BrokerTec 2021 Q1 Recap

BrokerTec Globex migration upcoming

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 incentive plan launching

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 live for US repo

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.


Coming soon: Efficiently trade the curve for US Treasury benchmarks

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.

3-Year US Treasury Note minimum price increment to be reduced

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.