Irish Government bonds are now listed on MTS Ireland and EuroMTS, two electronic trading platforms. On June 25th, two benchmark bonds - 4.25 per cent 2007 and 5 per cent 2013- listed on the EuroMTS Irish segment where more than 20 institutions participate, including 11 market makers. MTS Ireland, a new MTS domestic market set up as a division of EuroMTS, is also listing these two bonds as well as the 4.6 per cent 2016. Prices in these bonds will be made by the existing six primary dealers - AIB Capital Markets, ABN AMRO, Cr?dit Agricole Indosuez, Davy Stockbrokers, Deutsche Bank and NCB Stockbrokers together with Commerzbank AG.
The listing of the bonds on the MTS system is expected to increase liquidity in the Irish fixed income market and should further enhance the attractiveness of Irish Government bonds through greater price transparency, turnover and liquidity.
According to Peter Walsh, head of the primary dealing unit in AIB Capital Markets, the move is to be welcomed but said that it remains to be seen whether or not liquidity will be improved, and added that as of yet, trading has been slow. What it has immediately improved he says, is price visibility.
The launch of MTS Ireland completes the presence of the MTS network in all Euro-zone countries. The European MTS markets have a broad network of about 400 connections in 15 countries with an average turn over in excess of E70 billion per day (single-counted). |
