CME Group Expands Fixed Income Offerings with Corporate Bonds, Mortgage-Backed Securities

CME Group, which claims to be the leading derivatives marketplace, announced that it will continue its expansion into the fixed income markets by launching repo on corporate bonds and mortgage-backed securities (MBS) on BrokerTec Quote, its dealer-to-client (D2C) request-for-quote (RFQ) trading platform.

U.S. corporate bonds began trading “on May 20, 2024, with the remaining products live by the end of June. Additionally, CME Group’s U.S. credit futures will begin trading on June 17, 2024.”

The addition of U.S., euro and sterling corporate bonds and MBS on BrokerTec Quote creates a holistic product suite “with U.S. and euro repo on all major government bonds already available to trade on the platform.”

Following the launch, clients will be “able to conduct their risk management and fixed income financing needs from one platform.”

This is in addition to BrokerTec’s established dealer-to-dealer (D2D) central limit order book (CLOB) repo platform “where almost $600B average daily notional volume (ADNV) of repo was transacted in 2023.”

John Edwards, Global Head of BrokerTec said:

“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 a marketplace for benchmark cash U.S. Treasuries and U.S. and EU repo with $750B ADNV traded daily “across its D2D CLOB, D2C RFQ and streaming platforms.”

As the derivatives marketplace, CME Group says it “enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities.”

CME Group exchanges claim to offer some of “the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.”

The company offers futures and options “on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.”

In addition, it claims that it “operates one of the world’s leading central counterparty clearing providers, CME Clearing.”

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