Built from the ground up and based on direct collaboration with the repo community, BrokerTec Quote continues to attract new users and bigger volumes:
In response to client demand, BTEC Quote has expanded its product offering to include Australian Sovereign Bonds for repo trading, with further new markets scheduled for early 2022. This is the latest in a series of client-led enhancements aimed at providing the D2C repo community with a best-in-class RFQ protocol.
Several factors continue to drive increased repo trading including excess cash from fiscal spending, a lack of short-end fixed income investments, and borrowing securities to short them. Demand for quality repo trading remains robust and given BrokerTec’s position in EU and U.S. Repo, volumes on the CLOB reached near record highs in October:
BrokerTec RV Curve ADV hit a record $560M in October, with a growing list of participants taking advantage of inside pricing and zero legging risk on their U.S. Treasury benchmark spreads.
Enabled by its partnership with TransFICC, which makes it easier than ever for liquidity providers to connect, BrokerTec Stream is becoming an increasingly attractive platform for clients looking to add bilateral streaming to their UST actives mix.
Why BrokerTec Stream?
To build liquidity in NGEU bonds, which are available to trade on BrokerTec for cash and repo (CLOB and Quote) transactions, BrokerTec launched a market-making program on Nov. 1.
As a reminder, NGEU bonds have also been added to the EU bonds GC basket, which contains eligible cleared NGEU bonds, EU SURE and EU older issued bonds.
The CME Group Treasury Analytics tool has been upgraded to include cash U.S. Treasuries data sourced from BrokerTec's leading D2D CLOB, including:
Monetary Seesaw – The Treasury and Fed at Opposite Ends
As the Treasury decreases coupon issuance by nearly $80 billion in the upcoming quarter, the Fed is set to decrease asset purchases, which could present interesting moves in interest rate markets.
Why the Market Should Watch Special U.S. Repo
As markets focus on inflation and the debt ceiling, the Federal Reserve Bank of New York has become more active in lending specific securities.
Data as of October 29, 2021, unless otherwise specified.