The London Stock Exchange Group has announced this Thursday that MTS, its fixed income electronic trading platform, has launched MTS Depo – an unsecured money market trading platform.

MTS Depo is an electronic multilateral exchange system for European unsecured money market trading denominated in Euros. According to the statement provided by the Group, trading has already begun on the platform, with a transaction having been executed between two Italian banks overnight.

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Via the new platform, participants are able to negotiate short term borrowing and lending with trade terms ranging from overnight to one year. The platform also has trading protocols such as a central limit order book and bilateral trading functionalities.

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LSEG sees growing demand from traders

LSEG has launched the new platform in response to a growing demand from money market traders to have access to more diverse forms of funding, the company said in the statement. MTS Depo is available for users of MTS Repo and can be accessed by dealers in Eurozone countries.

Fabrizio Testa, CEO of MTS Markets, MTS Depo
Fabrizio Testa, CEO of MTS Markets
Source: LinkedIn

Commenting on the launch, Fabrizio Testa, CEO of MTS Markets, said in the statement: “MTS’s Repo markets have gone from strength to strength, with record volumes last year. However, our clients were keen to be able to deploy the same flexible technology solutions and gain efficiency in the unsecured money markets as well. 

“There was a clear demand from both our clients and the broader market for the same approach to be brought to the cash deposit market, and we have responded. MTS Depo now provides traders with access to a wide market of participants, flexible trading options and reliable post-trade services.”

By the end of the third quarter of 2020, MTS expects to have a range of credit institutions connected to the platform. It is currently onboarding new customers. MTS Depo is run on the same trading infrastructure which facilitates wholesale government bond trading on MTS, LSEG said.