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List Trading Goes Live on MTS BondsPro All-to-All Order Book

Traders Magazine Online News, August 16, 2018

John D'Antona Jr.

New York – MTS Markets International, part of London Stock Exchange Group (LSEG), has enhanced its MTS BondsPro corporate bond trading platform with list trading functionality, enabling participants to benefit from the efficiencies of executing many trades simultaneously. The tool will streamline traders’ ability to execute trades against more than $17 billion of real-time resting corporate bond liquidity on MTS BondsPro.

After uploading a list of orders to MTS BondsPro, participants can connect with multiple liquidity sources in the platform’s anonymous all-to-all order book and execute on the best price for each trade. List trading delivers significant efficiency benefits to a trader’s workflow, particularly in the ability to enable execution of all trades with multiple liquidity sources at the same time. In so doing, traders are able to achieve efficient Best Execution in a  transparent, streamlined workflow.

MTS BondsPro connects a community of more than 600 broker dealers and buy-side clients within its anonymous all-to-all order book for corporate and emerging market bond trading. With over 80,000 prices daily, MTS BondsPro is one of the deepest fixed income liquidity pools available.

Trading activity on the platform doubled from July 2017 to July 2018, and its market share has grown 10% since June 2017 as participants continue to seek more liquidity in a challenging corporate bond market environment where credit spreads have widened significantly. The gap between corporate bond yields and underlying government yields continues to expand as the Federal Reserve raises interest rates and winds down its balance sheet.

David Parker, Head of US Sales, MTS:

“We are pleased to roll out this innovative execution capability on MTS BondsPro all-to-all order book. Access to liquidity is perhaps the most pressing challenge facing participants in today’s bond markets, and flexibility and efficiency are key considerations when selecting an electronic venue. The launch of list trading furthers our broader mission of maximizing liquidity and minimizing costs for our clients by connecting all types of counterparties on the buy and sell-side with each other in a seamless way on a single venue.”

Larry Tabb, founder of the financial markets research and advisory, Tabb Group: “The reallocation of fixed income portfolios generally do not generate single bond trades but spawn multiple transactions. This means that buy-side traders are typically tasked with sourcing liquidity for dozens if not hundreds of bonds, in various sizes and liquidity profiles. Creating a more efficient list trading process will not only help institutional fixed income traders focus on large and more difficult trades, but enable investors to source liquidity from more sources and at better prices. This will help improve fixed income investors’ performance and productivity.”

About MTS:

MTS Group facilitates a number of regulated electronic fixed income trading platforms 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.

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.

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