CME Group announced that Citigroup, J.P. Morgan, and Morgan Stanley will be available to trade cash U.S. Treasuries on BrokerTec Chicago when it launches on October 6. This significant participation from major financial institutions underscores strong market support for the new central limit order book (CLOB). It enhances the credibility and potential liquidity of the platform.
BrokerTec Chicago is designed to be co-located with CME Group's deeply liquid U.S. Treasury futures and options markets. This strategic positioning aims to streamline trading between cash and derivatives markets, offering enhanced efficiency for global market participants. The new CLOB will allow smaller notional sizes and tighter price increments, broadening the liquidity pool.
The involvement of these leading financial institutions is crucial for the success of BrokerTec Chicago. It validates CME Group's initiative to bring the full U.S. Treasury ecosystem closer together. This development is expected to attract new participants and enhance basis trading, reinforcing CME Group's leadership in fixed income markets.
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