A relatively new player in the electronic Alternative Trading Space is looking to level the playing field for high-yield (HY) investors.
OpenBondX has introduced a new trading protocol that curtails the possibility of trading parties issuing quotes without any expectations of trade execution – known as fishing – and prevents gaming of the system.
With hidden limit pricing capabilities, anonymous trading, and protection against price and information leakage, OpenBondX is the only platform engineered to improve electronic HY bond trading for both buy- and sellside participants, said CEO Alistair Brown.
The companys Request for Firm Quote (RFFQ) protocol will also hide prices from all sides, which provides added protection and ensures anonymity to protect the identify of all participants.
Separately, OpenBondX is rolling out a new rebate/fee structure for fixed-income trading. Those initiating order flow will be incentivized with rebates that are built into the trades settlement.
The following rebates/fees will be offered:
Order initiators of an RFFQ will be rebated two basis points of the notional value per trade (or $200 per million).
Order responders will be charged only 2.5 basis points of the notional value per trade (or $250 per million).
Post trade, the rebate or fee is applied to the net settlement value, i.e., the initiators cost is adjusted by the rebate of $200 per million dollars and the responders cost is adjusted by the fee of $250 per million dollars.
No additional ticket, transactional or monthly terminal access fees are incurred.
As OpenBondX is an all-to-all platform (open to both buy- and sell-side traders), any subscriber can earn rebates by initiating an RFFQ. And access to the platform is free, according to compnay claims.
