Hedge Funds Eyeing MTS

Filed in archive Hedgetalk on March 9, 2007

Hedge funds such as Citadel and Vega have been reported as trying to gain direct access to the pan-European bond exchange network MTS.

MTS is an abbreviation for Mercato dei Titoli di Stato, which translates to "Market for Government Bonds".

The technology of the Italian based MTS platform is the Telematico system, a sophisticated electronic platform specifically designed for the trading of fixed income instruments. It replaces the expensive and often time-consuming process of trading over-the-counter.

The European Primary Dealers Association (EPDA) reported that it has not yet decided whether to allow third parties to access the platform, but the group has reportedly set up a committee to consider admitting hedge funds as members.

There has been no update as yet, but it would be interesting to see how this pans out.