- 21 Nov 2023
- By CME Group
Announcing RV Butterflies, BrokerTec's next innovation in RV spread trading with eight Globex-listed three-leg combinations of U.S. Treasury Actives. These will be listed in pre-defined DV01-neutral leg ratios and traded on a yield spread. Deployment in the New Release environment began on November 20, and production deployment is targeted for January 29, 2024. The value proposition for clients includes:
- No legging risk - Orders are matched at the atomic level
- Implied functionality - Enhanced liquidity in & out of the outright UST CLOB
- Inside liquidity available - MPI of 0.10 of a basis point
- Excess rounding efficiencies - Savings that come from rounded yields on implied executions
- Shared Front End, STP, and Connectivity with the CLOB
Several important updates to the BrokerTec Quote platform bring new functionality to users and further enhance the product offering:
- The Axe Board is now live - This feature allows sell side institutions to publish selected inventory to the buy side, allowing for an RFQ to be generated based upon mutual interest.
- Enhanced visibility of maturing trades on the "Rolls" tab, making it easy to see maturing trades and renegotiate.
- New markets on Quote - extending the choice of collateral for Repo in government bonds in the following currencies and nations:
- Canadian dollar (CAD) government securities
- Hungarian forint (HUF) government securities
- Polish zloty (POL) government securities
More new features are coming in the months ahead, but please visit the BrokerTec Quote home page for further platform details.
As part of our goal to automate trade execution, securities lending has been added to other secured financing transactions for Euro collateral, such as repo and buy/sell backs, which are already supported on the Quote platform. GBP and USD secured financing are under review to be introduced, subject to regulatory approval.
Trading options available currently feature upgrade/downgrade transactions, single security versus GC or triparty collateral, with cash pool collateral soon to follow. Current functions such as Axe Boards, Rolls, and life cycle events are fully supported for securities lending trades over BrokerTec Quote.
Important milestones have recently fallen for €STR futures as more activity reaches new levels. Highlights include:
- OI ~26,000
- More than 100 participants
- Over 1,2M contracts traded
Learn more about this contract which is quickly becoming the go-to choice for participants seeking to hedge overnight European money market risk.
BrokerTec customers can also trade floating €STR on the platform, allowing for new opportunities in short-term European repo markets.
View an archive of the Rates Recap online at cmegroup.com/ratesrecap.
The latest BrokerTec updates further improve the trader experience. Top highlights of this software upgrade include:
- Sweepable matching - Executable in Stream 2.0 via a UI toggle
- Tick Up/Down Live Orders - New buttons added to "Book" tab to change order prices in one tick increments.
- More €STR repo support - New import options in bulk order manager
See the full details by logging into BrokerTec, or see the highlights and contact information below:
The new and improved BrokerTec Stream platform is designed to deliver the best performance and lowest possible latency for clients.
The latest features include:
- FIX 4.4-compliant APIs for Makers and Takers
- Sweepable matching
- Firm price improvements
- Front-end access via BrokerTec GFE Client
The latest round of updates also paves the way for future enhancements, including netted credit across BrokerTec markets on CME Globex.
Looking for historical data? Utilize the CME Group Reference Data Warehouse (RDW) to streamline and automate the process across futures and options, BrokerTec, and EBS.
In addition to the bevy of improvements to the platform as of late, there are several key features in development including:
- Extending existing securities lending program to specific bonds v. triparty baskets
- Inventory matching to highlight shared interest
- Balances, netting, and limits monitoring service to provide real time info
The content in this communication has been compiled by CME Group for general purposes only and is not intended to provide, and should not be construed as, advice. Although every attempt has been made to ensure the accuracy of the information within this communication as of the date of publication, CME Group assumes no responsibility for any errors or omissions and will not update it. Additionally, all examples and information in this communication are used for explanation purposes only and should not be considered investment advice or the results of actual market experience. This communication does not (within the meaning of any applicable legislation) constitute a Prospectus or a public offering of securities; nor is it a recommendation to buy, sell or retain any specific investment or service.
CME Group does not represent that any material or information contained in this communication is appropriate for use or permitted in any jurisdiction or country where such use or distribution would be contrary to any applicable law or regulation. In any jurisdiction where CME Group is not authorized to do business or where such distribution would be contrary to the local laws and regulations, this communication has not been reviewed or approved by any regulatory authority and access shall be at the liability of the user.
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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. (https://brokercheck.finra.org/), and is a member of the Securities Investor Protection Corporation (www.SIPC.org). BAL offers products and services in relation to U.S. Treasury Benchmark instruments, Repurchase and Reverse Repurchase instruments, including U.S. Treasury, Government of Canada, Corporate and Mortgage-backed products. BAL does not provide services to private or retail customers. All investments involve risk of loss, particularly in terms of fluctuations in value and yield. If an investment is denominated in a currency other than your base currency, exchange rate fluctuations may have a favorable or unfavorable impact. Further, there are risks associated with investing in fixed income asset classes that include, but are not limited to, market risk, interest rate risk, default risk, event risk, credit risk, and government security risk.
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