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.
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.
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.
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.