(Reuters) Startup electronic fixed income trading platform OpenDoor Securities said it would hold its first auction on Tuesday, with the aim of improving liquidity in hard-to-trade areas of the $13.8 trillion U.S. Treasury securities market. The platform will offer “all-to-all” trading for off-the-run Treasuries and Treasury Inflation Protected Securities (TIPS), starting with a single auction at 11 a.m. on Tuesday, before ramping up in the near term to four daily auctions.
Liquidity in off-the-run Treasuries, which are Treasury bonds and notes issued before the most recent issue of a particular maturity, has declined as a result of post-financial crisis regulations that force banks to hold more capital and pull back from market making activities.