CME Group announced it will launch a second BrokerTec central limit order book (CLOB) for cash U.S. Treasuries in Q3 2025. This new CLOB will be co-located in Chicago, adjacent to CME Group's deeply liquid U.S. Treasury futures and options markets. This industry-first initiative aims to streamline trading between cash and derivatives markets.
The new venue is designed to greatly enhance the client experience for cash versus futures strategies, addressing the complexities of deploying relative value strategies between New York and Chicago markets. It will allow for smaller notional sizes and tighter price increments of 1/16th of a 32nd, enabling smaller firms to participate in spread trading. This is expected to broaden and deepen the liquidity pool and increase matching opportunities.
BrokerTec's existing New York-based CLOB will remain its primary venue for price discovery in cash U.S. Treasuries, with February 2025 average daily notional volume (ADNV) of $113 billion. The Chicago CLOB will complement this offering by focusing on relative value strategies. Clients can access the new venue via existing CME Group connectivity, with testing beginning on April 27, 2025.
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