Record volumes were set across the MTS markets in October with the whole Group reaching a new monthly level of €447 billion (single-counted) in inter-dealer cash transactions alone, says Euro MTS. Repo volumes on the MTS system also reached €1.1 trillion in October, a fraction away from the €1.111 trillion record level reached in June earlier this year.
MTS domestic markets posted significant increases in turnover, with MTS Finland growing by as much as 380%, MTS Spain by 135% and MTS Ireland by 115% since their respective inception. MTS Germany also posted a rise of 175% and MTS France a rise of 40% in comparison to first quarter figures. Eurobenchmark bonds accounted for 23% of the overall volume, further demonstrating the unparalleled liquidity of the EuroMTS market, with European Primary Dealers contributing 22% to the total market activity. Turnover on the non-sovereign segment of EuroMTS also increased by 70% this year. Additionally, the dominance of the MTS system in the trading of German fixed-income products, namely Bunds, Kreditanstalt fr Wiederaufbau (KfW), Pfandbriefe and Lnder securities, was reinforced with another record of €51.6 billion on EuroMTS and MTS Germany during October 2002, up by 20%.
Volumes continue to benefit from the increasing number of MTS markets. The well-established MTS European network, connecting every major bank across Europe, means that the marginal cost of creating new MTS markets remains small. As volumes continue to develop, liquidity continues to concentrate on one or two dominant platforms – a trend that looks set to strengthen.