Ten Reasons to Choose MTS Cash

Over 300 counterparties and 2,000 traders globally trade an average daily volume exceeding EUR 90 billion across all MTS platforms, EUR 10 billion of which is traded on MTS Cash.

MTS has continuous dialogue with each country’s DMO and primary dealers and facilitates sharing of experience between them to help define and promote best practice in the fixed income market, creating an efficient market for all.

MTS Cash covers the following markets:

• Austria
  
• Belgium
  
• Czech Republic (Q3 2011)
• Finland
  
• France
  
• Germany
  
• Greece
  
• Ireland
  
• Italy
  
• Netherlands
  
• Portugal
  
• Slovenia
  
• Spain
  

Sovereign bonds

• New Europe
• Emerging Markets

Agencies/Supras

• EIB
• KFW
• CADES
• Freddie Mac
• ERAP
• CRH
• UNEDIC
• EFSF
• EU

Covered bonds

• French
• German
• Irish
• Spanish
• UK

Non-euro government bonds

• Denmark
• Israel

For over 20 years MTS has been working closely with DMOs, primary dealers, regulators and central banks across Europe and beyond to facilitate highly liquid primary and secondary bond markets.

MTS Cash offers the widest product coverage, with an expanding choice of product classes and tradable securities for markets across Europe, including fixed coupons, floating coupons, zero coupons and index linked coupons for a wide variety of durations and denominations. MTS also offers grey markets, marketplaces where you can buy or sell securities not yet in circulation, for example government bonds before auctions take place.Click here for the full product list.

The platform retains a high level of trader satisfaction with a very large percentage of trades being executed and high order execution rates through the curve. 

An orderly government bond market is essential to the pricing of all fixed income products. MTS delivers the transparency and access to benchmark these instruments and maintain the highest levels of liquidity.

MTS supports the B2C bond market through its BondVision platform, which is built on the same technology as MTS Cash. Market makers on MTS Cash also provide prices on BondVision, so liquidity is shared between the two platforms serving the primary and secondary bond markets.

Reports cover a wide variety of statistics and enable customers to compare trading performance with other market participants. Reports are accessed via a secure, password-protected web portal and include:

• Average and real time bid/offer spreads quoted
• Quoted sizes, volumes traded, market share and ranking
• Benchmarking against market averages
• Quoting performances

Through maintaining strong relationships with each country's DMO, MTS has established itself as an electronic trading venue of choice amongst the primary dealer community. MTS reports requested information to the DMO in a timely and efficient manner, enabling participants to maximise the transparency of their fixed income trading activity. 

Example of performance report:

Standard relative performance report for dealers:

Click here  to access the community page for dealers, containing a number of value-added reports. 

Click here  for help desk contact details.

MTS offers the technological and administrative infrastructure required by issuers to manage a modern, sophisticated and orderly primary dealership, through which effective debt management can be achieved. 

MTS offers an unrivalled combination of bespoke monitoring and data management tools to help issuers make informed debt management policy decisions. 

The MTS team also offers support to participants for any issue related to the post-trade process. It is the point of contact with central securities depositories, clearing houses and settlement agents for all MTS markets and products.

The team is resposible for market supervision, providing members with data and reports on their own activity and liaising with the DMOs when requested.

In addition the team manages listing of products and configuration of members.

Click here  to view all market rules.

MTS invests a significant proportion of revenues into technology development to support the diverse needs of fixed income market participants, along with proven system stability and local expert customer service.

• Flexibility – one single platform combines different market models (B2B, B2C); products (cash, repo and swaps); and functionalities (click and trade, request for quote, etc)
• Scalability – modularity of components allows for both horizontal and vertical scalability
• Capacity – level of throughput that MTS Cash can sustain is continuously improving and is first in class in the fixed income arena
• Performance – the average round trip time of transactions is currently less then 1ms, with 99.9% of transactions below 6ms (99.3% below 3ms)

Key indicators/measurement:

• Production peak msgs/s: 6,000msgs
• Production peak msgs/day: 70,000,000msgs
• Production average latency: <1ms
• Maximum msg per second per server: >12,000msg/s/server
• Maximum trade executions per second per server: >3,000msg/s/server

The MTS Cash platform can be accessed either via leased line connectivity or public internet. MTS provides market participants with a standard GUI allowing traders to connect to markets, and members can implement more sophisticated solutions (e.g. custom GUIs, auto-quoters applications) or integrate MTS trading functionality within their existing applications (e.g. deal-capture for risk management systems).

