• Expands London Stock Exchange Group's global fixed income offering through MTS
• Complementary product offering to meet needs of global customer base
• Growing trend towards electronic trading for fixed income products
MTS, part of London Stock Exchange Group, today announces that it has entered into a merger agreement to acquire Bonds.com Group ("Bonds") (BDCG.), a U.S. based platform for the electronic trading of U.S. corporate and emerging market bonds. The all-cash acquisition will see MTS Markets International Inc., a wholly-owned U.S. subsidiary of MTS, acquire 100 per cent of Bonds' outstanding shares.
MTS is a leading provider of electronic trading in the European bond markets, with more than $100 billion executed daily on average over its existing platform. Through its new U.S. subsidiary, MTS Markets International, it offers U.S. buy-side participants the ability to directly access real-time pricing from one of the deepest liquidity pools in Europe and to trade electronically with all the major European dealers via its BondVision platform.
Bonds offers real-time, executable orders on U.S. corporate bonds and emerging market debt to over 600 buy- and sell-side institutions. Currently over 90 per cent of all trades completed through the platform are conducted electronically, with customers also able to benefit from a price discovery function.
The transaction meets the growing customer and regulatory demand for access to transparent, electronic, cost-effective platforms for the trading of fixed income securities.
Jack Jeffery, CEO of MTS Group said:
"This transaction enhances MTS' position as a global provider of fixed income trading platforms and is a natural extension for both MTS and London Stock Exchange Group. The expanded product offering will enable us to meet the on-going industry and regulatory drive for greater transparency and efficiency in fixed income markets, through a competitive and cost-effective platform."
Mark Monahan, Chief Executive of MTS Markets International Inc said:
"Bonds.com Group has steadily developed its client base in the U.S. covering both buy and sell-side institutions. As a result of this transaction, MTS will be able to offer Bonds.com Group its extensive expertise in the fixed income space, investing to expand the product offering for U.S. fixed income traders to meet their domestic and international needs."
George O'Krepkie, President of Bonds.com Group Inc said:
"We are delighted to be teaming with MTS as we enter the next phase of growth and development. We believe that the trend towards greater electronic trading for fixed income products will continue as the customer base becomes increasingly global. MTS brings a wealth of experience in providing electronic platforms for fixed income trading, which will enable us to better serve our customers through increased product choice."
MTS Markets International Inc. and Bonds are both FINRA member broker dealers.
Closing is subject to customary regulatory clearance and stockholder approval and is expected in Q2 2014.