OpenBook: How It Works

How It Works

OpenBook is an Internet-based platform for auctioning new issue corporate bonds to both individual and institutional investors. Institutional investors participate directly in the online interactive auction. Individuals participate on a non-competitive basis by calling bids in to a customer service representative. OpenBook creates a transparent new issue market, offers all bidders equal access to securities.

Why Participate?

Individual investors seldom get the chance to purchase corporate bonds directly from the issuer. Generally when purchasing bonds, the broker-dealer includes a commission in the overall price of the bond. Because OpenBook auctions are an initial offering of fixed income securities, there is no commission on the trade and there is no markup of the securities to the customer. This makes participating in an OpenBook auction the most inexpensive and direct way to buy bonds for your portfolio.

You must have a WR Hambrecht + Co brokerage account to participate in OpenBook auctions. New brokerage accounts can be opened online.

How to Participate

Individual investors may phone in non-competitive bids at $1000 increments (the face value of a bond) by calling 1-800-673-6476. Individual Investors do not participate in the interactive online auction directly. Individuals who place non-competitive bids will receive bonds at the price and yield determined by the auction.

After the auction is completed, a customer service representative will contact successful bidders with the details. Results will also be posted on this web site. Settlement for the purchase is ‘regular way’, or three days after the purchase.