MTS plans move on US fixed income markets
MTS, the European electronic fixed income marketplace majority owned by the London Stock Exchange, plans to open a platform for US institutional investors, allowing them direct access for the first time to trade European and US government, agency, mortgage, and corporate bonds with major dealers.
MTS Markets International, a wholly-owned US subsidiary, has received approval for membership as a FINRA-regulated broker-dealer, and Mark Monahan has been appointed as chief executive. Monahan was previously chief executive of Ballista Securities (acquired by the Intercontinental Exchange in 2011) and chief executive of ICAP Electronic Brokerage in Asia Pacific.
“Increasing regulation, alongside continued uncertainty in the sovereign and credit markets has accelerated the demand for more efficient, informed and connected execution venues,” said Monahan. “MTS is ideally positioned to answer this need by providing institutional investors with a transparent window into the European marketplace.”
MTS will launch in the US later this year, initially offering European and US government, agency, corporate and covered bond markets. These services will access pricing and liquidity from the dealer-to-client platform MTS BondVision.
Jack Jeffery, chief executive of MTS Markets, said: “Building out our fixed income presence in the US is a natural extension for MTS and London Stock Exchange Group. By expanding the reach of our pricing and trade execution, we are not only responding to the on-going regulatory push for greater transparency and efficiency, but providing an attractive, competitive and cost-effective alternative to an important community of institutional investors.”
