Euronext.liffe, the international derivatives business of Euronext, will launch the LIFFE market in London of a range of EuroMTS Government Bond Index Futures on 13th November 2006. These contracts are the latest in a series of pioneering products and services launched by Euronext.liffe which are designed to meet the needs of central order book and wholesale market customers by providing more choice and increased efficiencies.
EuroMTS Indices are the first independent total-return indices measuring the performance of a range of Eurozone government and non-government bonds and based on real-time tradable prices from the MTS system, the largest electronic marketplace for the trading of European bonds.
In equity markets, investors have long benefited from the transparency, simplicity and efficiency offered by equity indices, and futures on those indices. Euronext.liffe and EuroMTS are collaborating to offer similar advantages to the bond market, with the introduction of Euronext.liffe futures contracts on EuroMTS government bond indices.
The Exchange will initially launch futures contracts on indices from the EMTXg Government Broad (and country sub-indices) family. The launch date for these contracts is set for the 13 November and will consist of the following indices:
(a) EuroMTS Eurozone Government Broad Index (7 -10 years) (b) MTS France Government Index (7 – 10 years) (c) MTS Italy Government Index (7 – 10 years) (d) MTS Deutschland Government Index (7 – 10 years)
This launch will be followed in the first quarter of 2007 with the launch of a futures contract on an index from the EuroMTS Inflation Linked Bond Index family.
For the first time, this new range of government bond index futures will allow investors to gain broad exposure to Eurozone and individual country credits, France, Italy and Germany, on a single trading platform with liquidity, security and efficiency offered by Euronext.liffe.
“These new EuroMTS Government Bond Index Futures will form an integral part of Euronext.liffe’s interest rate portfolio, and will provide market participants with a wide range of new on-exchange trading strategies,” says Hugh Freedberg, CEO of Euronext.liffe.
“The introduction of futures contracts based on the EuroMTS Indices highlights their role as an independent, representative European benchmark,” says Gianluca Garbi, CEO of EuroMTS Limited. “The contracts will provide a straightforward tool for participants to achieve exposure to the entire eurozone bond market in a single trade.”