Deutsche Bank has joined bond trading network BondBook as a founding equity partner. Initially conceived by Wall Street investment banks for trading in US corporate and municipal bonds, the arrival of the German banking powerhouse at BondBook underscores the European ambitions of the venture partners.
Larry Buchalter and Jim Pellicane who serve as co-chief executive officers of BondBook, say the launch of the venture in the US will "serve as a model for strengthening fixed income markets in other asset classes and geographies".
Tom Gahan, head of global credit products of Deutsche Bank Securities, says: "We look forward to working closely with our BondBook partners in launching BondBook in the US and as well as extending its focus to the European fixed income markets."
Scheduled to begin operation by year-end, the BondBook electronic trading platform will show live bids and offers and allow bond dealers and investors to post quotes and execute trades on an anonymous basis. BondBook intends to act as agent in connection with transactions effected through the system, effectively underwriting trades in the event of counterparty failures.
BondBook has filed for registration with the Securities and Exchange Commission (SEC) as a broker-dealer and has applied for membership in the National Association of Securities Dealers (NASD). The founding partners include Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter, and Salomon Smith Barney.