11.04.2021

Cboe to Launch US Treasuries Trading Platform

– New interdealer trading platform for U.S. Treasuries leverages proven capabilities of Cboe

– Designed to provide high-quality order flow, reduced market impact and price improvement opportunities

– Unique trading model combines Cboe’s Full Amount technology with custom liquidity and analytics

Cboe Global Markets, a leading provider of global market infrastructure and tradable products, announced plans to introduce a new dealer-to-dealer electronic trading platform for On-The-Run U.S. Treasuries. The platform (“Cboe Fixed Income”) will be Cboe’s first cash U.S. Fixed Income product offering, further diversifying and expanding its products, services and technology offerings into new markets and geographies around the world. Cboe Fixed Income is planned for launch in the second quarter of 2022, subject to regulatory approvals.

The new trading platform is designed to better enable dealers in U.S. Treasuries to efficiently source liquidity and trade in size, while reducing market impact. This new platform will leverage the expertise and proven track record of Cboe FX, a global leader in electronic trading for 20 years with a reputation for world-class technology, cutting-edge liquidity solutions, product innovation and trading reliability and efficiency.

“We are excited to bring the best of what we do in the global FX market to the U.S. Treasuries space,” said Jonathan Weinberg, Senior Vice President and Head of FX and U.S. Treasuries at Cboe Global Markets. “Cboe Fixed Income is designed to address some of the biggest challenges that dealers face today, including flow segmentation, information leakage and high hedging costs. We believe the new trading platform will provide a unique solution that enables liquidity providers to interact directly with high-quality order flow, reduce market impact and receive opportunities for price improvement.”

Cboe Fixed Income will bring Cboe’s Full Amount technology – which enables large order risk transfer with low impact – together with its liquidity curation and analytics capabilities to further enhance trading in U.S. Treasuries. The powerful combination of these capabilities is expected to create a high-value offering that differs from other interdealer trading models in the marketplace.

Through the Full Amount matching protocol, liquidity consumers will be able to transact against the best quote from a single liquidity provider, while satisfying the full amount of the order to help minimize information leakage and slippage. Trades also will print in single executions, reducing ticket costs.

In addition, Cboe Fixed Income will provide customized liquidity curation services to help participants effectively manage liquidity segmentation. Cboe expects to actively engage with customers to analyze flows, provide valuable insights to make better-informed trading decisions, and continuously optimize the trading experience for liquidity consumers and providers.

“With our footprint covering the world’s largest and most liquid marketplaces, we are excited to enter the U.S. Treasuries market and further broaden Cboe’s market operations on a global scale,” said Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets. “Fixed Income represents an untapped market for Cboe with many exciting product possibilities, and we look forward to extending our innovative technology and trading solutions to this asset class to serve an even broader base of market participants.”

Cboe Fixed Income is in the process of registering with the Securities and Exchange Commission (SEC) as a government securities broker-dealer and becoming a member firm of the Financial Industry Regulatory Authority (FINRA). Participants can code to the Cboe Fixed Income technology specifications, and access to the platform is also expected to be made available through key vendors in the marketplace. For additional information, please contact FISales@cboe.com.boe

Source: Cboe

Related articles

  1. Machines 'Learn' Liquidity

    Participants are looking to connect with alternative liquidity providers.

  2. The Swiss exchange group issued the first bond with a pure digital part in a fully regulated environment.

  3. Emerging Market FX Trading: Liquidity Challenges

    There was record trading in emerging markets in the first three quarters of 2021.

  4. Bank of England Recommends Disclosure of Procyclicality

    Firms will now need to satisfy climate-related eligibility criteria for their bonds to be purchased.

  5. Deutsche Borse-LSE Merger in Focus

    FMX combines Fenics UST and FMX US Futures on the same platform.