MTS, the European government bond trading system, has hit back at claims by the world's largest inter-dealer broker that it is anti-competitive, arguing its rivals have been unwilling to make the investment necessary to compete.

Ciro Pietroluongo, the chairman of the MTS management board, said yesterday he "strongly challenge the assertions" made by Icap on Tuesday that MTS has a privileged position with regard to the European government bond markets, including Italy.