June 27 (Reuters) - Startup electronic bond-trading platform operator OpenDoor Securities said on Tuesday it raised $10 million in a private investment round and will use the funds to improve connectivity to its customers and expand its client base.
The latest capital raise for OpenDoor, which is majority- owned by women, follows a separate $10 million round in July 2016 and a $2 million initial seed round in December 2015.
OpenDoor launched on April 25 and currently holds two anonymous auctions a day in “off-the-run” U.S. Treasury bonds, those issued before the most recent offering with the same maturity, and with inflation-protected securities, or TIPS.
Trading in off-the-runs has declined in recent years as post-financial crisis regulations requiring banks to hold more capital led to a decline in market making for the securities, which comprise 98 percent of the $13.8 trillion U.S. Treasury market but less than one-third of average daily volumes.
OpenDoor’s auctions bring together buyers and sellers including central banks, pension funds, sovereign wealth funds, primary dealers, asset managers, hedge funds and trading firms. (Reporting by John McCrank in New York; Editing by Phil Berlowitz)