UK - COREDEAL, the European screen-based exchange for international credit trading, has entered into a proposed partnership with EuroMTS, the leading pan-European trading platform for government benchmark securities.
The proposal, under which EuroMTS will acquire an equity stake in COREDEAL, aims to create a new platform based on the Telematico trading infrastructure. The platform will provide access to a large distribution network and pool of liquidity for international debt securities through major market makers recognised by the International Securities Market Association (ISMA).
Under the terms of the partnership, COREDEAL, which is 58% owned by ISMA will issue new ordinary shares to EuroMTS representing 15% of the share capital in the company.
The exchange will be branded “COREDEAL MTS” once the arrangements are finalised and approved.
ISMA chief executive and secretary general, John Langton, comments: “We have made it clear for some time now that there is considerable scope for consolidation amongst the providers of electronic trading services to the international debt markets. This new business model will combine the best attributes and strengths of both systems, bringing significant benefits to the international debt market in the EU.”