MTS launches Global Collateral Management segment for D2C Repo trading
New service streamlines dealer and client trade flows via RFQ trading protocol
Full client audit trail for proof of best execution
Integrated with current trading software for STP connectivity
LCH Ltd signs as first buy-side trading client
MTS, one of Europe’s premier fixed income trading venues, has launched its new dealer-to-client (D2C) Global Collateral Management (GCM) segment for the repo market on MTS BondVision UK, and is pleased to announce the signing of LCH Ltd, a leading global clearing house as its first buy-side client.
MTS has a presence on the dealing desks of over 100 sell-side institutions and at over 400 buy-side institutions. This makes it ideally placed to help buy-side clients seeking access to balance sheet in an environment of reduced collateral availability and increased regulatory burden through MTS BondVision UK. The unique dealer axe pages will help highlight dealer inventory, linking to interdealer quotes to ensure axe integrity.
Having identified a clear demand for a flexible collateral management system, MTS will offer an RFCQ trading mechanism alongside a trade registration facility.
Dealers and clients will benefit from a variety of new features, including:
RFCQ efficiencies through automation: clients can send single line or “list” RFCQs to their dealers, with an import function to allow easy upload of bond portfolios
Straight through processing: dealers benefit from existing STP efficiencies, with trades co-mingled in their current blotter, whilst clients benefit from a full audit trail for proof of best execution
Flexible tri-party baskets: MTS will list participants’ bespoke tri-party baskets, with visibility restricted to approved dealer-client combinations
Full control of streaming of indicative quotes for dealers: dealers can stream axes, linked to their interdealer market quotes, to their configured clients on a proposal by proposal basis, directing them to relevant pools of liquidity and leading to improved access to funding and pricing
Highly granular credit line matrix: full control over trading counterparties with credit lines configurable by counterparty and instrument class with max tenor limits for each line and haircut capabilities
Oliver Clark, Head of Product at MTS, comments: “We are pleased to welcome LCH Ltd to our new Global Collateral Management system. LCH executes significant repo volume as part of its treasury function, and its decision to start to move this business onto our platform is a major vote of confidence in our technology and network. Its involvement, along with MTS's track record as a leading electronic venue for repo markets, will help to establish GCM as the premier platform for clients seeking the efficiency and security of electronic trading for their repo and collateral management needs.”
Bruce Kellaway, Global Head of RepoClear, EquityClear and Collateral at LCH Group: “MTS’s new Global Collateral Management system will allow us to deliver greater efficiencies in our treasury and collateral operations at LCH. Alongside our members, we are active users of the repo market and the increased flexibility offered through the new segment will deliver additional opportunities for execution for our investment activity. LCH continues to work on the development of a new model to allow high quality buy-side firms to use RepoClear, subject to regulatory approval, which will also improve liquidity for market participants and offer them greater access to risk management tools. The new dealer to client functionality offered by this GCM tool will be of value in this regard.”
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Notes to editors:
MTS Group facilitates a number of regulated electronic fixed income markets across Europe and the US that are managed centrally to ensure optimum levels of global harmonisation and consistency. Over 500 unique counterparties trade an average volume of €100 billion each day on these platforms.
The individual companies within the MTS Group are regulated by financial services regulators in a number of European jurisdictions, including Financial Conduct Authority (FCA), Italian Ministry of Finance, Banca d’Italia and Consob, Autorité des Marchés Financiers (AMF). In the United States MTS Markets International Inc. is a member of FINRA and operates MTS BondsPro which is an ATS registered with the SEC.
MTS Cash is a comprehensive and professional cash securities trading environment for the interdealer marketplace. MTS cash includes several domestic markets regulated in different jurisdictions enabling primary dealers to access unparalleled liquidity, transparency and coverage. MTS Repo provides an order-driven market for the electronic transaction of repo agreements and buy/sellbacks in Italy.
MTS BondVision is a trusted and efficient multi-dealer-to-client electronic bond trading platform, delivering exceptional access for institutional investors direct to market makers. MTS BondVision is accessible in Europe from the Italian and the UK legal entities and in the US through the US legal entity of MTS Group (MTS Markets International Inc.). On the BondVision platform, MTS Group provides institutional investors with real-time pricing and the ability to trade with the major dealers.
MTS Credit provides a variety of electronic execution methods for a wide range of multi-currency non-government bonds, including covered, SSA, corporate and financial bonds. MTS Credit is composed of financial instruments available to trade on both BondVision and MTS Prime.
MTS Swaps leverages existing MTS Group distribution technology to deliver immediate access to a diverse range of liquidity providers through your chosen prime banks.
MTS Data is sourced directly and exclusively from the MTS interdealer market and includes benchmark real-time data, reference data, reference prices and historical data, providing the benchmark data source on the fixed income market.
FTSE MTS Indices are operated by FTSE TMX Global Debt Capital Markets, in which MTS has a minority stake. They provide independent, transparent, real-time and tradable Eurozone fixed income indices, based on tradable prices from MTS. FTSE MTS indices are tracked by (and can be traded via) around 40 ETFs in addition to numerous structured products.
For more information, visit www.mtsmarkets.com.
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $12.5 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,000 people.
Further information on London Stock Exchange Group can be found at www.lseg.com