The new connectivity allows market participants to electronically trade bonds from the TORA OEMS on the MTS BondsPro platform.
LSEG said that the tool launched with 12 Turquoise members entering new orders in 76 different symbols of 11 different country markets on its first day.
The loans will be provided to 16 EU member states under the SURE programme to help finance increased national expenditure relating to work schemes and other short-term measures.
The exchange's contingency plan will come only into play if equivalence decisions to allow cross-border services between the UK and the EU are not agreed upon.
The acquisition of Borsa Italiana by Euronext is dependent on the LSEG gaining approval from European authorities for its blockbuster takeover of Refinitiv.
Euronext moves forward with Borsa Italiana talks after bids from fellow exchange operators Deutsche Börse and SIX.
To address competition concerns raised by the European Commission as it looks to acquire Refinitiv, LSEG is seeking to offload Borsa Italiana.
LSEG had previously stated it is considering offloading Borsa Italiana to alleviate competition concerns about its Refinitiv acquisition.
MTS Cash adds UBI Banca as a market maker for Italian government securities after the bank deployed LSEG’s IT platform.
The European Commission had raised concerns that the combined LSEG and Refinitiv group could hold too much market share in bond trading once the deal closes.