Deals
A Treasuries Maverick Rises From the Dead With Help From Merger
- Direct Match hoped to shake up bonds with new trading platform
- Now merging with OpenBondX, which brings link to vital service
The U.S. Treasury building in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
Direct Match Holdings Inc.’s effort to disrupt U.S. Treasuries trading is back from the dead, thanks to a merger that gives the company access to a key clearinghouse.
The company is combining with OpenBondX LLC, another bond-trading startup, and they’ll share a link into Depository Trust & Clearing Corp.’s clearinghouse through Wedbush Securities Inc., said Direct Match co-founder Jim Greco. Treasury trading systems can’t operate without a connection to that industry utility. What doomed Direct Match in August was the loss of its clearing agreement with State Street Corp.