.jpg)
The activity of the Finanzagentur will initially focus on German Treasury Certificates ("Bubills"), in line with previous steps taken to support the continued growth of this market: In April 2002, issuance of Bubills was changed from €10bn quarterly to €5bn monthly, and in July 2003 the issuance size was increased by €1bn. In addition, as of July, an amount set aside for secondary market operations was introduced and for the first time the Finanzagentur started secondary market activities for Bubills.
The Bubill market on MTS Deutschland was launched in March 2002. As of today, transaction volume reached €48,9bn (single counted), and 18 market makers are committed to provide liquidity.
"The participation of the Finanzagentur on MTS Deutschland shows MTS' continuing commitment to build markets that serve the needs of their participants," said Gianluca Garbi, chief executive officer of EuroMTS and chairman of MTS Deutschland. "We welcome the participation of the Finanzagentur on MTS Deutschland as it will add another layer of depth and liquidity to the German market."
General developments of the German market on the MTS platform continue to be very positive. In 2003, Bayerische Landesbank, ING-BHF, Landesbank Rheinland-Pfalz and WGZ joined MTS. From January to November alone, volumes for German products already reached €450bn (single counted) in total, surpassing an already excellent 2002 result by €25bn.
Karsten Sommer, chief executive officer of MTS Deutschland added, "The German market on MTS saw a tripling of its size during the last two years. The activity of Finanzagentur in the MTS Deutschland market and the availability of a direct link to the settlement system of Clearstream Frankfurt now clear the path for further growth and the expansion of the MTS network in Germany".
