OpenYield Launches Fully Automated, Equity-Like Marketplace to Lead Bond Trading Into the Next Era
OpenYield’s unique liquidity, low cost and flexible technology makes it easy for broker-dealers, advisors and asset managers to offer attractive bond investing solutions to retail clients
NEW YORK, March 28, 2024 /PRNewswire/ — OpenYield Trading LLC, a FINRA-registered broker-dealer and SEC-registered alternative trading system (ATS), today printed its first trade, marking the launch of its platform. OpenYield modernizes fixed-income investing and empowers broker-dealers, advisors and asset managers to easily enter the bond market or enhance their existing offerings. With unique liquidity, no minimums, flexible APIs and a powerful technology stack that delivers data and analytics, OpenYield provides a low-cost, equity-like marketplace for bond trading.
To date, OpenYield has onboarded prominent algo-enabled market makers such as Flow Traders and TD Securities Automated Trading. The platform has onboarded Apex Clearing, which supports 100+ brokerages with a combined AUC exceeding $100 billion, and is poised to connect a wide range of subscribers from fintechs to established asset managers.
OpenYield addresses a range of challenges in fixed income investing that have made it difficult for smaller investors to participate in the asset class. Bond marketplaces traditionally post indicative quotes requiring confirmation, creating uncertainty for investors and operational complexity for execution. The emergence of pricing algorithms have eliminated the need for humans to confirm prices, similar to equity markets. Additionally, OpenYield simplifies bond selection by curating liquid bonds across corporates, municipals and Treasurys.
OpenYield enables subscribers to launch or enhance their bond trading solutions seamlessly with its open technology and is focused on minimizing costs for small tickets. Familiar APIs streamline onboarding, while data services – including price history, yields and cash flows – can power an enhanced brokerage solution.
Key features include:
- Bundled algo-driven liquidity on a single venue
- 100% firm prices, low-latency instant execution
- Cutting-edge architecture designed for automated trading
- Equity-like protocol: no minimums, limit and market orders
- Unique focus on odd lot economics
- All to all with tiered liquidity pools
- Ability to optimize fees through ticket aggregation
Jonathan Birnbaum, Founder & CEO of OpenYield, explained, “The bond market is primed for its next chapter. The rise of interest rates has catalyzed the demand side for fixed income, while the rise of electronic trading and pricing algos has transformed the supply side liquidity. Meanwhile, the experience of interacting with the bond market for investors and advisors hasn’t changed, leaving much to be desired. Birnbaum added, “We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”
Marty Mannion, Co-Head of TD Securities Automated Trading, said, “Greater use of technology and automated trading protocols are transforming the execution process in fixed income markets. We are excited to be working with OpenYield to help deliver actionable liquidity to their innovative platform, with the goal of creating a premier execution experience for investors.”
Jason Wallach, VP & Head of Capital Markets at Apex Clearing Corporation said, “Our goal is simple: provide cutting-edge technology enabling fixed-income products to be traded with the same agility as equities. We’re thrilled to support OpenYield as they pave the way for broker-dealers, advisers, and beyond to enter the bond trading arena seamlessly. We’re not just participating in the next chapter of capital markets; we’re actively shaping its future.”
Founded in 2023, OpenYield is led by a group of longtime fintech, capital markets and hedge fund practitioners who have successfully built and scaled retail and institutional fixed-income investing platforms for leading global buy-side and sell-side firms. OpenYield has raised funds led by Fin Capital in 2023 and has additional backing from TD Bank. In Q4 2023, OpenYield became a broker dealer registered with the SEC, FINRA and MSRB.
For more information and regular updates on OpenYield, please visit openyld.com
About OpenYield
OpenYield is the bond market powering retail, making it easy for broker-dealers, advisors and asset managers to offer attractive bond investing solutions to their clients. With no minimums, 100% firm quotes and an aggressive pricing schedule tailored to small orders, OpenYield is transforming the bond trading experience. For more information on OpenYield, visit www.openyld.com.
