The MTS Group today announced its European Trading and Settlement Calendar for 2003, a move to harmonise the trading and settlement conventions across Europe. Following the introduction of the Euro, MTS markets have attracted significant trading activity of government debt from all the Eurozone countries onto a single electronic trading platform and as such has given the MTS Group and its shareholders, the largest international banks and a number of national debt agencies, the position to actively contribute to this process of harmonisation.
All MTS markets follow TARGET for trading purposes, whereby market transactions can be executed also during the domestic Public Holidays that are not TARGET holidays. On the contrary, market conventions and operational difficulties arising from differing degrees of staff support have traditionally hindered the full application of TARGET to the settlement calendar, regardless of the fact that various depositories are fully operational during their domestic national holidays.
Three years after the introduction of TARGET and the operation of several MTS Markets, activity during domestic Public Holidays has grown significantly, suggesting the move towards harmonisation. However, a number of financial institutions have reported that it is still to early to adopt TARGET for settlement for all countries and have strongly suggested respecting domestic Public Holidays in some markets.
The MTS European Trading and Settlement Calendar 2003 is a phased approach introducing the TARGET settlement calendar in those countries where the conditions for doing so already apply and consensus exists in the financial community.
The harmonisation of the European Trading and Settlement Calendar is dependent on several factors including: improved transparency and communication to the dealing and institutional investor community, internationalisation of trading activity (i.e. increasing importance of cross-border vs. domestic activity) and the policy of local authorities and regulators.
MTS will continue to encourage communication among all interested parties to complete this important process as soon as possible and achieve full harmonisation in this area across Europe.