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EuroMTS Limited is pleased to announce that the EONIA Swap Market on the MTS Money Market Facility was launched on Monday, June 4.
The MTS EONIA (Euro Overnight Index Average) Swap Market allows for the trading of all vanilla contracts from one week to 24 months in duration, as well as forward and broken-date contracts. State of the art technology and sophisticated credit controls provide a fast, stable and transparent marketplace, giving traders complete confidence in the immediate execution of swap contracts.
Structured as an order-driven market, the MTS EONIA Swap Market immediately benefits from broad dealer participation and support. Eleven dealers including: ABN AMRO, Banca IMI, Bank of America, Barclays, Dresdner Bank, HSBC, ING Bank, Merrill Lynch, NATIXIS, Royal Bank Of Scotland and UBS will be active in providing liquidity. This immediate commitment to the market guarantees significant market depth, which in turn will rapidly attract the participation of dealers across the European MTS network. Further, the market’s continued development is ensured by the governance of a swap market committee, the membership of which includes the 11 dealer participants.
"The market for EONIA swaps has until now been largely a voice broker-driven market and therefore, subject to significant operational costs," said Yvan Ducrot, Global Head of STIR at UBS AG Zurich. "We are thus pleased to support the launch of MTS's EONIA swap market as it provides for efficient trading."
The new market leverages on the existing distribution network of MTS’s Money Market Facility, which links more than 175 unique participants across Europe. A connection to SwapsWire, an automated confirmation system for over-the-counter derivatives products, including interest rate swaps, guarantees end-to-end straight-through-processing for the members of this service. "Following MTS's success in the cash inter-dealer market, the strong growth of its repo market and the expansion of BondVision, we are very pleased to continue to increase our range of products to include also the EONIA swap market," said EuroMTS Limited Chief Executive Officer Gianluca Garbi. "With this launch, MTS has become the one stop shop for electronically traded European interest rate products."
MTS Group
The group of MTS companies collectively comprises Europe’s premier electronic market in fixed income securities with daily volumes exceeding €110 billion. The MTS model utilizes a common trading platform, although regulatory responsibility remains under the jurisdiction of the relevant domestic authorities.
The group of companies includes the following wholesale markets: EuroMTS, EuroCredit MTS, NewEuroMTS, EuroGlobalMTS, MTS Quasi-Government Market, Eurobenchmark Treasury Bills Market, EuroMTS Linkers Market, MTS Cedulas Market, MTS Amsterdam, MTS Austrian Market, MTS Belgium, MTS Denmark, MTS Deutschland, MTS España, MTS Finland, MTS France, MTS Greek Market, MTS Ireland, MTS Israel, MTS Italy, MTS Poland, MTS Portugal and MTS Slovenia.
The group also includes BondVision, the Internet-based multi-dealer-to-client platform and MTSNext, the company that manages the EuroMTS Indices, the first range of independent, transparent, real-time and tradable eurozone fixed income indices. Tradable products on the MTS markets comprise Austrian, Belgian, Brazilian, Bulgarian, Chinese, Croatian, Cypriot, Czech, Danish, Dutch, Finnish, French, German, Greek, Hungarian, Irish, Israeli, Italian, Lithuanian, Mexican, Polish, Portuguese, Romanian, Slovakian, Slovenian, South African, Spanish, Turkish and Venezuelan government bonds; quasi government bonds such as EIB, KfW, Freddie Mac and CADES; Pfandbriefe, Obligations Foncières, Cédulas, Irish ACS; Dutch, Italian, UK and US covered bonds.
More information is available on www.mtsgroup.org
