MTS Group, the operator of fixed income exchanges, has expanded in Spain with a new market for covered bonds. It will work alongside the existing MTS Spain, which focuses on government bonds.

The group said it was reacting to demand from issuers and dealers for a market exclusively focused on Cedulas, Spanish covered bonds. The MTS Cedulas Market will have 27 dealers participating, including Barclays, Citigroup, Goldman Sachs, and JP Morgan.