CME Group unveiled Treasury Link, a single electronic transaction that combines buying a US Treasury bond with shorting the matching future, removing the multi‑step execution risk that currently defines the basis trade. The product runs on Broker Tec, CME’s cash‑Treasury platform, and is aimed at smaller, risk‑averse investors who lack extensive broker relationships.

The basis trade has swollen to $830bn as of September 2025, double its 2020 peak, and relies on leverage often exceeding 100×. Regulators — including the Federal Reserve, SEC and FSOC — have warned that a rapid unwind, such as the March 2020 episode and last year’s tariff shock that moved the 10‑year yield by 0.6 percentage points in a week, can destabilize the Treasury market.

CME argues that Treasury Link will narrow the price gap between cash bonds and futures, improve transparency, and let traders re‑enter the trade quickly when spreads widen, potentially dampening contagion from forced deleveraging. Matt Gierke, global head of Broker Tec, said the electronification adds integrity to a market that has grown sharply in size.

Broker Tec has been losing share to rivals Dealerweb and FMX, partly due to higher per‑trade costs. CME has not disclosed pricing for the new instrument but is offering smaller trading increments on its Chicago exchange, a feature mirrored in Treasury Link.