OpenYield Trading, a FINRA-registered broker-dealer and SEC-registered alternative trading system (ATS), has printed its first trade, marking the launch of its platform. OpenYield aims to modernise fixed-income investing and empower 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.
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 minimising costs for small tickets. Familiar APIs streamline onboarding, while data services – including price history, yields and cash flows – can power an enhanced brokerage solution.
Jonathan Birnbaum, Founder and CEO of OpenYield, said: “The bond market is primed for its next chapter. The rise of interest rates has catalysed 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.
“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.”