The Yieldbroker Platform
The Yieldbroker Exchange (YBX) and DEBTS platform is used extensively by participants in OTC markets to trade in debt and debt derivatives. The platform supports secondary trading in Australian and New Zealand government, semi-government and corporate securities, supra-national , agency and sovereign bonds, as well as trading in IRS, basis swaps, OIS, FRA, repo, and bank bills.
Yieldbroker has exclusive mandates with the RBA, AOFM, NZDMO and a number of the local state authorities to conduct their primary issuance tenders on our platform. YBX technology has been developed over 15 years and is fully customised to suit the local market conventions including Live Price, Order book, Axe, Broker Pools and RFQ trading workflows
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, middle and back office users, including compliance and audit functions
- 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 application
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.
Yieldbroker goals are determined in consultation with leading market participants and are focused on generating broad benefits for all market users. Yieldbroker's principle objectives are to:
- Develop an accessible dealer & client trading platform that fosters liquidity, enhances price transparency and provides clients with efficient deal execution in Australian and New Zealand debt securities and derivatives
- Establish a low cost interdealer platform 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
Yieldbroker supports STP solutions that 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 (Order Management System) 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 proprietary interface 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 & Client market
Yieldbroker's Dealer & 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 & Client market is a service provided to Yieldbroker's thirteen participant banks to their institutional clients in the Australian and New Zealand debt markets.
Yieldbroker's Interdealer market
The Interdealer market provides traders with an efficient and low cost alternative to traditional voice execution methods.
Our platform is built on the principles of efficiency, STP, fairness and innovation and offers participants a low-cost method for executing trades with other dealers. We offer dealers a superior system for executing Overnight Index Swaps, Forward Rate Agreements and Interest Rate Swaps, including Basis and Bills/LIBOR. Dealers can choose to execute their trades via orderbooks or using our favoured callout (request-for-quote) model.
Dealers in our Debt market are able to post and execute live prices in our orderbook, 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.
Yieldbroker and Order Management Systems (OMS)
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.
With our partner, Thomson Reuters, users are able to subscribe to real-time indicative data for over 700 securities, including Australian and New Zealand government and semi government debt, AUD denominated corporate, Supranational and Agency fixed rate securities and FRNs. End-of-Day data is delivered to participants in the form of a rate sheet, and provides the market with benchmark rates for valuation purposes.
Interdealer users are able to refer to live indicative mid-rates or executable bids and offers on screen, and standard reports provide traders and their management/compliance teams with market and company specific information.