Welcome to Yieldbroker
Risk management and compliance
Heightened regulatory and compliance oversight and increasing risk management requirements and have highlighted the inherent advantages of electronic trading in what are predominantly over-the-counter markets.
Yieldbroker mitigates risk over the life-cycle of a trade by:
- providing effective pre-trade price discovery,
- efficient, competitive trade execution,
- documenting trade details on an electronic blotter accessible to front and back office users,
- providing ticketing, trade confirmation and allocation functionalities,
- creating electronic links to order management, risk management and settlement systems to enable the automation of pre-trade and post-trade data processing and settlement procedures,
- compiling a comprehensive compliance archive of trade procedures and documentation accessible on demand through the Yieldbroker Debts application.
Organisational objectives
Yieldbroker was established to provide the systems infrastructure, regulatory framework and compliance oversight necessary to facilitate the growth of orderly electronic marketplaces in Australian and New Zealand debt securities and derivatives.
As a shared initiative, Yieldbroker goals are determined in consultation with leading market participants and are focused on generating broad benefits for all debt market users. Yieldbroker’s principle objectives are to:
- Develop accessible dealer-to-client trading platforms that foster liquidity, enhance price transparency and provide clients with efficient deal execution in Australian and New Zealand debt securities and derivatives.
- Establish co-operatively owned, low cost dealer-to-dealer platforms across a broad range of debt securities and derivatives to reduce bank transactional costs.
- Encourage straight-through-processing solutions that improve transactional efficiency and reduce operational and compliance costs.
Straight-through-processing (STP)
Yieldbroker is actively working towards STP solutions to improve transactional efficiency and mitigate operational and compliance risk for all debt market participants. We also recognise that client requirements and capabilities vary greatly and offer a variety of functionalities to assist in the automation of settlement and accounting processes:
- The Yieldbroker DEBTS trading platform can be seamlessly linked with a number of OMS platforms allowing clients to upload trade details and allocations, execute trades then retrieve ticket and settlement details.
- Yieldbroker can also provide assistance to clients who wish to utilise our API and FIX messaging to link pre and post trade infrastructure to the DEBTS application
- Our allocation functionality provides the ability to attach allocation details to transactions and produce individual trade tickets to be issued for each account.
- The ability to receive immediate price confirmation on all trades.
- Yieldbroker and Omgeo have established an interface between their services to facilitate streamlined fixed income processing.
Yieldbroker’s dealer-to-client market
Yieldbroker’s dealer-to-client market is an easy to use service that provides institutional investors with enhanced price discovery and superior deal execution in a secure online trading environment.
Investors are provided with unrivalled dealing flexibility, with the ability to view live indicative prices and simultaneously request competitive two-way markets from thirteen leading pricemakers in over 700 debt securities.
The dealer-to-client market is a service provided to Yieldbroker’s thirteen participant banks to their institutional clients in the Australian and New Zealand debt markets. Asian-based investors can access the Yieldbroker dealer panel via the Reuters RTFI platform.
Yieldbroker’s dealer-to-dealer market
The dealer-to-dealer market provides traders with an efficient low cost alternative that has already captured a substantial share of interbank turnover.
Dealers are able to post and execute live prices, anonymously negotiate online and conduct call-outs to other market participants. Coverage includes Australian government and semi-government securities, AUD denominated corporate, supra-national, agency and sovereign fixed rate securities and FRNs. A swaps and CDS trading platform is currently under development.
The co-operatively owned platform is accessible at minimal cost to all banks that are active in the Australian and New Zealand debt markets with 17 banks currently utilising the service.
Yieldbroker and Order Management Systems
Yieldbroker has established interfaces that allow users of leading Order and Investment Management Systems (including Charles River and Blackrock Aladdin) to automate uploading deal information and execution of trades through the Yieldbroker DEBTS trading platform, providing institutional portfolio managers with convenient access to pricing and order execution.
These FIX-based interfaces also provide clients with the ability to retrieve transaction details enabling the automation of post-trade data processing, settlement and compliance procedures.
Clients wishing to implement an interface should contact Yieldbroker for technical support.
Yieldbroker Data services
Yieldbroker market data gives investors superior pre-trade price transparency with the most complete, accurate and timely estimate of where Australia’s leading dealers are valuing Australian and New Zealand debt securities and derivatives.
Our pricing algorithm continually aggregates price data from the thirteen Yieldbroker dealers, removing inconsistent observations and individual bias to produce a realistic estimate of where the leading market participants are valuing a comprehensive range of debt securities.
Real-time indicative prices are available in over 700 securities, with markets covered including Australian and New Zealand government and semi-government debt, AUD denominated corporate, Supranational, Sovereign and Agency fixed rate securities and FRNs.