The NEX/CME Merger: A New Day for the Treasury Market?

The acquisition of NEX by CME is a big event in the ongoing evolution of the market for Treasury securities. As the primary dealers fight to hold onto their shrinking portion of the trading volume, and as the Treasury’s issuance volume ramps up, the ability of all the market participants to provide liquidity and efficient trading will test everyone’s stamina and resources. Will the CME end up dominating this market as well as interest rate futures? This Market Note discuss the acquisition and how the combination sets CME/NEX to dominate the treasury/sovereign market.