MTS Launches EU Accession State Bond Index

MTSNext has launched a EuroMTS New EU Index (EMTXn), which it says is the first real time index for euro denominated government benchmark bonds issued by the new member states of the European Union. The EMTXn is based on real

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MTSNext has launched a EuroMTS New EU Index (EMTXn), which it says is the first real-time index for euro-denominated government benchmark bonds issued by the new member states of the European Union. The EMTXn is based on real-time prices quoted on the NewEuroMTS system.

The EMTXn Index includes all bonds listed on NewEuroMTS (euro-denominated issues of at least EUR 1 billion in outstanding size and a minimum of 15 months to maturity issued by the new European Union member states). Currently, 10 eligible bonds issued by Poland (3), Hungary (4), Czech Republic (1), Slovak Republic (1) and Lithuania (1) are included.

Andrzej Ciopinski, Deputy Director of the Foreign Policy Department, Ministry of Finance, Poland, said: “The launch of the EuroMTS New EU Index meets investors’ requirements for an independent benchmark and will also serve to further harmonise debt markets within the European Union. We welcome this initiative which will provide a real-time barometer for the market.”

Raymond Harte, Managing Director of Corporate Finance and Origination at Dresdner Kleinwort Wasserstein, said: “The increasing importance of the new EU member states coupled with investors’ requirements for transparency point to the need for a standard that will accurately reflect the growing market. As such, we are pleased to see the introduction of the EuroMTS New EU Index, which will provide the marketplace with such a benchmark.”

Since the launch of the first EuroMTS eurozone government bond index, the EuroMTS Indices have paved the way for the creation of exchange-traded funds ((ETFs), structured products, index certificates and over-the-counter (OTC) options. As with all EuroMTS Indices, the EMTXn is designed to ensure optimal representation and transparency. Additional information in respect of the EuroMTS Indices, including underlying bond prices and historical index data, is available on www.euromtsindex.com and through market data vendors (Bloomberg “EMTS” GO and Reuters “EUROMTSINDEX”).

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