CoredealMTS To Consolidate Its Market With EuroMTS

The Boards of EuroMTS and CoredealMTS have resolved to consolidate CoredealMTS' business in a move to reduce costs and to concentrate liquidity in the corporate bond market. Corporate bonds listed on CoredealMTS will be migrated to a dedicated segment of EuroMTS, expanding upon its already successful non-government bonds market, which has seen a 70% increase in turnover this year.

The consolidation of the CoredealMTS market with EuroMTS creates a single legal framework, which will facilitate the entry of current EuroMTS participants. Additionally, a Spread Trading Facility has been fully tested and is ready for production to provide further opportunities for establishing liquidity, leveraging on EuroMTS' leadership in government bond markets. The pricing of corporate securities as yield spreads against government benchmark bonds will enhance the development of this sector of debt trading, in response to the needs of credit traders.

Gianluca Garbi, CEO of EuroMTS, said: "By combining the CoredealMTS platform with EuroMTS, we will be able to further rationalise the structure of our markets, addressing the needs of participants, and reinforcing our commitment to the further development of credit instruments."

Over 170 corporate bonds with a minimum size in issue of €1 billion are listed for trading on the EuroMTS corporate bond segment, which has attracted 23 participants since its launch in March this year. A record daily turnover of €120 million (single-counted) was achieved earlier in the year.