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PHLX Picks BondDesk Prices and ATS for Executing in Treasuries

Nasdaq OMX partnered with BondDesk for providing real-time pricing to PHLX's newly launched options on U.S. Treasuries, and member firms will execute in the underlying bonds on the BondDesk ATS.

Nasdaq OMX has chosen BondDesk to provide real-time pricing data to support the recently launched options on U.S. Treasuries trading on the Nasdaq OMX PHLX exchange.

BondDesk has licensed the real-time Treasury pricing data feed to PHLX for use by its member firms. PHLX member firms trading the options will also use the Bond Desk ATS for trading the underlying Treasury securities.

“Bond Desk was their logical partner for us given that their leading position in the retail Treasury market,” stated Tom Wittman, head of U.S. Options and Futures at Nasdaq OMX, in today’s announcement. “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,” stated Wittman in the release.

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. According to PHLX, the new options are flexible and cost-efficient investment vehicles that can 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.

“It’s great to have a firm like Nasdaq recognize our prices as a leading benchmark for valuing Treasury bonds,” commented John Bagley, President of BondDesk Trading.

BondDesk ATS is the largest odd-lot fixed income-trading venue in the U.S. “Today the ATS has over $40 billion in live Treasury liquidity and handles trades ranging from $10,000 to as large as $20 million,” noted Bagley.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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