BondDesk Group LLC and The NASDAQ OMX Group, Inc. (NDAQ) announced today that BondDesk was chosen by the exchange group to provide the real-time pricing data needed to support the recently launched options on U.S. Treasuries trading on the NASDAQ OMX PHLXSM (PHLX(R)) exchange.
BondDesk has licensed its real-time Treasury pricing data to PHLX for use by its member firms and will provide access to the BondDesk ATS for trading the underlying Treasury securities. The BondDesk ATS is the largest odd-lot fixed income trading venue in the United States.
PHLX recently launched exchange-traded options on U.S. Treasuries, overlaying the most recently issued "on-the-run" 10-year notes and 30-year bonds which allow investors to hedge interest rate risk with more precision. The new options provide flexible, cost-efficient investment vehicles and may be traded by qualified investors in securities brokerage accounts. BondDesk's real-time Treasury pricing data is used to determine the opening and settlement values of the options and support PHLX's market, regulatory and surveillance operations.
"BondDesk was the logical partner for us given their leading position in the retail Treasury market," said Tom Wittman, Head of U.S. Options and Futures at NASDAQ OMX. "The amount of liquidity and trading that takes place on the BondDesk ATS gives us great confidence in the quality of their pricing data which we feel best represents the overall Treasury market."
"It's great to have a firm like NASDAQ recognize our prices as a leading benchmark for valuing Treasury bonds," said John Bagley, President of BondDesk Trading. "The BondDesk ATS can also provide an efficient venue for trading the underlying Treasuries. Today the ATS has over $40 billion in live Treasury liquidity and handles trades ranging from $10,000 to as large as $20 million."