MTS Finland was launched today. Oddly, MTS says the Finnish government bond trading platform is structured as a “segment” of MTS Belgium. In other words, MTS Belgium will provide both trading technology and operational services to MTS Finland.
MTS says the deal reflects the close relationship between the Belgian and Finnish Debt Agencies and the Primary Dealers in both countries, and allows the Finns to skip the cost of setting up a separate company. It will also allow reciprocal access for participants in both markets. MTS Belgium currently has 25 participants and MTS Finland 10, but only five participants are common to both platforms – which means that both platforms will gain new participants.
MTS Finland will nevertheless be governed by an independent executive committee headed by Finnish Debt Agency Finance Director Satu Huber. “We are pleased with the launch of MTS Finland and our partnership with MTS Belgium,” he says. “Not only does this provide us with an efficient national platform to trade the whole curve of our government’s fixed income securities, it aligns us with a proven and successful domestic MTS market on whose expertise we can count on.”
Baudouin Richard, Head of Financial Markets, Belgian Debt Agency added: “The partnership between MTS Finland and MTS Belgium is probably the most concrete illustration since the launch of the euro of a close cooperation between two government securities markets in the Euro zone. It is no coincidence that this cooperation takes place in the framework of the MTS electronic trading platform. MTS corporate governance and constructive support have been quite conducive to this development.”