Through the technical and operational structure of MTS Associated Markets, MTS Denmark will trade Danish bonds with original maturities of 13 months or more. The Government Debt Management of Danmarks Nationalbank will also conduct issuance and buy-back procedures on the segment.
Ove Sten Jensen, Head of Government Debt Management, Danmarks Nationalbank, said: "The introduction of MTS is a significant step forward in developing the Danish market and bringing its facilities in line with standards in other countries. Moreover, we believe that introducing Danish government bonds on the MTS galaxy, which is the predominant platform for trading in European bonds, will enhance liquidity and transparency in the Danish market and facilitate a wider dispersion of Danish government bonds among investors."
Liquidity will be ensured on MTS Denmark by the 13 Danish Primary Dealers, who will all act in a market-making capacity. They include ABN AMRO, Amtssparekassen Fyn, Barclays, Danske Bank, Deutsche Bank, HSH Nordbank, JP Morgan, Morgan Stanley, Nordea, Nykredit Bank, SE Banken, Svenska Handelsbanken, and Sydbank. Initially, 10 issues will be eligible for trading on MTS Denmark. Danish government bonds will also be available for trading on BondVision, the dealer-to-client arm of the MTS Group, providing an additional source of liquidity.
Steen Blaafalk, Head of Fixed Income at Danske Bank, said: "We are delighted that through MTS Denmark, we will finally participate in the MTS system. As a leading player in Scandinavia, we are committed to provide liquidity to this market, a market which we are certain will significantly gain from the successful and well-established MTS model."
Lars Riis-Kofoed, Head of Global Fixed Income Trading at Nordea Bank, said: "Following the success of MTS Finland, we are pleased that the MTS model and network will now be brought to the Danish government bond market, which will undoubtedly benefit from the increased transparency and liquidity that MTS delivers. Further, MTS Denmark will provide the Danish government bond market and Danish financial institutions with greater integration with European financial markets."
MTS Denmark is governed by a Committee, composed of Danish Primary Dealers and a representative of MTS S.p.A., and is chaired by the Head of Government Debt Management of the Danmarks Nationalbank. Clearing and settlement for Danish bonds will be done through VP Securities Services.