A representative for CME Group (CME.O) indicated that the company has initiated fresh tab plans to apply for clearing U.S. Treasuries, which is a market worth $26 trillion. This information was provided by the spokesperson.
According to a report that was published earlier on Tuesday by the Financial Times, CME Group would be the first exchange company to explicitly reveal its plans to enter the world's largest bond market.
This would be a significant step forward for the company. In the report, it was stated that CME Group would submit an application to clear United States Treasuries this year.
Chris Edmonds, who is the head of fixed income and data services at Intercontinental Exchange (ICE.N), which is a competitor of this company, gave an interview to Reuters in which he claimed that his company is also interested in providing Treasury clearing services.
An additional statement that he made was that Intercontinental Exchange "will find a way to serve the market."
Clearing and settlement services for exchange-traded contracts and over-the-counter derivatives transactions are provided by CME Clearing, which is managed by the Commodity Modernization Exchange (CME).
CME Clearing is responsible for delivering these services. Specifically, CME Clearing is the provider of these services. Furthermore, the exchange operator provides global benchmark products that encompass the majority of asset classes.
These products are available to global investors. Transactions involving futures and options are examples of the types of products that fall under this category.
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