In 1999 leading debt market participants came together to establish an efficient electronic marketplace for interest rate securities.
Until then, these products were traded over the phone. Yieldbroker’s formation signalled the start of an electronic, multi-dealer exchange for OTC interest rate securities, making these markets more liquid and accessible. We provided the robust infrastructure and oversight required for over-the-counter (OTC) interest rate markets to gain the benefits of electronic trading.
In 2001, we opened dealer-to-client markets in Commonwealth government bonds and semi-government instruments. The following year we began trading in corporate, supra-national, agency and sovereign fixed rate securities. Turnover soon exceeded $4 billion per month.
In 2004, Yieldbroker became the first interest rate securities platform to be awarded an Australian Markets Licence. We also began a major technology upgrade, leading to our DEBTS trading platform being introduced in 2006. This greatly increased the flexibility of our dealing workflows and the range of interest rate instruments that could be traded electronically.
To support our broader growth goals, we also sought the participation of all banks involved in Australia’s debt markets. Our ownership group eventually expanded to include twelve leading banks, with our objectives determined by an independent management team and Board of Directors.
By 2007, turnover exceeded a third of Australia’s total dealer-to-client transactions. At that point we launched inter-dealer trading platforms covering most debt securities.
Yieldbroker introduced a custom made auction platform in 2009 which the Australian Office of Financial Management (AOFM) uses to tender Commonwealth Government debt securities. Subsequently, the platform was adopted by state governments, the New Zealand Debt Management Office and the Reserve Bank of Australia.
In recent years Yieldbroker has greatly expanded the range of products available for electronic trading, including derivatives like swaps, overnight indexed swaps (OIS) and money market instruments. Over 100 financial institutions access markets on Yieldbroker, trading approximately $130 billion a month.
We now offer a variety of dealing solutions and innovative market structures tailored to the requirements of each instrument. With competitive pricing from 18 price banks, investors can access the best dealing opportunities in transparent markets with unmatched liquidity.
In 2014 the Australian Securities Exchange (ASX) made a significant investment in the Yieldbroker business. This partnership allows Yieldbroker to develop services alongside the local market’s primary exchange for the benefit of our shared customers.
Yieldbroker is the comprehensive electronic market for Australia’s interest rate securities and derivatives.