BrokerTec Introduces Repo Trading as a Spread to €STR

Rhea-AI Summary

BrokerTec announces new opportunities to trade European repo as a spread to €STR, offering more flexibility to clients in a fluctuating interest rate environment.

Positive

• Clients can now trade European repo as a spread to €STR, providing efficient hedging for term repo trading. Clearing available with LCH RepoClear SA. CME Group's €STR futures have seen open interest grow to over 16,000 contracts.

Negative

• None.

LONDON, Oct. 6, 2023 /PRNewswire/ -- BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced a range of new opportunities to trade European repo as a spread to the Euro Short-Term Rate (€STR).

The new functionality offers more flexibility to clients, with efficient hedging for term repo trading in a fluctuating interest rate environment. Clients can clear the trades with LCH RepoClear SA.

"In today's uncertain interest rate environment, clients are seeking new tools to trade term repo," said John Edwards, Global Head of BrokerTec. "This enhancement expands on our industry-leading central limit order book for trading European repo, with clearing available from day one to support the industry's need for efficient electronic trading."

The enhancement from BrokerTec means that trading repo as a spread to €STR is now available in all European repo markets except for Italy and Spain, adding to an existing opportunity to trade French repo vs €STR already provided by BrokerTec.

Last year, CME Group launched trading in €STR futures, with open interest recently growing to over 16,000 contracts.

European repo is available for trading on the BrokerTec EU Regulated Market operated by CME Amsterdam B.V.

About CME Group

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) 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 offer 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 operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

View original content:https://www.prnewswire.com/news-releases/brokertec-introduces-repo-trading-as-a-spread-to-str-301949359.html

SOURCE CME Group

FAQ

What is the new functionality announced by BrokerTec?

BrokerTec announced new opportunities to trade European repo as a spread to €STR.

What benefits does this enhancement offer to clients?

The enhancement offers more flexibility to clients, with efficient hedging for term repo trading in a fluctuating interest rate environment.

Which clearing service is available for the trades?

Clients can clear the trades with LCH RepoClear SA.

What other markets can clients trade repo as a spread to €STR?

Clients can trade repo as a spread to €STR in all European repo markets except for Italy and Spain.

What other trading opportunity does BrokerTec provide?

BrokerTec already provides an opportunity to trade French repo vs €STR.

What is the current open interest for CME Group's €STR futures?

CME Group's €STR futures have seen open interest grow to over 16,000 contracts.

Where is European repo available for trading?

European repo is available for trading on the BrokerTec EU Regulated Market operated by CME Amsterdam B.V.