CHICAGO and LONDON, March 20,
2025 /PRNewswire/ -- CME Group, the world's leading
derivatives marketplace, today announced that it will launch a
second BrokerTec central limit order book (CLOB) for cash U.S.
Treasuries in Q3 2025. In an industry-first, the new CLOB will be
co-located in Chicago next to CME
Group's deeply liquid U.S. Treasury futures and options markets to
support trading between cash and derivatives markets.
"As clients navigate this period of heightened uncertainty and
record debt issuance, U.S. Treasury spread trading continues to
drive price discovery and liquidity across cash, futures and repo
markets," said Mike Dennis, Global
Head of Fixed Income, CME Group. "By launching a new trading venue,
we will bring the full U.S. Treasury ecosystem closer together,
delivering simplicity and efficiency for global market
participants."
"Until now, clients have had to manage the intricacies of
deploying relative value strategies between New York and Chicago markets, which can lead to legging
risk," said John Edwards, Global
Head of BrokerTec. "Our new CLOB will greatly enhance the client
experience for cash versus futures strategies. By allowing smaller
notional sizes and adjusting minimum price increments, it will also
enable smaller firms to participate in spread trading, broadening
and deepening the liquidity pool and increasing matching
opportunities."
BrokerTec's existing New
York-based CLOB will remain its primary venue for price
discovery in cash U.S. Treasuries, with February 2025 average daily notional volume
(ADNV) of $113 billion. The second
Chicago CLOB, operated by BrokerTec Americas LLC, will complement
this offering by focusing on relative value strategies. Clients
will be able to trade all seven of BrokerTec's
on-the-run benchmark U.S. Treasuries in smaller notional
sizes to align with the futures market, and at tighter price
increments of 1/16th of a 32nd, to allow for more precise
hedging.
Available on Globex, the new venue leverages the existing
BrokerTec API and can be accessed via clients' existing CME Group
connectivity. It will be available for client testing beginning on
April 27, 2025.
BrokerTec is a leading marketplace for benchmark cash U.S.
Treasuries and U.S. and EU repo transactions. On March 3, 2025, it set an all-time single-day
volume record of $1.05 trillion in
ADNV traded across its dealer-to-dealer CLOB, dealer-to-client
request-for-quote, and streaming platforms.
CME Group's U.S. Treasury futures and options hit an all-time
daily volume record on February 25,
with 40,664,890 contracts traded.
For more information, visit
https://www.cmegroup.com/chicago-CLOB.
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex platform,
fixed income trading via BrokerTec and foreign exchange trading on
the EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC
and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a
product of S&P Dow Jones Indices LLC ("S&P DJI").
"S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are
trademarks of Standard & Poor's Financial Services LLC; Dow
Jones®, DJIA® and Dow Jones Industrial Average are service and/or
trademarks of Dow Jones Trademark Holdings LLC. These trademarks
have been licensed for use by Chicago Mercantile Exchange Inc.
Futures contracts based on the S&P 500 Index are not sponsored,
endorsed, marketed, or promoted by S&P DJI, and S&P DJI
makes no representation regarding the advisability of investing in
such products. All other trademarks are the property of their
respective owners.
BrokerTec Americas LLC. ("BAL") is a registered broker-dealer
with the U.S. Securities and Exchange Commission, is a member of
the Financial Industry Regulatory Authority, Inc. (www.FINRA.org),
and is a member of the Securities Investor Protection Corporation
(www.SIPC.org). BAL does not provide services to private or retail
customers.
CME-G
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SOURCE CME Group
