Portugal

  • Portugal

1 Country overview

MTS facilitates a regulated market for the electronic trading of Portuguese government securities.

2 Instruments

Portuguese government securities issued or in the process of being issued by the government of Portugal are traded on MTS Portugal. The securities traded on MTS Portugal will initially include only treasury bonds (i.e. OT and OTRV).

OT - treasury fixed rate bonds. The annual coupon is paid annually or semi-annually (for series issued before 1994) and it is calculated on a non-adjusted basis. The day count convention is actual/actual

OTVR - treasury floating rate bonds. The annual coupon is paid semi-annually and calculated on a non-adjusted basis. The day count convention is 30/360

BT - treasury bill. A zero-coupon security, unadjusted. The day count convention is ACT/360

For a full list of available instruments, click here.

2.1 Minimum lots

Proposals must be formulated for a minimum quantity equal to EUR 10 million for benchmark securities and EUR 5 million for liquid securities.

Proposals must be formulated for a minimum quantity equal to EUR 10 million for bonds with a maturity up to 11.5 years and EUR 5 million for bonds with a maturity over 11.5 years.

Applications may be submitted for the following quantities:

− EUR 2.5 million and multiples with auto-matching

− Odd lots of EUR 5m and multiples up to EUR 2.5m, with manual matching subject to market makers’ acceptance

3 Participants

For a list of participants, click here.

3.1 Participant requirements

Liquidity on the system is ensured by the 18 market makers, of which 15 are primary dealers and 11 are market takers. On BT segment there are 17 market makers and 7 dealers.

Market makers must have net assets of at least EUR 250 million. Dealers must have net assets of at least EUR 100 million.

3.2 Market making obligations

Market makers must commit to the following market making obligations:

Must provide two way proposals for Portuguese benchmark issues.

A subset of non-benchmark issues is assigned to each market maker for obligatory quotation. The allocation is by type of securities, maturity and liquidity.

Two way proposals must be displayed for all securities assigned for at least five hours per day.

Benchmark and liquid securities are divided into 4 different maturity buckets: A (1- 3.5y), B (3.5-6.5y), C (6.5- 11.5y) and D(>11,5Y) for the OT/OTRV segment.

Spreads and proposal size obligations can vary from bucket to bucket and between benchmark and liquid issues, except for the BT segment.

Market takers do not have market making obligations.

4 Market Hours

Cash Pre-Market: 7:30am – 8:00am

Trading Hours: 8:00am – 5:30pm

Market Closed: 5:30pm

5 Settlement

Trades on Portuguese - Government bonds settle at Euroclear Bank and Clearstream Banking Luxemburg. MTS sends Swift settlement instructions on behalf of both participants to the relevant ICSD. MTS participants must hold a securities account at one of the two ICSDs either directly or indirectly through a custodian.

LCH.Clearnet Ltd is available as a Central Counterparty: for CCP transactions MTS sends Swift trade messages on behalf of both participants to LCH.Clearnet Ltd.

The settlement cycle is T+2. The settlement calendar follows the TARGET calendar skipping value date only on TARGET non-business days.

6 MTS Portugal - Fee schedule

MTS Portugal fees include: membership fees plus transaction fees

7 Market Data

7.1 Public data

Click to view:

Daily bulletins

Daily fixing

7.2 Password protected

Click to view:

Participant statistics