Mostly… fixed income and cross product eTrading

November 30, 2006

Icap hits out at eurozone bond restrictions

Filed under: etrading — holky @ 7:32 am

Article in FT says that Icap on Wednesday threw down the gauntlet to MTS, the dominant eurozone government trading platform, after it sponsored a report that was deeply critical of the operations of the Italy-based exchange.

The report, which was commissioned by Icap and written by Professor Avinash Persaud, an economist and former director of debt research at UBS, claims the presence of rules that currently force traders to use the MTS platform in eight European Union member states have held back the development of the bond market in Europe.

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3 Comments »

  1. Interesting. I think the rules MTS have in place were a good idea to get the ball rolling and ensure some discipline amongst Price Makers…indeed this also helped get the buy-in from the various Issuers throughout Europe – which is MTS’s real USP.

    However, there comes a time when such measures needed to be re-thought. Many banks grumbled about these “rules” well before the August 2004 Citi “event”. The main argument being that it can not be a true market if participants are forced to make prices.

    Anyway, ICAP sponsoring the report? Kind of diminishes the perceived objectivity don’t you think?

    Comment by waratah — November 30, 2006 @ 8:00 am

  2. the report is available from here

    Comment by holky — December 1, 2006 @ 7:18 am

  3. […] Previous post with ICAPs article about the Eurozone restrictions is here […]

    Pingback by French Govvies on MTS « Mostly… — June 17, 2008 @ 10:26 am


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