OpenDoor Volumes Increase After Platform Update
OpenDoor Securities, the first all-to-all marketplace for illiquid US Treasuries, has seen a 436% increase in average daily order volume since the introduction of a slew of new functionality in April 2018, while matched volumes on its platform have risen 403% in the same time period.
Since the close of 2017, OpenDoor’s daily order volumes have tripled. The sharp growth in activity on OpenDoor comes at a time of rising rates in the US government bond markets, while liquidity concerns remain for many investors, especially in off-the-run securities.
Three months ago, OpenDoor launched its 2.0 platform, a more user-friendly interface that offers greater transparency and complete control over the issues, orders and trades customers wish to see.
“We’re delighted with the response from clients to both improved levels of liquidity and an array of new enhancements. These are essential steps towards solving ongoing structural erosion of the marketplace,” said Susan Estes, CEO and President of OpenDoor. “Since 2008, the Treasury market has grown tenfold, while overall trading activity is at similar levels to a decade ago.”
OpenDoor has received several industry accolades since the start of the year, including Best Sell-Side Newcomer at the Sell-Side Technology Awards, Best New Trading Platform at the Markets Choice Awards, and Best Crossing Network Provider at the Waters Rankings. CEO, President and Co-Founder Susan Estes was also featured on Institutional Investor’s Trading Tech 40 list for the second consecutive year.
To support its growth, OpenDoor has received more than $32 million of funding, which has been invested in product development, sales and marketing. Recent key hires include Lauren McFall Gardner, Managing Director and Co-Head of Sales, who joined from trueEX, the derivatives trading platform; and Marie Patton, CAO and Co-Head of Sales, who previously spent nearly 40 years at ICAP. Brian Meehan, a co-founder, recently left the firm after spending five years helping to create the initial business structure.
OpenDoor is a certified woman-owned business enterprise and the first bond trading platform majority owned and operated by women.
Less liquidity makes TCA a critical tool.
Data is harder to come by in the less liquid, off-the-run Treasury securities.
Market shifts away from submission-based pricing, toward independently validated reference prices.
Off-the-run securities are less liquid despite comprising the bulk of the market.
Aim is to provide accurate, independently validated market data.