Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Repo news
  3. BrokerTec US repo ADNV up 4% for September, says CME Group
Repo news

BrokerTec US repo ADNV up 4% for September, says CME Group


03 October 2024 US, Europe
Reporter: Daniel Tison

Generic business image for news article
Image: Anusorn/stock.adobe.com
CME Group has revealed a “surge” in global bond markets for September, particularly in US Treasuries and repo markets, as investors “braced for major shifts” in central bank policies.

BrokerTec reported US$824 billion in average daily notional value (ADNV) across its platforms, reflecting heightened market activity in the wake of central bank decisions.

The ADNV for US repo reached US$306 billion in September, representing a 4 per cent growth from both the previous month and the same period last year.

According to the platform, Federal Reserve’s 50bps rate reduction left rates at a new range of 5 to 4.75 per cent, driving increased activity in repo markets.

CME says that much of the boost came from new US Treasury issuances and continued quantitative tightening of US$60 billion per month.

Money market funds also hit a new record of US$6.424 trillion, further supporting repo market volumes.

In Europe, repo volumes bounced back following the ”traditional summer slowdown”, CME says.

BrokerTec’s European repo market saw a 6 per cent increase from August, reaching €287 billion in ADNV.

Central bank decisions once again played a pivotal role, CME says, with the European Central Bank (ECB) reducing its deposit rate by 25bps on 12 September.

US Treasury trading on BrokerTec hit US$119 billion in ADNV, marking a 19 per cent year-over-year (YoY) increase — the highest level since the regional banking turmoil in March 2023.

Market participants positioned themselves ahead of the Federal Reserve’s policy decision on 18 September, which saw a 50bps rate cut.

Liquidity remained resilient during this period of volatility, the firms says, with the 5-Year Note's depth increasing by 35 per cent YoY, highlighting strong investor demand.

Additionally, BrokerTec's relative value (RV) product suite hit a new record, with an average daily volume (ADV) of US$2.7 billion in September, up 40 per cent from the previous quarter.

According to CME, this indicates a growing interest in relative value trading strategies as market participants navigated interest rate changes.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Liquidity
→ Repo
→ Volatility

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →