See below, from today’s FT. Old news to most in the FI e-trading space, however when the topic came up during the Hedge Fund panel at the SIFMA conference the panelists tended to ask why? Unless you wish to become a bank……

Hedge funds seek access to eurozone bonds
By Gillian Tett in London

Published: February 26 2007 22:50 | Last updated: February 27 2007 00:57

A battle has erupted around the eurozone government bond market with several powerful hedge funds trying to gain direct access to MTS, the main eurozone government bond trading platform.

The move by the funds, which include groups such as Citadel and Vega, could potentially undermine the control that investment banks wield over Europe’s government bond market.”

Personally I can see the appeal of anonymity to these guys….but the spreads on MTS will tend to be wider than on a B2C ECN such as TradeWeb or even MTS’s own BondVision system. In saying that, they will clearly be targeting the genuine, lumpy axes that are posted – whilst adding their own – whilst still trading via the phone/B2C systems.