BrokerTec Relative Value Curve Spread Trading Sets Single-Day and Weekly ADV Record

Rhea-AI Summary

On February 10, BrokerTec achieved a record of $2.83 billion in single-day notional volume for its Relative Value (RV) Curve spread trading. Additionally, a weekly average daily notional volume of $1.47 billion was recorded during the week of February 7, 2022. This surge in trading activity reflects clients' growing reliance on RV Curve to manage risks amid volatile market conditions influenced by rising U.S. inflation and changing bond yields. The RV Curve tool allows trading of predefined U.S. Treasury benchmark spreads efficiently.

Positive

• Single-day volume record of $2.83 billion achieved on February 10, 2022.
• Weekly average daily notional volume record of $1.47 billion during the week of February 7, 2022.
• Growing interest in RV Curve products since their launch in March 2021.

Negative

• None.

LONDON, Feb. 15, 2022 /PRNewswire/ -- BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced that Relative Value (RV) Curve spread trading achieved a single-day, volume record of $2.83 billion notional on February 10, and a weekly average daily notional volume (ADNV) record of $1.47 billion achieved during the week of February 7, 2022.

"In volatile markets, clients are increasingly turning to RV Curve to efficiently manage their risk along the curve – particularly in a week when the market had to digest higher-than-expected U.S. inflation numbers, 10-year note yields surpassing 2%, and the 30-year Treasury bond auction," said John Edwards, Global Head of BrokerTec. "Since their launch in March 2021, these products have received growing interest because they bridge liquidity across BrokerTec's central limit order book allowing clients to seamlessly trade benchmark curve spreads at tighter increments and without legging risk."

RV Curve allows clients to trade pre-defined cash U.S. Treasury benchmark spreads as a yield differential and in a single order for the first time. The tool offers 21 spreads, providing a full view of the relationships between 2-, 3-, 5-, 7- and 10-year Treasury notes and 20- and 30-year Treasury bonds. 

For more information on RV Curve, please visit: www.cmegroup.com/rvcurve.  

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. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners. 

CME-G

View original content:https://www.prnewswire.com/news-releases/brokertec-relative-value-curve-spread-trading-sets-single-day-and-weekly-adv-record-301482710.html

SOURCE CME Group

FAQ

What record did BrokerTec set on February 10, 2022?

BrokerTec set a single-day volume record of $2.83 billion in Relative Value Curve spread trading on February 10, 2022.

What is the average daily notional volume for BrokerTec during the week of February 7, 2022?

The average daily notional volume for BrokerTec during the week of February 7, 2022, was $1.47 billion.

Why are clients turning to RV Curve trading?

Clients are increasingly using RV Curve to manage risk more effectively amid market volatility and rising U.S. inflation.

When was the RV Curve tool launched?

The RV Curve tool was launched in March 2021.

What does the RV Curve allow clients to do?

The RV Curve allows clients to trade predefined cash U.S. Treasury benchmark spreads as a yield differential in a single order.