Instinet, the agency brokerage owned by Reuters, last week began a new form of bond trading on its global electronic trading platform. The method of trading, known as basis trading, is the simultaneous execution of cash and futures.

Although brokers have done basis trading in traditional bond markets, Instinet is among the first to offer it electronically. It will be offered on Instinet for deliverable and non-deliverable bonds in the euro government market, initially going live with the 16 deliverable and a selection of non-deliverable German government bonds. Basis trading in other markets will be added shortly, in response to market demand.