CHICAGO--(BUSINESS WIRE)--The Small Exchange, a futures exchange offering smaller, simpler products aimed toward retail customers, has launched Small Treasury Yield (S10Y) futures - the first product to afford customers the ability to trade treasury futures in yield not price.
S10Y follows the 10-Year U.S. Treasury Yield, the most quoted interest rate in the US. Small Treasury Yield futures simplify variables in an otherwise complex asset class down to a single, succinct interest rate so traders can skip the calculations that translate yield to price. S10Y gives easy access to trade interest rates at their lowest levels in the history of Treasuries, creating a simple trade on the return to normal or fall to negative, where many global rates already are.
“We believe the Small 10YR US Treasury Yield is a true differentiator in the futures space, and nothing like this is available for traders in the equity or ETF world,” said Don Roberts, the Small Exchange President and CEO. “Our whole mission is to continue creating new products for investors that enable more opportunities within the futures marketplace. We wouldn’t be able to do this without market participants like Interactive Brokers and MarketAxess.”
Interactive Brokers (Nasdaq: IBKR), an automated global electronic broker and a minority investor to the Small Exchange, is now offering S10Y to its customer base.
“Interactive Brokers focuses on providing our clients with superior pricing, advanced technology and breadth of product around the globe,” said Interactive Brokers CEO Milan Galik. “We serve more than a million clients worldwide and strive to provide them with innovative products. We look forward to offering them access to the Small Exchange’s new interest rate future.”
The Small Treasury Yield is based on real-time U.S. Treasury data provided by MarketAxess, the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets.
“As a leading fixed income trading marketplace and offering in-depth market data, our focus aligns with Small Exchange’s vision to develop solutions that drive liquidity in the U.S. Treasury market,” said Kat Tatochenko, Global Head of Data, MarketAxess. “By enabling traders to uncover new trading opportunities through robust data, we are putting traders in the driver’s seat and reshaping the bond markets.”
As of December 1, 2020, the Small Exchange has 21 partners including some of the world’s largest trading firms and market makers. It has launched 5 products including a suite of Equity indices, Global Dollar Index, and Precious Metals Index. To learn more about the Small Exchange’s offering, visit www.thesmallexchange.com.
About Small Exchange: Based in Chicago, The Small Exchange - backed by award-winning industry innovators and powered by a proprietary trade matching engine - is a registered Designated Contract Market (DCM) with the Commodity Futures Trading Commission (CFTC). The Small Exchange’s mission is to become the world’s largest customer-centric futures exchange, bringing products that bridge the product gap for investors of all sizes by providing futures products that are smaller, capital efficient, simple to use, and easy to understand for all participants. The company will facilitate the trading of exchange-created proprietary products for all types of market participants including, but not limited to market-makers/liquidity providers, Introducing Brokers (IBs), Futures Commission Merchants (FCMs), proprietary trading firms and hedge funds, all with a primary focus on the public retail customer. Please visit www.thesmallexchange.com for more information.
About Interactive Brokers Group, Inc.: Interactive Brokers Group provides automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. The platform services individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.
About MarketAxess: MarketAxess operates a leading, institutional electronic trading platform delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. A global network of over 1,700 firms, including the world’s leading asset managers and institutional broker-dealers, leverages MarketAxess’ patented trading technology to efficiently trade bonds. MarketAxess’ award-winning Open Trading™ marketplace is regarded as the preferred all-to-all trading solution in the global credit markets, creating a unique liquidity pool for a broad range of credit market participants. Drawing on its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services.
MarketAxess is headquartered in New York and has offices in London, Amsterdam, Boston, Chicago, Los Angeles, Miami, San Francisco, São Paulo, Hong Kong and Singapore. For more information, please visit www.marketaxess.com.