Participants on the domestic markets are equally enjoying the tighter spreads offered by the EuroBenchmark Treasury Bills Market as these bills are listed in parallel on their respective MTS domestic markets. The benchmark status has permitted spreads to narrow by 1 full basis point, or approximately 25%, since launch. To date, thirteen market makers have committed to provide liquidity, while four market takers have joined the market.
"We are extremely pleased that the European Treasury bills sector has immediately benefited from EuroMTS benchmark status, which increases transparency and promotes turnover," said Gianluca Garbi, chief executive officer of EuroMTS Ltd. "As anticipated, the creation of a better coordinated euro T-bill market, which can be likened to a virtual single European issuer, has increased the liquidity of this market."
Treasury bills from France, Germany, Italy and Spain were initially listed on the EuroBenchmark Market. To qualify for listing bills are required to have an outstanding size of â¬1 billion or more and to be issued or tapped in the previous 60 days. Three buckets have been defined, including a 3-month bucket (11-13 weeks), a 6-month bucket (24-28 weeks) and a 12-month bucket (47-55 weeks).
Participants may act as European Treasury bill Specialists (quoting all EuroBenchmark Treasury bills), Single Market Treasury bill Specialists (quoting bills of at least one eligible issuer) and as Price Takers (can lift prices, but not insert quotes).