WHAT IS OPENDOOR?
Designed by industry veterans in an effort to heal a bifurcated marketplace, OpenDoor is an innovative trading platform that provides a unique solution for OFTRs and TIPS that meets the needs of all market participants.
WHAT ARE THE KEY BENEFITS?
OpenDoor is a great diversifier to your trading execution. The platform protocols are designed to improve your transaction and information costs, level the playing field and respond to regulatory best execution requirements.
Unlike RFQ, RFS and Central Limit Order Book models, OpenDoor directly connects buyers and sellers, providing open and equal access with no price discrimination.
WHO REGULATES OPENDOOR?
OpenDoor Securities LLC is regulated by the Financial Industry Regulatory Authority (FINRA).
WHO SHOULD JOIN?
Open Door’s diversified pool of liquidity consists of Institutional Investors, including asset managers. pension funds, insurance companies, sovereign wealth funds, hedge funds, primary dealers, and broker dealers, all of whom have the ability to trade on our platform. Some Broker Dealers on the platform, in addition to being a participant on the platform may also provide clearing services for the benefit of institutional investors. Clearing Dealers have agreed not to use client data except for the purpose of providing settlement services to their respective participants.
HOW MUCH DOES IT COST?
Joining the OpenDoor platform is free; there are no monthly access or subscription fees associated. Participants pay a volume-based transaction fee only, which is included in the clearing price of the transactions in OFTRs and TIPS. OpenDoor’s participants experience significant savings by transacting at or near mid-market price.
The minimum order size for Treasuries is $10 million and $5 million for TIPS.
HOW IS THE PLATFORM DEPLOYED?
Participants log into the OpenDoor platform through a secure web-based portal or via OpenFin’s secure desktop container.
ARE ORDERS EVER ROUTED TO THIRD-PARTY TRADING VENUES?
No. All orders and transactions are matched with other participants directly on the OpenDoor platform.
IS OPENDOOR THE COUNTERPARTY TO THE TRADE?
No. OpenDoor is a trading platform that matches buyers and sellers only.
DO YOU PROVIDE FULL STP?
Yes. As soon as an order is fully executed, participants who have a matched trade receive an electronic notice of execution (in the format of their choice) that easily populates their risk and settlement systems. OpenDoor offers connectivity solutions that can be customized and configured to suit your compliance needs, including but not limited to, STP via FIX, Drop Copy via FIX, Trade blotter via the GUI and TSOX integration. Customized EOD reports are available upon request.
WHO CREATED OPENDOOR?
A core group of successful industry executives came together to leverage their experience in investment banking, trading, portfolio management and technology to produce a private sector solution to a public sector problem.
WHO OWNS OPENDOOR?
Owned by the employees of OpenDoor and non-market participant investors. OpenDoor is a registered Women-owned Business.
HOW DOES OPENDOOR MANAGE CREDIT?
- Credit limits can be assigned on a 10Y equivalent basis by your clearing dealer.
- Notional amounts traded are converted to a 10Y equivalent level using system assigned ratios. Credit is checked at the time of match – not at the time of order entry – allowing the user to maximize usage.
- Any match that results in a 10Y equivalent credit used exceeding the assigned credit limit will be rejected. When the credit used reaches 75% of the assigned limit, the user will receive a pop-up and should contact MarketSupport@opendoorllc.com to facilitate an extension.
WHAT PRICING INCREMENTS ARE USED ON OPENDOOR?
For PRICE based orders (OUTRIGHT LIMIT), Increments vary by sector:
- For Nominals <= 5 years to maturity. 1/16 of 1/32 is supported
- For Nominals > 5 years to maturity, 1/8 of 1/32 is supported
- For TIPS <= 5 years to maturity, 1/8 of 1/32 is supported
- For TIPS > 5 years to maturity, ¼ of 1/32 is supported
HOW DOES OPENDOOR CALCULATE THE REFERENCE LEVEL?
OpenDoor provides Reference Prices (Indicative Mid-levels) for all 350+ UST BMK, OFTR, and TIPS throughout the US Trading session. Using an OpenDoor proprietary algorithm, OpenDoor aggregates and curates a combination of Dealer feeds, third-party feeds and additional, non-aggregated feeds to derive these prices.
HOW CAN I ACCESS OPENDOOR DATA?
Users can access OpenDoor Data via the GUI, FIX Connectivity or Excel download.
WHAT ARE THE HOURS OF OPERATION?