A new company has been set up to manage the screen-based secondary market for French government debt. The company, MTS France, is being jointly established by Clearnet and MTS. Clearnet is ParisBourse’s clearing house subsidiary, and Italian company MTS manages the Telematico electronic trading platform for European sovereign debt. MTS France will also use the Telematico platform.
French public debt issuers and financial institutions need an efficient wholesale electronic trading platform in order to react to the rapid developments in electronic bond trading, the two companies said, adding that the new company provides just such a platform.
MTS France will be the fourth link in a network that comprises MTS Italy, MTS Amsterdam and EuroMTS. More domestic markets are set to be launched in the future, the companies said.
MTS France’s capital will be available to Specialistes en Valeurs du Tresor, which will provide liquidity to the MTS France trading system through continuous two-way quotes. MTS and ParisBourse will be shareholders in MTS France.
The two companies have also agreed to cooperate in the development of a central counterparty for trades in Italian government securities.