BrokerTec Launches First-Ever U.S. Treasury Benchmark Spread Trading Capability

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Mar 24, 2021, 06:00 ET

NEW YORK and CHICAGO, March 24, 2021 BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, this week launched Relative Value (RV) Curve spread trading, allowing clients to trade cash U.S. Treasury benchmark spreads in a single order for the first time. As a result, market participants are able to trade spreads across the yield curve more efficiently and without legging risk.

"Following the successful migration of BrokerTec onto the CME Globex platform, we are pleased to launch the RV Curve product that creates a new, single order type to merge implied spreads from outright order books with true spread orders for U.S. Treasuries," said Sean Hodgson, Executive Director, BrokerTec Products. "RV Curve will increase matching opportunities and enhance overall liquidity and market efficiency for our clients through a more effective execution of cash Treasury spreads."

Through BrokerTec RV Curve, market participants can easily trade pre-defined ratio spreads between cash benchmark U.S. Treasuries as a yield differential. All spreads tradable will be available at 1/8th of a basis point (0.00125), regardless of the minimum price increment of the underlying instruments, providing greater matching and liquidity opportunities. RV Curve offers 21 spreads, providing a full view of the relationships between 2-year, 3-year, 5-year, 7-year and 10-year Treasury notes and 20-year and 30-year Treasury bonds.

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

BrokerTec is part of CME Group. As the world's leading and most diverse 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. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

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SOURCE CME Group