- 27 Jan 2021
- By CME Group
CME Group is scheduled to complete its migration of BrokerTec EU, UK and US markets onto CME Globex by February 1, 2021.
Key dates:
- Launching January 17 (trade date January 18): First day of trading for European government bond cash markets and Euro and Sterling repo
- Launching January 31 (trade date February 1): First day of trading for US Treasuries and US repo
How to ensure your readiness:
- Review the Operational Readiness Guide: All firms should review the guidelines to ensure connectivity on day one. Review the Operational Readiness Guide.
- Create a CME Group login: Your existing GFE login and password will not work beyond January 16 in the EU and January 30 in the US. Create your account. (Video instructions.)
- Participate in a mock trading session: We are holding mock trading sessions on January 16, 23, and 30 between 9 a.m. and 11 a.m. CT. Register here.
- Ensure your firm's connectivity: Review the Production Installation and Configuration instructions. Available here.
- Get the latest GFE software: Download the new GFE version. Available here.
Detailed information to support client migration is available on the BrokerTec Support Portal.
BrokerTec Stream, a robust, relationship-based streaming platform for trading US Treasury markets, will be live for STP following BrokerTec's migration to CME Globex.
Leverage a single CME STP connection for both the BrokerTec order book and BrokerTec Stream.
Through April 30, 2021, clients will trade commission-free on BrokerTec Stream, with an additional incentive program that could provide credits towards BrokerTec order-book commissions, market data, and connectivity.
BrokerTec Quote is live for US repo trading, bringing an enhanced RFQ capability and efficient means of trading for dealer-to-client US Treasury repo.
Enabled by the migration to Globex, BrokerTec will launch RV Curve in Q1, creating a single place to trade US Treasury benchmark spreads.
RV Curve merges the implied spreads from the outright order books into true spread orders, with a single-threaded matching engine that ensures there is no legging risk when trading on implied spreads.
The granularity of the RV Curve bid/offer spread is expected to reduce the cost to trade, while liquidity will be enhanced through working implied orders in the BrokerTec central limit order book.
Highlights:
- RV Curve pairs will be available across all benchmark tenors with pre-defined ratio spreads that approximate the DV01 ratio on a per million basis.
- Trades are executed on yield spread. The yield of the longer tenor is taken from the outright market; the shorter tenor is calculated by adding the executed spread to the yield of the longer.
- All pairs are available for trading on a yield basis at 1/8th of a basis point.
The tick size for the benchmark 3-year Treasury Note is being reduced to help enhance price discovery and lower the cost of trading. The new minimum price increment (MPI) will be 1/8th of a 32nd. The change, which is expected in late Q1 2021, will also bring alignment with 3-Year futures where open interest has grown to $2.4B since being reintroduced with 1/8th ticks in July 2020.
Disclaimer
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. (www.FINRA.org), and is a member of the Securities Investor Protection Corporation (www.SIPC.org). BAL does not provide services to private or retail customers.
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