Clobbered: how ‘toxic’ flows reshaped US Treasury trading
Volumes have dropped by more than a third at BrokerTec. The reasons are complex, the outlook uncertain
By most measures, CME Group’s interest rates business is booming. The Chicago-based exchange operator reported record annual revenue of $5.6 billion in 2023, driven by surging US Treasury futures and options volumes.
But one critical part of CME’s interest rates empire is in a serious slump. Annual average daily volume (ADV) on BrokerTec, the largest interdealer trading venue for US Treasury securities, fell 16% to $106 billion in 2023 and is down 39% from $173 billion in 2018 when CME acquired
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