Vega-Chi to Start Junk Bond Trading Platform Cutting Out Dealers

Vega-Chi Ltd., the operator of a trading platform in Europe for convertible and high-yield debt, plans to offer a service in the U.S. for junk bonds as soon as July.

Vega-Chi received regulatory approval as a broker-dealer from the Financial Industry Regulatory Authority in April and began marketing this month, said Constantinos Antoniades, the former Goldman Sachs Group Inc. trader who founded the London- based firm.

The company matches buyers’ and sellers’ orders, bypassing traditional market makers. Its effort comes as Wall Street’s biggest banks are paring their balance sheets, cutting inventories of corporate bonds before the so-called Volcker rule and amid increased volatility stemming from Europe’s sovereign- debt crisis.

“The world is changing, and we’re positioned to take advantage,” Antoniades said today in an interview in New York.

Speculative-grade bonds are rated below Baa3 by Moody’s Investors Service and lower than BBB- at Standard & Poor’s.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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