LONDON/MILAN, Nov 19 (Reuters) - The London Stock Exchange said on Monday it will move its European government bond trading from London to Italy in time for Britain’s exit from the European Union next March.
The London Stock Exchange said MTS Cash would be moved to Italy, home to Europe’s biggest government bond market.
MTS Cash manages 12 national bond markets, and only UK government bond trading, known as gilts, would be left in London.
A source said the move would be effective as of March 1, 2019, adding that MTS chief executive Fabrizio Testa recently wrote to clients to reassure them that the move and Brexit would not affect the functioning of markets.
A second source said new regulations were being currently discussed with debt management offices of the countries whose bonds are affected by the move. (Reporting by Luca Trogni and Huw Jones,)