CME Group to launch BrokerTec US Treasury CLOB in Chicago
20 March 2025 US
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CME Group will launch a second BrokerTec central limit order book (CLOB) for cash US Treasuries in Q3 2025, the derivatives marketplace has confirmed.
The new CLOB, available for client testing from 27 April, will be co-located in Chicago next to CME Group’s US Treasury futures and options markets to support trading between cash and derivatives markets.
Mike Dennis, global head of fixed income at CME Group, comments: “As clients navigate this period of heightened uncertainty and record debt issuance, US Treasury spread trading continues to drive price discovery and liquidity across cash, futures, and repo markets.
“By launching a new trading venue, we will bring the full US Treasury ecosystem closer together, delivering simplicity and efficiency for global market participants.”
Available on Globex, the new venue uses the existing BrokerTec API and can be accessed via clients’ CME Group connectivity.
BrokerTec’s New York-based CLOB will remain its primary venue for price discovery in cash US Treasuries.
The second Chicago CLOB, operated by BrokerTec Americas, will complement this offering by focusing on relative value strategies.
Clients will be able to trade all seven of BrokerTec’s on-the-run US Treasuries in smaller notional sizes to align with the futures market, and at tighter price increments of 1/16th of a 32nd, to allow for more precise hedging.
John Edwards, global head of BrokerTec, explains: “Until now, clients have had to manage the intricacies of deploying relative value strategies between New York and Chicago markets, which can lead to legging risk.
“Our new CLOB will enhance the client experience for cash versus futures strategies. By allowing smaller notional sizes and adjusting minimum price increments, it will also enable smaller firms to participate in spread trading, broadening and deepening the liquidity pool, and increasing matching opportunities.”
The new CLOB, available for client testing from 27 April, will be co-located in Chicago next to CME Group’s US Treasury futures and options markets to support trading between cash and derivatives markets.
Mike Dennis, global head of fixed income at CME Group, comments: “As clients navigate this period of heightened uncertainty and record debt issuance, US Treasury spread trading continues to drive price discovery and liquidity across cash, futures, and repo markets.
“By launching a new trading venue, we will bring the full US Treasury ecosystem closer together, delivering simplicity and efficiency for global market participants.”
Available on Globex, the new venue uses the existing BrokerTec API and can be accessed via clients’ CME Group connectivity.
BrokerTec’s New York-based CLOB will remain its primary venue for price discovery in cash US Treasuries.
The second Chicago CLOB, operated by BrokerTec Americas, will complement this offering by focusing on relative value strategies.
Clients will be able to trade all seven of BrokerTec’s on-the-run US Treasuries in smaller notional sizes to align with the futures market, and at tighter price increments of 1/16th of a 32nd, to allow for more precise hedging.
John Edwards, global head of BrokerTec, explains: “Until now, clients have had to manage the intricacies of deploying relative value strategies between New York and Chicago markets, which can lead to legging risk.
“Our new CLOB will enhance the client experience for cash versus futures strategies. By allowing smaller notional sizes and adjusting minimum price increments, it will also enable smaller firms to participate in spread trading, broadening and deepening the liquidity pool, and increasing matching opportunities.”
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