BrokerTec
| BrokerTec | |
| Founded | 1999 (as EBS BrokerTec) |
|---|---|
| Headquarters | New York |
| Products | Trading platform for fixed income and FX markets |
| Website | www.cmegroup.com |
BrokerTec is now part of CME Group. It was previously part of NEX Group, which was acquired by CME Group in 2018.[1] CME Group finished migrating the BrokerTec platform to CME Globex in February of 2021.[2]
BrokerTec was previously known as EBS BrokerTec, but the name was changed to NEX Markets after ICAP sold off its voice broking unit to Tullett Prebon in 2016 and renamed itself NEX Group. EBS BrokerTec was ICAP's electronic foreign exchange (FX) and fixed income business serving customers from more than 50 countries. When CME Group acquired NEX Markets, they changed the name back to BrokerTec.
The BrokerTec platform facilitates electronically traded US and European fixed income contracts including US Treasuries, European Government Bonds and European Repo. It is one of the largest FX markets for spot FX, non-deliverable forwards and precious metals.[3]
History[edit]
EBS was founded in 1990 by a 13-member bank consortium that included currency dealers UBS, Citigroup, HSBC and JP Morgan Chase. It was sold to ICAP in 2006, in a deal valued as high as $825 million.[4]
ICAP acquired BrokerTec, a fixed income electronic trading platform, in May 2003, and in 2014 combined it with EBS, its FX trading platform, to form EBS BrokerTec Markets.[5] The BrokerTec CLOB business was called BrokerTec Market. In August 2015 Dan Cleaves and Darryl Hooker were appointed to co-head EBS BrokerTec Markets.[6]
The original founders of BrokerTec were seven of the world’s eight biggest fixed-income dealers: Citigroup, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley. BrokerTec launched its commercial operations in June 2000 and over the years it expanded its product base to offer trading in more than 20 fixed income products, both cash and repo.
In May 2003, BrokerTec was acquired by ICAP Plc. In September 2003, BrokerTec and ICAP launched the first of its combined voice and electronic liquidity pools offering comprehensive fixed income interdealer brokerage.[7]
In January of 2017, BrokerTec Europe agreed to acquire a controlling majority stake in e-MID SIM SpA “e-MID”, the first Italian electronic central limit order book platform for interbank deposits and overnight indexed swaps.[8]
In September 2019, CME Group launched its next generation EBS system called the EBS Direct Platform. The new technology is faster, with processing times under 50 microseconds, improved execution certainty and fill ratios. EBS customers were migrated onto the new platform over an 18 month period.[9]
On March 24, 2021, BrokerTec launched a benchmark spread trading tool named the Relative Value (RV) Curve for cash US treasuries that allows participants to trade spreads across the yield curve.[10]
On May 18, 2023, BrokerTec announced an expansion to its collaboration with LCH RepoClear to provide an efficient route for clients to clear Euro-denominated securities with LCH through BrokerTec Quote, the dealer-to-client Request for Quote (RFQ) Repo trading solution. The expansion will allow clients of BrokerTec Quote to clear trades in Euro-denominated securities transactions with LCH RepoClear via Sponsored Clearing.[11]
Surveillance[edit]
NEX Group chose Nasdaq's Smarts market surveillance technology to provide the technology to monitor its FX and fixed income trading venue EBS BrokerTec for fraud and market abuse.[12]
Products and Services[edit]
EBS
- EBS Market, a platform for anonymous trading of spot FX, non-deliverable forwards, and precious metals.
- EBS Direct, a platform for liquidity providers to stream tailored prices directly to customers with which they have pre-established relationships.
BrokerTec
Anonymous electronic matching platform for the fixed income markets, including:
- US Treasuries
- US Repo
- European Government Bonds
- European Repo
BrokerTec facilitates both API and manual trading for institutions, banks and non-bank professional trading organizations.[13]
Key People[edit]
- John Edwards, Global Head
References[edit]
- ↑ CME GROUP ACQUIRES NEX. CME Group.
- ↑ CME Group Completes Migration of BrokerTec Trading Platform to CME Globex. CME Group.
- ↑ EBS at a glance. NEX.
- ↑ ICAP Agrees to Buy Electronic Currency Broker EBS. Bloomberg.
- ↑ ICAP to combine EBS and BrokerTec business. ICAP.
- ↑ TRADERS ON THE MOVE: EBS Forms Exec Team, RJO Hires FX Head. Traders Magazine.
- ↑ Our History. BrokerTec.
- ↑ BrokerTec Europe to acquire e-MID SIM SpA. Finextra.
- ↑ EBS Launches Next Generation EBS Direct Platform. CME Group.
- ↑ BrokerTec launches US treasury benchmark spread trading solution. The Trade News.
- ↑ BrokerTec Collaborates with LCH RepoClear SA to Integrate Clearing of Euro Denominated Securities for RFQ Trading Solution. CME Group via PR Newswire.
- ↑ Nasdaq to help NEX spot fraud and market abuse. Financial News.
- ↑ BrokerTec Market. BrokerTec.