Who is Yieldbroker?
Founded in 1999 by leading participants in the Australian debt market, 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 interest rate securities.
Yieldbroker holds an Australian Markets Licence and is regulated by the Australian Securities and Investments Commission (ASIC). Today, more than 100 major financial institutions access over 800 debt securities and OTC interest rate derivatives on our exchange, trading approximately $130 billion each month.
Who owns Yieldbroker?
Yieldbroker is a co-operative venture with ownership shared equally between leading banking participants in the Australian and New Zealand interest rate markets. The current shareholder banks are ANZ, CBA, Citi, Deutsche, JPMorgan, Macquarie, NAB, RBC, RBS, TD, UBS and Westpac. Several other banks also participate as price providers in our markets. In 2014 the Australian Securities Exchange (ASX) became Yieldbroker’s 13th institutional shareholder acquiring a 49% share in the business which remains independently operated.
What are Yieldbroker’s goals and how are they determined?
Yieldbroker goals are determined in consultation with leading market participants and are focused on generating broad benefits for all interest rate market users. Yieldbroker’s principle objectives are to:
- Develop accessible trading platforms into Australia’s $40 trillion interest rate market that foster liquidity, enhance price transparency and provide clients with efficient deal execution in Australian and New Zealand interest rate securities;
- Constantly evolve our markets through the agility to introduce better solutions to our marketplaces; and
- Encourage straight-through-processing solutions that improve transactional efficiency and reduce operational and compliance costs.
What products can be traded on Yieldbroker?
Yieldbroker operates markets across a broad range of debt and debt derivatives including:
- Australian and New Zealand government securities
- Australian semi-government securities
- AUD denominated fixed rate corporate securities
- AUD denominated floating rate notes
- AUD denominated supranational, sovereign, and agency fixed rate securities
- AUD denominated Treasury notes
- AUD denominated government guaranteed bonds
- AUD Swaps
- AUD Repo
- AUD Bank Bills
- AUD OIS
- AUD FRA
Yieldbroker also operates the auction platform used by the Australian Office of Financial Management (AOFM), New Zealand Debt Management Office (NZDMO) and several state issuers.
What is the cost of the service?
Yieldbroker’s markets are generally accessible to institutional investors at no cost. Through tighter pricing and lower fees, Yieldbroker significantly reduces transactional costs for all market participants.
Who can deal on Yieldbroker?
Leading banking participants in Australian and New Zealand interest rate markets and their institutional clients can execute on the platform. Participants must be professional investors. Yieldbroker does not currently operate a service for retail clients.
Is Yieldbroker available to overseas clients?
Yes, please contact the Yieldbroker Helpdesk on + 61 2 9994 2890 or for more information.
How can I arrange access to Yieldbroker?
1800 220 550 (Within Australia)
+ 61 2 9994 2890 (Outside of Australia)
Does Yieldbroker only trade in AUD securities?
Yieldbroker trades in a broad range of AUD denominated interest rate securities and debt derivatives and NZD securities.
Which banks make prices on Yieldbroker?
There are currently 18 banks that provide pricing to institutional investors and 21 who provide pricing in the interdealer market.
What is a quote request?
This allows participants to send simultaneous enquiries and receive executable two-way markets from price making banks.
Live pricing trading is also available.
How much time do I have to respond to a quote request?
Response times vary depending upon the complexity of the transaction, security type and may also vary over time dependent on market conditions. Participants are often able to customise the response time to suit their needs.
What are market “axes”?
Market “axes” identify participant banks indicative interest in individual issues. “Axes” are identified by an icon next to the relevant security. Trading clients can view axe details by clicking the icon or the security.
The functionality is only available in less liquid security classes with “axes” currently listed in AUD denominated fixed rate corporate securities, AUD supranational, sovereign, agency debt securities, Government guaranteed ADI bonds and FRNs.
What sort of market licence does Yieldbroker operate under?
Yieldbroker was the first fixed income securities trading platform to be awarded an Australian Market Licence and is regulated by the Australian Securities and Investment Commission (ASIC).
What is the Participation Deed?
All organisations that wish to participate in Yieldbroker markets are required to sign a Participation Deed. This is a legal agreement that permits and governs access to the trading platform. If you are interested in joining Yieldbroker, please contact the Yieldbroker Helpdesk on +61 2 9994 2890 or firstname.lastname@example.org.
What are the operating rules?
As the holder of an Australian Markets Licence, Yieldbroker is required to have Operating Rules (s793A) that deal with the activities or conduct of the market or the activities or conduct of participants in relation to the market. In particular, the Operating Rules must ensure that the market is fair, orderly and transparent. The Operating Rules have effect as a contract under seal between Yieldbroker and each participant in the market and between a participant and each other participant in the market.
If you would like to obtain a copy of our operating rules, please contact the Yieldbroker Helpdesk on +61 2 9994 2890 or .
What relationship does Yieldbroker have with Thomson Reuters?
Yieldbroker intraday market data is available through the Thomson Reuters network. Data can be easily accessed by typing the item code “YIELDBROKER” into the Thomson Reuters quote window. For more information, please contact your Thomson Reuters representative.
What is Yieldbroker’s Pricing Methodology?
Yieldbroker produces both real-time and end-of-day (EOD) indicative rates for a wide range of debt securities. These indicative rates are based on data from Yieldbroker’s licensed financial markets which includes:
- Indicative price estimates – all dealers who wish to trade in a security with clients are required, at least, to provide an estimated price for that security;
- Market axes – indications from a dealer as to their buying/selling intention in a security which may include volume and the price at which the bank indicates a willingness to trade; and
- “Live” pricing – executable bids and offers.
The indicative calculation method is dependent upon the security type and the availability of executable pricing.
How can I access Yieldbroker price data?
Users can access price information through the DEBTS application or subscribe to a Yieldbroker FIX feed. Yieldbroker market data is also available through Thomson Reuters. Data can be easily accessed by typing the item code “YIELDBROKER” into the Reuters quote window.
To apply for full access to Yieldbroker data on Reuters please complete this form (link to form).
Yieldbroker also compiles a rate sheet comprising end-of-day valuation data. To request a copy of the ratesheet, please contact the Yieldbroker Helpdesk on 1800 220 550 (Within Australia), +61 2 9994 2890 (Outside Australia) or email@example.com.
Does Yieldbroker offer STP?
Yes, we provide a wide variety of STP solutions. For more information, please refer to the ‘Straight-Through Processing’ section under “Our Markets”.
What back office services does Yieldbroker offer?
Access to the Yieldbroker DEBTS platform is free to all back office, accounting and compliance staff of trading site users and some of the services currently offered by Yieldbroker are:
- Clients can utilise our API and FIX messaging to link in-house pre-trade or post-trade infrastructure to the DEBTS application
- The Yieldbroker DEBTS trading platform can be seamlessly linked with a number of order management platforms (eg. Charles River, BlackRock’s Aladdin) allowing clients to upload order details and allocations, execute trades then retrieve ticket and settlement details.
- Our allocation functionality provides the ability to attach allocation details to transactions to allow individual trade tickets to be issued for each account.
- The ability to receive immediate price confirmation on all trades
What is Yieldbroker DEBTS?
Yieldbroker’s DEBTS our desktop user interface. It has a proven track record for security and reliability. DEBTS is deployed across a broad range of financial institutions, both locally and offshore, linking them into a real-time marketplace for Australian interest rates.
For more information, please visit our ‘Technology’ section.
What are Yieldbroker’s IT Strategies?
Our trading platform was designed to be both highly scalable and adaptable: with the flexibility to easily adjust dealing procedures, add functions or be expanded into new markets.
A second signature of our system is interoperability. We foster connectivity that supports straight-through-processing (STP) and improves transactional efficiency.
Yieldbroker is compliant with the established protocols at the core of electronic trading world-wide, including Financial Information eXchange (FIX). We seamlessly link our trading platform to order management systems such as BlackRock’s Aladdin and Charles River, pricing and risk management systems such as ION and post-trade systems such as Markit Wire and Omgeo.
Finally, DEBTS is easy-to-use. Our intuitive functionality ensures dealers have surety in trading and we regularly update functionality based on user feedback to constantly improve our system.
Can Yieldbroker link to my order management and back office systems?
Clients can utilise our API and FIX messaging to link in-house pre-trade or post-trade infrastructure to the DEBTS application. The DEBTS trading platform can also be seamlessly linked with a number of OMS platforms (eg. Charles River, BlackRock’s Aladdin) allowing clients to upload trade details and allocations, execute trades then retrieve ticket and settlement details.
What IT systems do I need to operate Yieldbroker?
Yieldbroker DEBTS can be downloaded from the Yieldbroker website to your desktop PC satisfying the following minimum requirements:
- Windows XP, Vista or Windows 7
- Microsoft .NET Framework version 3.5 (available free from Windows Update).
- Network connectivity to Yieldbroker
A technical briefing document for IT staff is available here.
Is Yieldbroker only available on the Internet?
The Yieldbroker DEBTS application can connect securely via the public Internet or through premium networks such as BT Radianz, Pipe Networks and ASX Net.