CME Group Launches First Price Comparison Tool for Listed and Cash U.S. Treasuries: UST Market Profile
CME Group has launched the UST Market Profile, a pioneering tool for bond traders that integrates listed Treasury futures with BrokerTec cash treasuries. This innovative platform enables users to analyze liquidity, optimize trading methods, and minimize market impact during trades. Key features include real-time views of bid-ask spreads and market activity across various maturities. Additionally, it allows access to historical averages for informed decision-making, enhancing execution efficiency and risk management in U.S. Treasury markets. The tool will include 20-Year U.S. Treasury Bond futures from March 7, pending regulatory review.
- Launch of UST Market Profile tool to enhance trading efficiency.
- Provides insights for identifying execution efficiencies in Treasury markets.
- Includes real-time bid-ask spread and order book depth data.
- Historical data access for better decision-making available up to six months.
- None.
CHICAGO and LONDON, Feb. 16, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced it has launched UST Market Profile, the industry's first tool to bring together listed Treasury futures and BrokerTec cash treasuries in one comprehensive view for global bond traders to trade more efficiently between these two highly complementary liquidity pools.
The new UST Market Profile tool allows market participants to identify execution efficiencies across CME Group's listed futures and BrokerTec cash treasuries. Bond traders can use the tool to compare and analyze liquidity, determine the optimal trading method and time of day to transact and minimize the market impact of their trades. The UST Market Profile provides an hour-by-hour view of bid-ask spreads, order book depth, market activity and volume across several maturities for listed futures and cash treasuries. Additionally, 20-Year U.S. Treasury Bond futures will be viewable in the UST Market Profile tool following their introduction on March 7, pending regulatory reviews.
"By accessing UST Market Profile, market participants will be able to identify patterns of deep liquidity and tight bid-ask spreads across listed futures and cash treasuries markets for the first time ever," said Agha Mirza, Global Head of Rates and OTC Products, CME Group. "Clients can view daily, weekly or monthly historical averages over a period of up to six months to allow them to make informed decisions about how best to minimize costs, achieve execution efficiencies and manage interest rate risk in U.S. Treasury markets."
"UST Market Profile highlights the value of bringing BrokerTec onto the CME Globex platform and allowing these two important markets to be traded side-by-side," said John Edwards, Global Head of BrokerTec. "While there are microstructure differences between futures and cash treasuries, the tool provides market participants with valuable insights to better understand and capitalize on opportunities in both markets."
During periods of increased volatility, including market-moving events such as inflation figures, jobs numbers or key U.S. Treasury debt auctions, the UST Market Profile tool can provide participants with greater transparency to improve decision making. Additionally, users can see where the tightest top of book prices are across time zones and what depth is available in both CME Group and BrokerTec U.S. Treasuries central limit order books.
The new tool builds on the success of CME Group's FX Market Profile tool launched in 2020. For more information on UST Market Profile, please visit www.cmegroup.com/ustprofile.
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.
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SOURCE CME Group
FAQ
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