BrokerTec Integrates Relative Value Curve Spread Trading with Broadway Technology

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Mar 24, 2022, 08:00 ET

CHICAGO and LONDON, March 24, 2022 /PRNewswire/ -- BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced that it has partnered with Broadway Technology to make its Relative Value (RV) Curve spread trading functionality available on Broadway's Toc platform.

The integration provides mutual clients with access to the full RV Curve product suite to increase execution efficiencies by merging liquidity from BrokerTec's industry-leading central limit order book with a single-threaded matching engine to eliminate legging risk, provide inside liquidity, and increase matching opportunities when trading benchmark spreads.

"We're pleased to collaborate with Broadway to bolster liquidity and grow the ecosystem of clients participating in U.S. Treasury spread trading on BrokerTec," said Sean Hodgson, Executive Director, BrokerTec Products. "Clients increasingly are turning to RV Curve to efficiently manage their risk along the curve with 42 clients trading over $125bn notional volume to date."

"Since its inception, Broadway has established itself as a trusted partner to the trading community with a legacy of innovation that has armed our clients with the most complete functionality they need to maximize their fixed income trading operations," said Bruce Boytim, COO of Broadway. "As spread trading continues to be a growing priority for our clients, we're proud to be able to offer them access to BrokerTec RV Curve and give them a more efficient way to trade the U.S. Treasury curve. By partnering closely with BrokerTec to support its complete offering and introduce this new functionality to Broadway clients, we can bring the tangible benefits of RV Curve to a broader portion of the trading community." 

BrokerTec launched RV Curve in 2021 to allow market participants to trade pre-defined cash U.S. Treasury benchmark spreads as a yield differential and in a single order for the first time. The tool offers 21 spreads, providing a full view of the relationships between 2-, 3-, 5-, 7- and 10-year Treasury notes and 20- and 30-year Treasury bonds. By allowing trades to be executed in a single order, clients can trade the yield curve more efficiently and without legging risk or price slippage.

For more information on RV Curve, please visit: www.cmegroup.com/rvcurve.

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.

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 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 and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.

SOURCE CME Group