Trading efficiencies for ETFs

ETF tradingExchange-traded funds (ETFs) listed in Italy and the UK will be available through a request-for-quote service offered on the MTS BondVision platform.

The service should increase liquidity in the ETF market by bringing together dealers and institutional investors.

By offering request-for-quote as a new execution method in addition to the order-book trading functionality currently offered by Borsa Italiana and London Stock Exchange, MTS is attempting to improve the efficiency of executing ETFs and increase trading opportunities for market participants.

MTS is a Europe-based fixed income trading venue, but its broker-neutral platform will support ETFs of various asset classes, including equities.

The platform will let investors request quotes on ETFs from up to five dealers, enabling them to meet best-execution requirements, reduce risk and enhance efficiency throughout the trade lifecycle, says MTS.

ETF issuers available via BondVision include Amundi, Db X-trackers, ETF Securities, iShares, Lyxor, Ossiam, PowerShares, RBS, Source, SPDR and UBS.

Pietro Poletto, head of fixed income markets at London Stock Exchange Group, says: “The use of the request-for-quote system, via the MTS BondVision platform, will significantly enhance the efficiency of off-book trades and enable easy access for the global buy-side community in-line with their unique trading strategies.”

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