Chicago-based broker dealer Citadel Securities will begin trading US government bonds on electronic venue Tradeweb.

The move comes as non-banks, such as Citadel Securities, continue to extend their reach into Treasury trading while banks continue to pull back as new regulations increase the cost of trading.

Citadel Securities already trades derivatives such as interest rate swaps and credit default swaps on Tradeweb. 

However, the firm is going head-to-head with traditional bank dealers operating in the US bond market.

Up until now Citadel Securities' US Treasury activities took place via Bloomberg’s trading venue. 

Bloomberg and Tradeweb dominate e-trading of US Treasuries between investors and dealers.

About $500 billion of Treasuries trade each day, according to the Securities Industry and Financial Markets Association.

“Citadel Securities is an exciting addition to the Tradeweb US Treasury marketplace, helping enhance and increase access to liquidity for institutional investors,” said Billy Hult, president of Tradeweb Markets.

Paul Hamill, global head of fixed income, currencies and commodities at Citadel Securities, added: "Joining the Tradeweb Treasury platform is a natural strategic development for our business.

"We continue to expand our fixed income client franchise, most recently adding off-the-run Treasuries, and remain committed to providing our clients with excellent service and fully firm liquidity across the curve."