BrokerTec to Launch Dealer-to-Client Request for Quote Solution for Repo Market

BrokerTec, a subsidiary of CME Group, will soon be launched a new dealer-to-client Request for Quote (RFQ) trading solution for the European Repo market, going by the name of BrokerTec Quote, subject to regulatory approval. Clients will also gain access to BrokerTec Analytics, which provides insight into individual trade performance and historical data.

The leading provider of electronic trading platforms and technology services in fixed income markets will offer BrokerTec Quote to provide market participants with a new, enhanced RFQ capability, providing a more intuitive and efficient means of trading, including more informed trading decisions and significant enhancements to negotiation and execution.

To be made available for the trading of European Sovereign Debt, UK Gilts along with Supranational and Agencies in the EU27, BrokerTec Quote will later include US Treasuries and several major sovereign bond markets including Australian and Japanese Government Bonds.

John Edwards, Managing Director of BrokerTec Europe, commented:

“The development of RFQ functionality and launch of the new BrokerTec Quote segment is the next extension to our existing, market-leading dealer-to-dealer Repo platform. This new service will leverage the existing regulated platforms in the UK and the Netherlands for the EU27 and offers meaningful opportunities for the dealer community on BrokerTec by delivering significant efficiencies and enhanced execution services in the dealer-to-client space via an RFQ protocol.”

BrokerTec belongs to CME Group ever since the acquisition of NEX Group for £3.9 billion ($4.96 billion). The deal included sub-brands such as BrokerTec, EBS, Traiana and TriOptima and the merger has enabled investors to access cash and futures trading and over-the-counter services through one provider for the first time. CME Group expects the acquisition to produce run-rate cost synergies of $200 million annually by the end of 2021.

In early November 2018, Eurex Clearing made the news for working with BrokerTec Europe Limited in order to launch a new clearing solution for the European repo market, which will be live by the end of this year. Via the BrokerTec platform, market participants choosing to clear repo transactions will begin to consolidate their European repo and corresponding OTC and listed derivatives business under the single risk framework of Eurex Clearing.