This development marks the successful completion of the first phase of the technological overhaul of MTS’s trading system. The benefits of the state of the art TradeImpact system are expected to herald an ongoing expansion of MTS’s share of Europe’s repo market.
TradeImpact, designed to address the mounting capacity requirements of MTS’s inter-dealer markets, delivers an improved trading system in terms of performance and accessibility together with a host of new functionalities and enhanced cost efficiencies.
Gianluca Garbi, Chairman of the Management Board of MTS S.p.A., commented: “Through the new technology, we have launched a money market platform that meets the requirements of repo traders throughout Europe and accommodates all the contractual and settlement conventions of the modern repo market. The versatility of the system speaks for itself.”
New features of the MMF application, the flexibility of which sets new standards for electronic repo trading, include a Request for Quote (“RFQ”) facility, broken date maturities and integrated order books for classic and buy sell-back repos. During the forthcoming months the system will support optional Internet connectivity, while new releases will allow the introduction of other short-term money market instruments.
Simon Timms, Head of European and Asian Repo at UBS, said: “As one of the key players in the MTS repo market, we are impressed with the enhanced functionality of MTS's Money Market Facility. One of the principal benefits is the adaptability of the system. It is clear that MTS embarked on a detailed consultation process during the development phase and this has clearly paid dividends."
The technology upgrade will continue with the migration of the MTS cash markets and BondVision to TradeImpact by mid-2006. As with the MMF, system design, functionality and efficiency will be significantly enhanced through the new technology.
