CME announced that its expanded the BrokerTec Quote request for quote (RFQ) venue to support US corporate bond repo trades between dealers and their clients, adding to BrokerTec Quote’s government bond repo for US Treasuries, gilts and major European government bonds.
Up to now banks and their clients, who trade through the BrokerTec Quote platform, have had to conduct their government bond repo and corporate bond/MBS repo on separate venues. Now they can conduct business for different repo trades in one place. The US corporate bonds have begun trading on the market, and euro and sterling corporate bonds and USD, euro and sterling MBS will also be available from June.
BrokerTec Quote, is CME Group’s dealer-to-client (D2C) request-for-quote (RFQ) trading platform. US corporate bonds have begun trading, with the remaining products live by the end of June. Additionally, CME Group’s U.S. credit futures will begin trading on June 17, 2024.
The addition of U.S., euro and sterling corporate bonds and MBS on BrokerTec Quote creates a holistic product suite with U.S. and euro repo on all major government bonds already available to trade on the platform. Following the launch, clients will be able to conduct their risk management and fixed income financing needs from one platform. This is in addition to BrokerTec’s established dealer-to-dealer (D2D) central limit order book (CLOB) repo platform where almost $600 billion average daily notional volume (ADNV) of repo was transacted in 2023.
“In today’s dynamic and complex financial landscape, navigating the fixed income markets for mortgages and credit 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 in a statement. “We have been actively expanding BrokerTec Quote to cover repo on 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 demand from clients.”