MTS’s electronic repo market reached a volume high of up to EUR175 billion per day. The group attributes the boost to the recent launch of its Money Market Facility.
The Money Market Facility offers pre-trade anonymity for bilateral participants, in line with central counterparty (“CCP”) members, and a request-for-quote (“RFQ”) negotiating mechanism for Italian securities.
MTS’s repo group has 172 participants, which most recently include Bayerische Landesbank and Deutsche Postbank.
The Money Market Facility is a hybrid model which offers its participants the choice to trade repo either via a CCP (anonymous) or bilaterally using the same order book. For example, German bonds traded via LCH Clearing are now included alongside the established bilateral business in order to provide a totally anonymous trading environment for such securities. Trading volumes in German securities have expanded 53% versus 2004 volumes accompanied by marked growth in all EU repo markets.