructure as being amongst the most sophisticated in global Capital Markets. The benefits of a more sophisticated market infrastructure benefits issuers, investors and further positions South Africa as an attractive investment destination.
“This launch of the Bond ETP it also was an important element of South Africa’s commitment to Capital Markets reforms at the G-20 group of nations. The culmination of the intensive efforts of a multitude of stakeholders including our technology provider MTS, our nine Primary Dealers, the World Bank as project consultant, the South African Reserve Bank; and Central Securities Depository Participants (CSDPs) has really paid off and this is a proud moment for our country.”
Mr Mondli Gungubele, Deputy Minister of Finance:
“It has been a long seven years from the time when the electronic trading platform was conceptualised. Its launch today is a testament to what can be achieved when government and the private sector work together to achieve a common purpose.
“The use of electronic trading platforms has shown notable positive effects in the secondary markets including: improved liquidity through price discovery; reduced transaction costs and greater competition; increased transparency, and; lower trading costs.
- Ends -
* Full list of primary dealers currently committed to the new platform: Absa Bank, Citibank, Deutsche Bank, HSBC, Investec, J.P. Morgan, Nedbank, RMB and Standard Bank
For further information:
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Notes to editors:
MTS Group facilitates a number of regulated electronic fixed income trading platforms across Europe and the US that are managed centrally to ensure optimum levels of global harmonisation and consistency. Over 500 unique counterparties trade an average volume of €100 billion each day on these platforms.
MTS Cash is a comprehensive and professional cash securities trading environment for the interdealer marketplace. MTS cash includes several domestic markets regulated in different jurisdictions enabling primary dealers to access unparalleled liquidity, transparency and coverage.
MTS Italy Repo Segment is a regulated market operated by MTS S.p.A. under the supervision of the Italian Ministry of Treasury, Bank of Italy and Consob. The GCM Segment also allows trading in repo instruments and it is offered from both BondVision EU MTF and BondVision UK, respectively under the supervision of Consob and the FCA.
MTS BondVision is a trusted and efficient multi-dealer-to-client electronic bond trading platform, delivering exceptional access for institutional investors direct to dealers. BondVision provides institutional investors with real-time pricing and the ability to trade with the major dealers. It is available in Europe as a multi-lateral trading facility operated by MTS S.p.A under supervision of Consob. In the UK it is operated by EuroMTS under supervision of the Financial Conduct Authority. In the US it is operated by MTS Markets International as an Alternative Trading System registered with the Securities and Exchange Commission and operated by MTS Markets International Inc., which is a member firm of the Financial Industry Regulatory Authority, Inc. (FINRA).
MTS BondsPro is the a trading platform that supports Corporate Bond trading. MTS BondsPro is an Alternative Trading System registered with the Securities and Exchange Commission (SEC) and operated by MTS Markets International Inc., which is a member firm of the Financial Industry Regulatory Authority, Inc.
MTS Data is sourced directly and exclusively from the MTS markets and includes benchmark real-time data, reference data, reference prices and historical data, providing the benchmark data source on the fixed income market.
FTSE MTS Indices are operated by FTSE TMX Global Debt Capital Markets. They provide independent, transparent, real-time and tradable Eurozone fixed income indices, based on tradable prices from MTS. FTSE MTS indices are tracked by (and can be traded via) around 40 ETFs in addition to numerous structured products.
For more information, visit www.mtsmarkets.com.
About London Stock Exchange Group:
London Stock Exchange Group (LSEG) 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 ( a European fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies, including SMEs, 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 $16 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through The Yield Book, Mergent, 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 and Monte Titoli, a leading European custody and settlement business.
LSEG Technology develops and operates high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,500 people.
Further information on London Stock Exchange Group can be found at www.lseg.com. The Group’s ticker symbol is LSE.L