TradeStation Adds US 20-Year Treasury Bond Futures

TradeStation announced it has added 20-year US treasury bond futures from CME on its trading platform.

According to CME that recently launched the product, 'the 20-Year futures contract will physically deliver an original issue 20-year bond with no less than 19 years and 2 months remaining term to maturity and no more than 20 years remaining term to maturity from the first day of the futures delivery month'.

In addition, the futures will include on-the-run, old, double-old and triple-old securities. TradeStation seized the opportunity to add the new futures on its platform as it may appeal to traders during the current risk aversion mode.

John Bartleman, the President and Chief Executive Officer of TradeStation said. "We're excited to be offering a new futures product while continuing our longstanding relationship with CME Group.

"We're proud to add this new futures contract to meet the needs of our futures customers."

Agha Mirza, the Global Head of Rates and OTC Products at CME Group expressed CME's content with TradeStation: "We're pleased TradeStation is supporting the launch of our new 20-Year U.S. Treasury Bond futures.

"This new contract will offer greater efficiency and precision in managing exposure at the 20-year maturity point on the U.S. Treasury curve. We look forward to continuing our strong relationship with TradeStation to provide clients, including the broader fixed-income trading community, with additional ways to access our deep, liquid U.S. Treasury risk management products."

TradeStation Strategic Move

During risk events, investors tend to exit the stock market and flock to government bonds. Tradeweb released the trading volumes for government bonds for February 2022.

The uptick in government bonds began as soon as it was reported that Russia had begun its invasion of Ukraine.

US government bond Average Daily Volume (ADV) increased by +30.4% y/y to $153.8 billion. European government bond ADV spiked by +24.9% to $42 billion.

TradeStation strategic decision to add one 20-year US bond futures is aligned with the chaos in Ukraine, which is reflected in government bonds trading volumes.

The volatility in government bonds may persist for some time.