MTS To Expand Its Money Market Operations - Ian Forrest Joins As Head Of MTS Money Markets

MTS is pleased to announce that in response to the strong growth of its repo market, it intends to expand its money markets operations to include other short term products, thereby bringing the transparency, liquidity and efficiencies offered by MTS to additional markets and clients. In conjunction with the expansion, Ian Forrest has joined MTS as Head of Money Markets. Forrest brings to MTS a wealth of experience in money market related transactions as well as expertise in implementing appropriate technology for the money markets.

Anchored by its strength in Italian repo, the largest repo market in Europe, MTS offers the widest range of products and number of active participants (193 Dealers) in this segment. Recent growth has been strong with repo volumes traded in the first six months of 2003 at nearly 6 trillion euro, up 18% from the same period last year. In addition, the MTS Repo Trading Facility (RTF) was recently enhanced to offer pre-trade blind trading, particularly beneficial for securities which are not cleared and settled by a central counterparty, but which profit from pre-trade anonymity. Greek securities, recently introduced on the RTF, are already being traded using this service. Fully anonymous trading is available, depending on the type of security, through the London Clearing House, Clearnet (soon LCH.Clearnet) and Cassa di Compensazione e Garanzia.

The expansion to other short-term products is a natural evolution to the MTS repo market, and will offer participants a one-stop shop to meet their short-term liquidity and interest rate risk management requirements.

"Going forward, MTS will offer a much broader spectrum of money market products, either through our own development or through strategic alliances with existing markets, boosting the opportunities for clients to realize truly transparent, efficient trading of these markets," said Forrest. "We will also work closely with clearing and settlement institutions to bring clients the most efficient, cost-effective transactions."

Prior to joining MTS, Forrest was the founder of Treasury Dealer Limited, an electronic dealer-to-client platform for money market products. He was previously co-head of European Treasury at BNP Paribas in London after having managed BNP's international repo desk. Forrest also headed the securities lending trading desk for J.P. Morgan in London and headed international fixed-income for James Capel & Co.

The MTS Repo Trading Facility currently offers the entire range of government bonds in the eurozone as well as Jumbo Pfandbrief and euro-denominated quasi-government bonds. Buy & Sell Back contracts or Classic repo for Specials and General Collateral are available, depending upon the country. Recent new market participants include: Alfred Berg, Alpha Bank, EFG EuroBANK, Finnish Treasury, HSBC Athens, Landesbank BadenWuertemberg, National Bank of Greece, Nordea, OKO, Skandinaviska Enskilda Banken, Svenska Handesdbanken.