CME Group has announced plans to introduce a second BrokerTec central limit order book (CLOB) for cash US Treasuries in the third quarter of 2025. The new platform, available for client testing from April 27, will be co-located in Chicago alongside CME Group’s US Treasury futures and options markets to facilitate trading between cash and derivatives.
Enhancing Liquidity and Efficiency
Mike Dennis, global head of fixed income at CME Group, highlighted the importance of this initiative, stating, “As clients navigate heightened uncertainty and record debt issuance, US Treasury spread trading remains crucial for price discovery and liquidity across cash, futures, and repo markets. This new venue will bring the full US Treasury ecosystem closer together, enhancing efficiency for global participants.”
The new order book, available on CME Globex, will use the existing BrokerTec API and can be accessed through CME Group’s connectivity infrastructure.
Complementing BrokerTec’s Primary Venue
While BrokerTec’s New York-based CLOB will continue to serve as the primary platform for price discovery in cash US Treasuries, the new Chicago-based CLOB—operated by BrokerTec Americas—will focus on relative value strategies.
Clients will have the ability to trade all seven of BrokerTec’s on-the-run US Treasuries in smaller notional sizes, aligning with futures markets. The order book will also feature tighter price increments of 1/16th of a 32nd, allowing for more precise hedging.
Reducing Risk and Expanding Market Access
John Edwards, global head of BrokerTec, emphasized the advantages of the new platform, stating, “Until now, clients managing relative value strategies had to navigate market differences between New York and Chicago, increasing legging risk. Our new CLOB will streamline cash-versus-futures trading, improve liquidity, and provide greater access for smaller firms, ultimately enhancing the overall market structure.”
With this expansion, CME Group aims to strengthen US Treasury market efficiency while broadening participation and reducing execution risks for traders and investors.
