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BrokerTec integrates relative value curve spread trading with Broadway Technology

  • March 24, 2022

Fixed income and FX trading platform, BrokerTec, has partnered with Broadway Technology to make its relative value (RV) curve spread trading functionality available on Broadway’s Toc platform.

The integration provides mutual clients with access to the full RV Curve product suite to support execution efficiencies by merging liquidity from BrokerTec’s central limit order book with a single-threaded matching engine to reduce legging risk, provide more inside liquidity, and increase matching opportunities when trading benchmark spreads.

“We’re pleased to collaborate with Broadway to bolster liquidity and grow the ecosystem of clients participating in US Treasury spread trading on BrokerTec,” says Sean Hodgson, executive director, BrokerTec Products. “Clients increasingly are turning to RV Curve to efficiently manage their risk along the curve with 42 clients trading over US$125 billion notional volume to date.”

Bruce Boytim, COO of Broadway, says, “As spread trading continues to be a growing priority for our clients, we’re proud to be able to offer them access to BrokerTec RV Curve and give them a more efficient way to trade the US Treasury curve. By partnering closely with BrokerTec to support its complete offering and introduce this new functionality to Broadway clients, we can bring the tangible benefits of RV Curve to a broader portion of the trading community.”

BrokerTec launched RV Curve in 2021 to help market participants to trade pre-defined cash US Treasury benchmark spreads as a yield differential and in a single order for the first time. The tool offers 21 spreads, providing a view of the relationships between 2-, 3-, 5-, 7- and 10-year Treasury notes and 20- and 30-year Treasury bonds. By allowing trades to be executed in a single order, clients should be able to trade the yield curve more efficiently and without legging risk or price slippage.

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