Cboe Global Markets to introduce US Treasuries Trading Platform

Cboe Global Markets, Inc. revealed plans to launch a new dealer-to-dealer electronic trading platform for On-The-Run US Treasuries. The Cboe Fixed Income platform will be Cboe’s first cash US Fixed Income product offering. It will further diversify and expand its products, services and technology offerings into new markets around the globe. Cboe detailed that the platform is planned to launch in the second quarter of 2022.

Cboe Fixed Income is built to enable dealers in US Treasuries to efficiently source liquidity and trade in size, while reducing market impact.

Jonathan Weinberg, Senior Vice President and Head of FX and U.S. Treasuries at Cboe Global Markets, said:

We are excited to bring the best of what we do in the global FX market to the U.S. Treasuries space. 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 Global Markets

Cboe Fixed Income will bring the company’s Full Amount technology together with its liquidity curation and analytics capabilities to further improve trading in US Treasuries.

The Full Amount matching protocol allows liquidity consumers 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, which will reduce ticket costs.

Additionally, Cboe Fixed Income will help participants effectively manage liquidity segmentation through providing them with customized liquidity curation. The company expects to actively engage with customers to analyze flows, provide insights to make better-informed trading decisions.

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, added:

Edward T. Tilly

Edward T. Tilly

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. 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 detailed that the platform is in the process of registering SEC a government securities broker-dealer and becoming a member firm of the FINRA.

Cboe recently announced Nanos, its new options contract designed to simplify options trading for retail traders, allowing them to start small and grow with their trading confidence.

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