Bond trading platform Brokertec has won CFTC approval to operate an online futures exchange and begin trading contracts on US government securities.
Brokertec, set up by a coalition of investment banks to provide electronic trading in fixed income securities, says it will begin trading futures contracts in the third quarter. The move puts it in the sights of the Chicago Board of Trade, the current market leader in trading US Treasury derivatives.
Hal Hinkle, BrokerTec Global's CEO, says the futures platform will provide the same straight-through processing that the cash platform does and will aim to promote common clearing of cash and listed futures products.
BrokerTec began its commercial operations in June of 2000 by trading US Treasury bills, notes, bonds, strips, agency benchmark and euro sovereign debt. In its first 11 months, BrokerTec says it has traded over $5.8 trillion in fixed income product globally.