Direct Match's mission is to create a fair and transparent trading venue for US Treasuries, leveling the playing-field in terms of access to liquidity and cost of execution. By allowing all participants to transact on a centralized platform, Direct Match supports greater price discovery and improvements in execution experience.
Direct Match offers the first true all-to-all anonymous central limit order book (CLOB) in the US Treasury market. As the electronic trading landscape continues to evolve, Direct Match is dedicated to providing the latest in trading technology with seamless workflow integration.
Our goal is to provide existing, proven execution tools and protocols to all market participants, allowing users to own and manage their execution as they see fit. This includes the ability to work orders, to have direct market access, to build or employ execution logic/algorithms, and finally to access a transparent source of market data as means to perform Transaction Cost Analysis (TCA). Direct Match was founded by Jim Greco, former Getco trader/developer.
Continuous. Order-driven. Anonymous.
Direct Match will offer continuous trading in a central limit order book for US Treasury notes and bonds. This is different from the "request-for-quote" method of trading currently available to institutional investors. Unlike existing trading networks, which force buy-side institutions to disclose their trading intentions prior to execution, Direct Match will enable all participants to transact anonymously. This will create a fair playing field for all participants.
Low fee. Narrower bid-offer.
When measuring execution, fees matter. Participants in the US Treasury market pay two kinds of fees: brokerage and bid-offer spread. Brokerage fees are disclosed commissions that can be easily tracked and compared. Bid-offer spreads are based on market conditions and depend on the trading venue. The goal of Direct Match is to deliver savings in both catagories, giving investors value that can compound into the future.
High quality. Deep. Consistent.
Direct Match is independently owned and operated. Liquidity is carefully monitored to ensure participant trading behavior is in line with the mission of the company, which is to provide a fair and investor-friendly market. Our goal is to create a diverse pool of liquidity with tighter increments in an effort to improve electronic execution.
||Traditional RFQ Model||Central Limit Order Book
|Pricing competition||1-5 dealers compete||All participants compete|
|Information leakage||Identity, size, direction disclosed||Anonymous|
|Transparency||Indicative composite only||Full market depth, printed trades|
|Execution||Manual||Automated tools available|
|Delay||Wait for quote, potential last look||Instantaneous|