The site ( www.bondhub.com ) is designed to offer smaller money managers and institutions access to a cost-effective bond trading alternative. The service will go live February 26 for 20 to 25 of its participants, according to Dow Jones.
Initially, live trading online will focus on specified pools of mortgage-backed securities, municipal bonds and corporate bonds.
System participants can post offers, bids and inquiries anonymously on the site, which also provides e-mail alerts and control features on trading activity.
User fees are charged when transactions occur. Participants can access information on bonds for free.
The company says it has been refining its operations through traditional voice trading activity since October, with several hundred bonds traded via BondHub on an average day. BondHub has now established trading relationships with 48 firms.