OpenDoor lands $10m for illiquid US Treasuries marketplace

OpenDoor Securities, an all-to-all marketplace for illiquid US Treasuries, has completed a third $10m investment round.

The company, which didn’t reveal the investors, said the new funds will help to accelerate its rapid business expansion by hiring additional experienced sales and marketing executives and introducing a series of major enhancements to its platform.

OpenDoor provides institutional investors with tools to improve their execution quality in the most illiquid segments of the U.S. Treasury market: Off-the-run Treasuries and TIPS. Its solution claims to enhance the value of the buy-side’s dealer relationships by employing a riskless-principal model.

The company provides “SuperGrid”, a flexible interface that gives traders complete control over the issues, orders and trades they wish to see, selecting from the full set of off-the-runs (OFTRs) and TIPS for each matching session. It also provides ClearView, an enhanced real-time indicative pricing curve which leverages its internal pricing models that track overall curve moves as well as on-the-run premia. Combined with its dealer and 3rd party feeds.  ClearView gives clients a pre-trade insight into the true price drivers across the markets.

Headquartered in Jersey City, New Jersey, OpenDoor has a client base that consists of central banks, pension funds, sovereign wealth funds, primary dealers, asset managers, hedge funds and trading firms.

“OpenDoor is committed to delivering a more transparent marketplace for illiquid Treasury securities,” said Susan Estes, CEO, president and co-founder of OpenDoor. “So while these enhancements take us closer to delivering on this worthy goal, they also make perfect sense for our client base, as evidenced by the rapid growth in the OpenDoor community.”

Eight dealers are trading on OpenDoor’s platform for their own accounts, along with financial institutions representing $7.3 trillion in assets under management, an 84% increase since the platform’s launch in late April 2017. In the nine months since launch, OpenDoor has facilitated over $275bn in orders, with matched trading volume reaching $10 billion, $1 billion in the first week of January 2018 alone.

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