The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Sovereign Debt: Debt trading to open up under DMO plan

Dramatic change ahead for quoting obligations and multiple trading platforms in sovereigns market.

Europe’s debt management offices are set to put in place a new mechanism for monitoring their primary dealers’ performance in meeting quotation obligations. The European Primary Dealers Association meeting that takes place on October 24 is likely to see market participants approve proposals discreetly made in May by Belgium, Denmark, Finland and the Netherlands that seek to reconcile the DMOs’ objectives of monitoring their primary dealers’ market-making obligations with supporting competition among electronic trading platforms.

DMOs use the EuroMTS platform to measure the performance of their primary dealers. Before the euro was introduced, the smaller European sovereigns’ debt was marginalized to a large extent because dealers concentrated on trading the larger markets such as Germany, France and Italy. So these peripheral countries embraced MTS – which was the first platform to give them the ability to check on quotation obligations electronically. They made secondary market-making commitments on the trading platform part and parcel of score cards used to evaluate overall primary dealership performances. Scoring well is essential to winning the bond mandates that pay fees and boost new-issue league table positions.

But this arrangement has raised the ire of other platform players that have complained that it effectively amounts to unfair competitive practices.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree