Repurchase agreement (‘Repo’)
Yieldbroker operates a repo market for all AUD denominated debt securities. The Yieldbroker platform promotes liquidity by allowing repo traders to easily access pricing from multiple counterparties in the Australian market.
Traders are able to request pricing from all leading participants in the Australian repo market. Requests can be made on an individual security, or on GC (general collateral), with the addition of an efficient GC allocation screen. Quotes can be requested as fixed rate, or as a margin to floating (i.e. against the RBA cash rate), and on a term or open basis. There are plans to add additional functionality over time, which will automate other aspects of the repo market that are currently manually intensive.
Yieldbroker has been active in the Bank Bills market since 2013, providing a platform which allows participants to trade prime bank paper and negotiable certificate of deposit (NCD) paper via a lit order book screen. While the focus of the bills market is on the 10am BBSW rate set, the system is available to participants throughout the Australian market trading day. Our platform provides significant post trade efficiencies in what has traditionally been a very manually intensive market, including STP, online stock allocations and daily reporting. This, combined with the Yieldbroker standard blotter and audit trail functionality, provides trading, compliance and support functions with the tools they need to operate their business in today’s market.
Yieldbroker is one of the approved trading venues for the new National Best Bid and Offer (NBBO) BBSW process. This means that bids and offers on the Yieldbroker screen are used by AFMA for the purpose of determining the best bid and the best offer in the market, the midpoint of which then becomes the published BBSW rate.
Our objective is to provide all participants in the bank bill market the ability to transact quickly and easily with their selected counterparties, reducing compliance and operational costs.