OpenBondX LLC, an alternative trading system, is planning to consolidate with Direct Match Holdings Inc., an electronic marketplace for U.S. Treasurys.

The consolidation will form the OpenBondX Direct Match platform, which will offer an all-to-all trading system for dealers, proprietary trading firms and institutional customers.

The platform is expected to provide central limit order book trading for on-the-run U.S. Treasurys by the first quarter of 2017, followed by U.S. corporate bonds. OpenBondX co-founder and CEO Alistair Brown will assume the post of CEO of the combined company, and Direct Match co-founder and CEO Jim Greco will be head of rates and chief technology officer.

Former Direct Edge CEO William O'Brien will be executive chairman for the joint firm. Direct Match investors Roger Ehrenberg, from IA Ventures, and Dan Ciporin, from Canaan Partners, will serve on the combined company's board.