EuroMTS announced this week that it has formalized an agreement with the State of Israel to establish MTS Israel, to be the official electronic interdealer market for Israeli government bonds.
The launch of MTS Israel, scheduled for the latter half of 2005, will follow the introduction of Israel’s primary dealer system.
EuroMTS and the Israeli Ministry of Finance are in the process of defining terms for the new market, including the formation of a committee that will consult with the MOF with regard to listing criteria for securities and parameters in relation to quoting obligations.
The committee will comprise of two representatives from the Ministry of Finance, a representative from each of the Israeli primary dealers and one representative from EuroMTS. The Ministry may also appoint a representative from the Tel Aviv Stock Exchange and the Israeli Central Bank.
Dr. Yaron Zelekha, Accountant General, Ministry of Finance, State of Israel, said in a statement, “The imminent introduction of the primary dealer system and the establishment of MTS Israel represent years of dedicated collaboration. The formation of this market, which will improve the liquidity of our bonds and lead to greater efficiencies, reflects our commitment towards the modernisation and globalisation of our capital market.”