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EuroMTS Launches Dedicated Inflation-Linked Market

London, May 27, 2004 – EuroMTS is pleased to announce the launch of a new market dedicated to the trading of inflation-linked benchmark securities, further promoting liquidity and creating a single point of access for this growing asset class. All euro-denominated inflation-linked government bonds of €3 billion or greater supported by a minimum of eight market makers will be eligible for trading on the EuroMTS Linkers market, which was created in response to the expansion of the European inflation-linked bond market.

Inflation-linked bonds of all current eurozone sovereign issuers, France, Greece and Italy, will be listed. In order to promote liquidity, quoting will take place on both the EuroMTS Linkers market and in parallel on the relevant domestic markets. The following dealers will support liquidity as market makers, who commit to quote all bonds listed on the EuroMTS Linkers market: ABN AMRO, Banca Caboto, Barclays, Citigroup, Deutsche Bank, Dresdner Bank, Goldman Sachs, HSBC-CCF, ING Bank, Lehman Brothers, Morgan Stanley, Société Générale, UBM and UBS. Additional participants are expected to join the market in both the market-making and price-taking capacity.

"As the pioneer in the issuance of inflation-indexed bonds in Europe, we have witnessed strong growth in this market and appreciate EuroMTS’ recognition of that growth through the launch of a dedicated market," said Bertrand de Mazières, chief executive officer, Agence France Trésor. "The additional liquidity afforded by the EuroMTS market will certainly help promote further growth of this developing asset class."

"As the majority of demand for our euro-denominated Greek inflation-linked bond comes from international investors, the inclusion of our bond on the new EuroMTS market was a natural step, and one we strongly support," said Christoforos Sardelis, director general, the Greek Public Debt Management Agency. "We expect to see even stronger liquidity going forward due to its inclusion on the EuroMTS Linkers market."

"We have seen strong interest for our inflation-linked paper and we expect its inclusion on this new EuroMTS market will further enhance liquidity for our bonds," said Maria Cannata, director general, Public Debt Management, Ministry of the Economy and Finance, Republic of Italy. "Our conventional benchmark securities already benefit from inclusion on EuroMTS and we expect similar performance from the inflation-linked securities."