RBA to conduct operations in long-end securities through Yieldbroker

Sydney 22nd June 2009 - Yieldbroker Pty Limited, today announced that the Reserve Bank of Australia (RBA) would begin using the Yieldbroker auction system to conduct open market operations in long-end semi government securities. The system will become available for RBA open market operations from July 1.

Commenting on the relationship with the RBA, Yieldbroker's General Manager Richard Swift said "Yieldbroker is committed to developing innovative solutions that promote efficiency in markets. We believe that the automation of the RBA’s dealing procedures is part of a natural progression towards electronic trading in debt markets, which has inherent advantages in trade processing and reducing operational and compliance risk."

The RBA will be utilising the auction system used by the AOFM to conduct tenders for Commonwealth Government Treasury Bonds and Treasury Notes and Swift noted the potential for further expansion in the systems usage:

"We are in discussions with a number of other issuers and will be making more announcements shortly. Our hope is that the Yieldbroker auction system will become the standard method of issuance for domestic debt market borrowers."

JP Morgan's Head of Rate Trading, David Ioannidis, praised the new auction system stating "the Yieldbroker product should result in significant improvements over current dealing arrangements, greatly decreasing response times and reducing the potential for dealing errors."

Yieldbroker staff will be contacting interested parties in the next few weeks to provide training and ensure appropriate access to the auction system. For more information, contact the Yieldbroker Helpdesk on 1800 220 550.

About Yieldbroker

Founded in 1999 as a co-operative venture between leading debt market participants, Yieldbroker was formed 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. 

Commencing operation in 2001, Yieldbroker's dealer-to-client market is the dominant electronic trading platform in the Australian debt marketplace, providing institutional investors with the ability to view live indicative prices and request competitive two-way markets in over 700 debt securities.

Yieldbroker has recently successfully launched dealer-to-dealer markets in various debt security classes and remains committed to expanding its dealer-to-client, and dealer-to-dealer offerings across a broad range of debt and debt derivative products.

In early 2009 Yieldbroker launched an auction functionality which is currently utilised by the AOFM to conduct tenders for Commonwealth Government Treasury Bonds and Treasury Notes.

For further information contact:

Richard Swift
Yieldbroker
Tel. +61 2 9994 2890
Click here for email