BrokerTec

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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]

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.[2]

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.[3]

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.[4] The BrokerTec CLOB business was called BrokerTec Market. In August 2015 Dan Cleaves and Darryl Hooker were appointed to co-head EBS BrokerTec Markets.[5]

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.[6]

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.[7]

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.[8]

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.[9]

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.[10]

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.[11]

Key People[edit]

References[edit]