London – European bond-trading platform company MTS SpA will today discuss demands from hedge funds to be given direct access to its interdealer government-bond platforms for the first time, the Wall Street Journal reported.
If MTS, which is majority-owned by NYSE Euronext and Borsa Italiana SpA, gives the green light, it will allow the funds to start trading in the 4 trln eur government bond markets using their computer-generated execution systems, which would expand their money-making opportunities and potentially increase the market’s volumes.
But any plan to open the interdealer market to outside investors will need to resolve a likely clash with the market-maker systems that most governments use to support liquidity in their debt, the newspaper noted.
