International Derivatives Market The CME Group announced today that it will continue its expansion into the fixed income markets by launching repos in corporate bonds and mortgage-backed securities (MBS) on BrokerTec Quote, the dealer-to-client (D2C) quote request. (RFQ) trading platform.
US corporate bonds began trading on 20 May 2024, with the remaining products live until the end of June. In addition, CME Group’s US credit futures will begin trading on June 17, 2024.
The addition of US, Euro and Sterling corporate bonds and MBS to BrokerTec Quote creates a holistic product suite with US and Euro repos on all major government bonds already available for trading on the platform. After launch, clients will be able to handle their risk management and fixed income financing needs from one platform.
This is in addition to BrokerTec’s established Central Limit Order Book (CLOB) repo platform, where nearly $600 billion was traded through notional daily volume (ADNV) repo in 2023.
“In today’s dynamic and complex financial landscape, navigating the fixed income mortgage and credit markets presents unique challenges for clients who need sophisticated tools to manage their exposure and achieve their financing needs,” said John Edwards, Global Head of BrokerTec. “We have been actively expanding BrokerTec Quote to cover repos in all major government bond markets in recent years. The addition of corporate bonds and MBS is a natural complement to our core offering and follows significant client demand.”
BrokerTec is a leading reference cash market for US Treasuries and US and EU repos with $750 billion ADNV traded daily on its D2D CLOB, D2C RFQ and streaming platforms.