EuroMTS is to launch an electronic inter-dealer market for Israeli fixed-income securities based on its Telematico trading system.
Gianluca Garbi, chief executive officer of EuroMTS, met with Israel's finance minister Benjamin Netanyahu in Jerusalem yesterday to dicuss the basic features of the new market.
EuroMTS says the decision underscores the effort by Israeli authorities to modernise the country's debt management policy and promote the integration of its financial system with the global financial markets.
The platform will initially list Israeli sovereign debt securities and will be operated as a division of EuroMTS. Local operational and technical support will be provided by the Tel Aviv Stock Exchange.
Garbi says: "We believe that the MTS market model will enhance transparency and liquidity in the Israeli fixed income market, at the same time facilitating the introduction of global banks and investors.
"Eventually this should make it easier and cheaper for the Ministry of Finance to issue bonds and give investors a more liquid product."
MTS Israel is expected to begin trading in 2004.