MTS Group, a pan-European electronic trading platform for government bonds, has signed an agreement with the Brazilian Ministry of Finance for the creation of an electronic market dedicated to the trading of local currency sovereign securities issued by the Federative Republic of Brazil.
MTS Brazil, which will allow for trading in real-denominated Brazilian international bonds, is expected to launch during 2008.
“The new market represents a significant step in the continued development of Brazil’s government securities market, and in the expansion of Brazil’s external investor base,” said Paulo Valle, deputy secretary of the Brazilian National Treasury, in a statement. “Therefore, we expect it to provide a benchmark for our international fixed income sector.”
Ciro Pietroluongo, CEO of MTS, added, “As global capital markets search for greater liquidity and efficiency in their bond issuance, MTS is committed to creating an environment where issuers, dealers and investors can satisfy this need. We look forward to working with the Brazilian Ministry of Finance and dealers to develop a model that enhances liquidity and efficiency within the market.”