Goldman barred from MTS trading platform

17 January 2007

Goldman Sachs has been temporarily banned from trading on the NewEuroMTS platform - a European government platform - over alleged rule breaches.

The Wall Street securities firm apparently failed to fulfil market-making obligations, as it is required to set buy and sell prices for bonds on a daily basis.

The MTS-run trading platform is able to automatically bar banks from trading if they fail to meet these obligations, and has told Goldman that it will not be able to trade for a period of two months.

However, the punishment can be seen as light in comparison to MTS's part record. In the past, Citigroup has been fined $25 million by European regulators for breaking MTS platform rules.

Part of the Euronext group, MTS's NewEuroMTS platform offers euro-denominated government bonds of EU governments not yet part of the euro.

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