Yieldbroker receives ‘world first’ approval to tap US market
Yieldbroker, Australia’s OTC interest rate exchange, has become the first foreign-regulated, multilateral swap trading facility to receive long-term approval to access US-based customers.
The move secures billions of dollars of trade business, removes commercial uncertainty and is one more step towards achieving Yieldbroker’s vision of becoming a globally significant platform for trading in Australian and New Zealand dollar interest rate securities.
More than 100 major financial institutions access over 900 debt securities and interest rate derivatives on the Yieldbroker exchange, trading approximately $200 billion each month.
Founded in1999 by leading banks in local debt markets, Yieldbroker holds an Australian Market Licence and is regulated by the Australian Securities and Investments Commission (ASIC). The Australian Securities Exchange acquired a 49% shareholding in the business in November 2014.
The approval to operate as an alternative swap execution facility was granted by the US Commodity Futures Trading Commission (CFTC) under the Qualifying Australian Licensed Market regime.
The decision is seen as a strong endorsement of the Australian regulatory environment. It follows a three-year period during which Yieldbroker received a series of short-term no-action relief letters from the CFTC, which had to be continuously extended as each one expired.
Yieldbroker CEO, Richard Swift welcomed the decision and said it was important for the Australian economy that connections with international and domestic participants in Australian interest rate markets remained functional and dynamic.
“This decision allows Yieldbroker to continue developing electronic platform liquidity and benefits our participants through greater regulatory certainty, lower costs and reduced levels of operational and compliance risk.
“Across the globe we are seeing greater use of electronic trading platforms and to meet global needs these platforms must honour multiple jurisdictions’ laws and regulations. The fact that we are the first foreign-regulated, multilateral swap trading facility in the world to meet rigorous US standards reinforces how well Yieldbroker is positioned to benefit from this trend,” he said.
Mr Oliver Harvey, Senior Executive Leader – Market Infrastructure at ASIC said “The relief the CFTC has provided Yieldbroker is another important step in ASIC’s ongoing work to support Australian entities seeking regulatory recognition in foreign markets. Through ASIC’s efforts on regulatory co-ordination, entities like Yieldbroker enjoy continued access to open, fair, orderly and transparent global markets”.
A link to the full CFTC Press Release is provided below.
Yieldbroker operates the established electronic exchange for Australian interest rate securities and derivatives.
Founded in 1999 by leading banks in local debt markets, 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 interest rate derivatives on our exchange, trading approximately $130 billion each month. Yieldbroker has the agility to introduce better solutions as markets evolve; combining our IT expertise with the understanding we gain through working closely with market participants. Yieldbroker is the comprehensive electronic market for Australia’s interest rate securities and derivatives.
For more information about Yieldbroker, please visit www.yieldbroker.com
Financial & Corporate Relations
Tel: +61 2 8264 1000
Mobile: 0411 852 448