Euronext’s government bond trading affiliate, MTS S.p.A., plans to join with the China Foreign Exchange Trade System (CFETS) on the development of a transparent, liquid and efficient domestic fixed-income market in the People’s Republic of China.
The two signed a letter of intent but released no financial details about the deal. The aim is to combine MTS’s European Bond Market model with the domestic requirements necessary to create an electronic reference market for China.
CFETS currently operates China’s official interbank fixed-income market.
“We look forward to cooperating with the China Foreign Exchange Trade System and utilising their expertise in order to further our understanding of Chinese market practices,” said Gianluca Garbi, chairman of the management board of MTS S.p.A.
“China is a rapidly developing economy and, as such, we also look forward to exploring the possibility of a formal venture,” Garbi said.