MTS, part of London Stock Exchange Group, launched a new electronic multilateral exchange system for European unsecured money market trading in Euro, MTS Depo. The first transaction was executed between two Italian banks.
The MTS Depo was motivated by growing demand from money market traders to access more diverse forms of funding, while enabling users like as corporate treasurers to achieve a return on capital. MTS Depo is available for MTS Repo users and can be accessed by dealers in Eurozone countries.
The new platform enables users to negotiate short term borrowing and lending transparently and efficiently with highly flexible trade terms ranging from overnight to a year. MTS Depo offers trading protocols such as a central limit order book and bilateral trading functionalities.
MTS is currently expanding its client base and predicts a wide range of credit institutions connected by the end of the third quarter of 2020. The European Central Bank estimated a wholesale unsecured money markets turnover for 2020 in Europe of €127 billion ($137 billion) per day.
