CME Group reported that in September, BrokerTec US Repo average daily notional value (ADNV) increased 22% to $242.8 billion while European Repo ADNV increased 13% to €297.8 billion ($345.8bn) and US Treasury ADNV increased 4% to $98.7 billion year-over-year.
Looking at Q3 figures yoy: US Repo ADNV increased 18% to $230 billion, European Repo ADNV increased 12% to €293 billion and US Treasury ADNV increased 5% to $98 billion.
In a statement announcing the results, John Edwards, global head of BrokerTec, commented:
US Treasury Benchmark volumes improved in September ($98.7 billion) vs. August ($90.4 billion). With the potential reduction of asset purchases forthcoming and continued uncertainty over the US debt ceiling, yields increased considerably leading to higher volumes overall, with more market volatility evident in the last few trading days of September in particular. The Relative Value (RV) Curve spread product continues to see strong client demand and is increasingly being used around key risk events.
In US repo, BrokerTec experienced a minor uptick in volume in September vs. August. This was due to a steady increase of cash in the US Repo market demonstrated by a new record of 1.6 trillion on September 30th as a result of the Fed Reverse Repo Program. The IDB Repo Market traded below .05% most of the time which kept volumes in the GC/GCF sector lower than usual, with most activity conducted in Specials.
In EU Repo, repo rates on BrokerTec remained stable across both sterling and euro markets. But, as we emerged from the summer vacation period, volumes have picked up across September with ADV at €297.8 billion nominal. We have also seen stronger Term Repo activity on the platform with a recent high Term Adjusted volume on Sept 14th of €490 billion. We continue to see steady but growing interest in the Next Gen EU Bonds on Repo over BrokerTec as more Bonds and Bills are issued.