London loses its status as the first port of call as Bond trade moves to Milan before Brexit
Italy has the biggest sovereign debt market in the Eurozone. LSE group is to shift bond trading to Milan ahead of Brexit and lose its status as the first port of call for European governments selling bonds.
From 1st of March 2019, only the UK government and UK-based banks will use a London-based arm of MTS Cash, a venue owned by the London Stock Exchange Group, as it plays a role in linking sovereign borrowers with the investment banks that help price the Bonds and sell them to asset managers.
As all other European governments will gain access to MTS Cash from Milan, where the MTS began life in the late 1990s. This is the latest sign that several important low-profile components of the European Financial markets are shifting out of the City ahead of March’s Brexit.
MTS Cash trades around €13.4 billion a day across all its markets.