Effective and rapid communication is available with MTS through the SDP native protocol or FIX protocol. Official network service providers for leased line connectivity include BTRadianz, SIASS and BItNet (LSE/Borsa Italiana Group).

The range of rich trading functionalities on the MTS Cash interdealer platform enables dealers to make confident, accurate decisions and enhance its overall trading performance. Functionality is continuously updated to meet evolving compliance standards and to emulate the efficiency of voice trading with the added transparency offered by an electronic trading venue. 

Features include:

• Auto-matching of quotes – price and time priority algorithm automatically matches quotes of both counterparties
• Matching between orders (hit/lift) and quotes (bid/offer) - orders executed according to the time they are sent
• Manual matching – orders for amounts below the minimum (odd-lots) are subject to manual acceptance at the discretion of the market maker
• Ability to display block quantity or drip quantity – remaining amount is hidden
• MidPrice crossing – order book referenced to the MTS order book to determine a real-time mid price level at which orders are matched
• Parallel quoting – simultaneously enter a proposal for the same bond in benchmark segment and domestic markets
• Striker price – a limit order linked to a single side quote that will automatically hit/lift visible prices within its range.

MidPrice functionality for MTS Cash delivers the optimal execution experience for the interdealer market, including:

• Best in class venue for big size execution
• Ability to work orders without “moving the market”
• Attract natural liquidity from the OTC market

Key:

1. Best bid/offer prices - executable

2. Real-time information on executed trades

3. Market depth

Automatic registration of trades and STP integration reduces errors, cancellations and other issues that have an effect on customers’ efficiency and profitability, whilst removing the significant costs typically associated with establishing this high level of integration.

Details of members’ settlement accounts at CSDs/ICSDs are registered in the MTS database, and settlement instructions are automatically created and sent in real-time by MTS to the relevant CSDs/ICSDs on behalf of the seller and buyer.

Copies of these messages can then be sent to custodian banks for reconciliation purposes.

The two instructions created for each trade are always identical and are automatically matched, eliminating any potential post-trade discrepancies, mismatching errors and potential fails.

MTS settlement/clearing network

MTS delivers a comprehensive and trusted market data service that enables fixed income dealers to set best practice for price discovery, verification and validation.

MTS Data  delivers:

• Executable – not indicative – benchmark prices direct from the interdealer platform offering market-leading liquidity

• Continuous pricing throughout the trading day with market depth and all associated volumes

• Tight bid-offer spreads

• Extensive coverage

• Reference data from the source, providing complete coverage and accuracy

• Official open and close price fixings calculated by MTS each day using the traded/tradable prices from the MTS system

• High frequency tick data, daily cash and repo trading summaries – historical data direct from source

The availability of executable bond prices from the underlying MTS market enables MTS Indices to offer dealers a level of transparency and replicability that is unique in the bond markets.

Index data, together with the underlying bond prices used for the daily fixings and the index methodology, are freely available.

The indices are benchmarked by more than EUR 400 billion in assets under management and serve as the reference for numerous financial instruments such as exchange traded funds (ETFs), structured products, bond funds and index certificates.

The recent launch of the EuroMTS Inflation-Linked (IL) Investment Grade Index and the MTS Italy BTPi – ex Bank of Italy Index further enlarges MTS’s offering of benchmarks for portfolios composed of inflation-linked government bonds.

Indices offered:

• EuroMTS Index (ex-CNO Etrix)
  
• EuroMTS Government Broad Indices
  
• EuroMTS Investment Grade Indices
  
• Short EuroMTS Broad Indices
  
• EuroMTS Inflation-Linked Indices
  
• EuroMTS AAA Government Indices
  
• EuroMTS Covered Bond Indices
  
• EuroMTS Government Bill Index
  
• EuroMTS Deposit Indices
  
• MTS Italy Indices
  
• MTS Italy ex-Bank of Italy Indices