MTS, the European government bond trading system, has set up a committee chaired by US Prof. Benn Steil to consider admitting hedge funds as members for the first time, in a controversial move that threatens banks’ control of the market.
According to a spokesman for MTS, the thinktank is consulting widely on whether to admit hedge funds as MTS members.
“We set up the committee on January 15 with banks as its members. It is due to make a presentation to the board of MTS but not before the beginning of April,” says MTS. “The board will discuss it and decide what to do, if anything.”