MTS launches new unsecured money market trading platform, MTS Depo
- Electronic unsecured money market trading now available for dealers across Europe on the same platform as MTS Repo
- First trade executed and settled between two Italian banks
- Launch reflects growing demand for electronic trading in unsecured money markets across Europe
London - MTS, part of London Stock Exchange Group, has launched MTS Depo, a new electronic multilateral exchange system for European unsecured money market trading denominated in Euros. Trading has already begun with an overnight transaction executed between two Italian banks.
The new trading platform was launched in response to growing demand from money market traders for access to more diverse forms of funding, while enabling participants such as corporate treasurers to achieve a return on capital. MTS Depo is available to all users of MTS Repo and can be accessed by dealers in Eurozone countries.
MTS Depo allows participants to negotiate short term borrowing and lending transparently and efficiently with highly flexible trade terms ranging from overnight to one year. It provides multiple trading protocols including a central limit order book and bilateral trading functionalities.
MTS is currently onboarding new customers and expects to have a wide range of credit institutions connected by the end of Q3, 2020. In 2020, The European Central Bank estimated turnover in wholesale unsecured money markets in Europe alone is €127bn ($137bn) per day.*
Fabrizio Testa, CEO of MTS Markets, said:
“MTS’s Repo markets have gone from strength to strength, with record volumes last year. However, our clients were keen to be able to deploy the same flexible technology solutions and gain efficiency in the unsecured money markets as well. There was a clear demand from both our clients and the broader market for the same approach to be brought to the cash deposit market, and we have responded. MTS Depo now provides traders with access to a wide market of participants, flexible trading options and reliable post-trade services.”
MTS Depo customers trading a range of money market contracts benefit from straight-through processing using the TARGET2 messaging platform, facilitating real-time gross settlement.
Additionally, moving unsecured money market trading onto MTS’s electronic platform enables market participants to reduce manual processing, generating efficiencies and lowering the barrier to market entry in what remains a voice driven, over the counter (OTC) market.
The new MTS Depo market is run on the same trading infrastructure which enables wholesale government bond trading on MTS.
- Ends -
*ECB, Euro money market statistics: first maintenance period 2020 (29 January 2020 -17 March 2020), published, 7 April 2020
For further information:
Oliver Mann/Lucie Holloway - +44 (0)20 7797 1222
Notes to editors:
1 – Source European Central Bank
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 InternationalInc., 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 a global financial markets infrastructure business. Its diversified global business focuses on Information Services, Risk and Balance Sheet Management and Capital Formation. The Group supports global financial stability and sustainable economic growth by enabling businesses and economies to fund innovation, manage risk and create jobs. The Group can trace its history back to 1698.
In Capital Markets, 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.
In Information Services, through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with over $15 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.
LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. 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