The MTS Group has launched the MTS Cedulas Market, a facility dedicated to trading in Spanish covered bonds.
Cedulas of EUR1.5 billion in outstanding size, supported by a minimum of at least seven market makers, will be eligible for listing on the new platform, which has been launched in response to demand from issuers and dealers for a market entirely focused on Cedulas. Cedulas of EUR2 billion are already eligible for trading on EuroCredit MTS, the benchmark market for covered bonds. Those Cedulas already listed on EuroCredit MTS will be listed in parallel on the MTS Cedulas Market, ensuring a deep pool of liquidity.
Twenty-seven dealers participate in the market: ABN-AMRO, Barclays, Bayerische Hypo und Vereinsbank, BNP Paribas, Calyon, Citigroup Global Markets, Commerzbank, Credit Suisse First Boston, Deutsche Bank, Dresdner, Goldman Sachs International, HSBC-CCF, IXIS CIB, JP Morgan, Landesbank Baden-Wuerttemberg, Nomura International, Royal Bank of Scotland, SEB, Socit Gnrale, UBS and WestLB AG as Market Makers and Bayerische Landesbank, Danske Bank, Fortis Bank, Merrill Lynch, Norddeutsche Landesbank and Nordea Bank as Price Takers.
Eligible issuers include AyT Cedulas Cajas, Banco Bilbao Vizcaya Argentaria, Banco Santander Central Hispano, Banesto, Caja Madrid, Cedulas TDA, IM Cedulas Banco Popular and La Caixa.
Iigo Barrera, Vice-President at Santander Central Hispano, said: “We very much welcome the creation of a dedicated platform for Spanish covered bonds. This will encourage further growth in this fast expanding market and will enhance transparency for the benefit of local and international investors.”