IHS Markit and Yieldbroker Collaborate to Enhance AUD/NZD Trade Cost Analysis
LONDON and SYDNEY (29 January 2020) – IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, today announced it is enhancing fixed income analytics in its Trade Cost Analysis (TCA) service in collaboration with Yieldbroker, a leading Tier 1 licensed electronic trading platform for Australian and New Zealand debt securities and derivatives.
The alliance unites IHS Markit’s multi asset TCA tool, independent bond pricing and liquidity data with Yieldbroker’s six trillion of annual AUD and NZD market transaction volume. Together, these services offer customers sophisticated trade execution analytics and a broad spectrum of data to deliver more transparency in fixed income markets.
“This collaboration is a natural extension of our global, multi asset TCA offering to on and off-shore AUD and NZD fixed income market players,” said Chris Pashley, managing director at IHS Markit. “We are committed to continuously enhancing our comprehensive suite of best execution solutions to help customers optimize their trading activity, gain new perspective on fixed income markets and reduce the cost and operational demands of compliance and regulatory reporting.”
“Working with IHS Markit creates a compelling solution for institutions active in AUD and NZD fixed income markets,” said Anthony Robson, CEO of Yieldbroker. “This partnership supports Yieldbroker’s strategic intent to deliver our clients end-to-end trading workflow solutions. With IHS Markit as a partner, we can further improve secondary market transparency, analytics, and insights for the AUD and NZD fixed income markets.”
Evolving market practices and regulations such as Australia’s RG 97, Europe’s MiFID II and PRIIPS have led financial institutions to become more programmatic in their oversight of trade execution quality.
Through the collaboration, common customers can receive:
* Point-in-time execution price slippage benchmarking
* Security level bid-offer spread data
* Security level Liquidity Scoring
* RG 97 reporting data
* Broker-dealer performance analytics
* Request-for-quote (RFQ) analytics
Yieldbroker provides 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 and client market has become the dominant electronic trading platform in the local debt marketplace. An Interdealer market was added to the platform in 2007. Yieldbroker also operates an auction system that is utilised by the Australian Office of Financial Management (AOFM) for the issuance of Australian Government Treasury Bonds, Treasury Indexed Bonds and Treasury Notes, by the RBA to conduct long-end liquidity operations and by a number of semi-government borrowers. Yieldbroker also provides the mechanism used to set the expiry price of local Australian Bond Futures Contracts for the Australian Securities Exchange (ASX), as well as one of the main pricing contributors for the ASX when determining the key Bank Bill Swap Rate (BBSW), the official benchmark for floating rate bonds and other instruments. Yieldbroker is a Tier 1 license holder and a Recognised Market Operator from the Monetary Authority of Singapore (MAS).
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