The London Stock Exchange has launched a UK government bond trading service as part of the exchange's ongoing effort to diversify its business and reduce its reliance on British share trading. The LSE bond trading business MTS said on Wednesday the inclusion of UK government bonds, known as gilts, takes to 17 the number of European sovereign bonds on the system and "several leading international banks" had pledged to use the system.
"The launch of this platform marks a great step forward for the UK sovereign debt market, which continues to see a rapid evolution," said Jack Jeffery, Chief Executive of MTS. Jeffery, formerly a senior bond trader at ICAP Plc , said the addition of UK bonds was timely, given the increased focus on transparency from regulators keen to cast light on the over-the-counter (OTC) markets. Inter-dealer brokers such as ICAP and rivals BGC Partners, GFI and Tullett Prebon offer investment banks the ability to trade gilts over the phone or through electronic systems.
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