CHICAGO, May 21, 2024 – CME Group, a leading player in the derivatives marketplace, is set to broaden its reach in the fixed income markets. The group has announced the launch of new repo services for corporate bonds and mortgage-backed securities (MBS) on its BrokerTec Quote platform, marking a significant expansion of its dealer-to-client (D2C) request-for-quote (RFQ) trading capabilities.

The initiative kicked off with U.S. corporate bonds beginning to trade on May 20, 2024. The rollout will continue, with additional products expected to go live by the end of June. Furthermore, CME Group is scheduled to launch U.S. credit futures on June 17, 2024, enhancing its suite of financial instruments.

BrokerTec Quote is known for its robust dealer-to-dealer (D2D) central limit order book (CLOB) repo platform, where it saw an impressive average daily notional volume (ADNV) of nearly $600 billion in repo transactions in 2023. The platform already offers U.S., euro, and sterling repo services for all major government bonds, and the addition of corporate bonds and MBS complements this existing infrastructure.

With these new offerings, BrokerTec Quote aims to provide a holistic product suite that meets the growing demand from clients for sophisticated risk management and fixed income financing solutions. The platform’s integration of various fixed income products allows clients to streamline their operations and manage their portfolios more efficiently.

John Edwards, Global Head of BrokerTec, emphasized the strategic nature of this expansion: “In today’s dynamic and complex financial landscape, navigating the fixed income markets for mortgages and credit presents unique challenges for clients who need sophisticated tools to manage their exposure and achieve their financing needs. We have been actively expanding BrokerTec Quote to cover repo on all major government bond markets in recent years. The addition of corporate bonds and MBS is a natural complement to our core offering and follows significant demand from clients.”

BrokerTec is already a leading marketplace for benchmark cash U.S. Treasuries as well as U.S. and EU repo, boasting $750 billion ADNV traded daily across its various platforms including D2D CLOB, D2C RFQ, and streaming services. This expansion is expected to solidify its position further as a key player in the global fixed income market.

Clients and investors interested in learning more about BrokerTec Quote and its expanded offerings can visit the CME Group’s dedicated page at BrokerTec Quote.

The expansion of BrokerTec Quote’s offerings demonstrates CME Group’s commitment to meeting the evolving needs of the financial markets, providing clients with comprehensive tools and platforms to navigate the complexities of fixed income investments and risk management.