Yieldbroker operates established electronic markets for Australian interest rate securities and derivatives.
We provide the market knowledge, regulatory oversight and technology infrastructure that has driven the growth of electronic markets as an efficient alternative to traditional over-the-counter methods including telephone-based trading.
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 900 debt securities and OTC 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. We continue to pioneer improvements in electronic trading, respond to changing market conditions and meet the demands of increased regulation.
We have developed a world leading auction platform that governments now use to tender their debt securities, bringing substantial savings to the Australian Commonwealth and State Governments. The Reserve Bank of Australia also uses Yieldbroker to conduct market operations.
The depth and thoroughness of our pricing information has made Yieldbroker the source for benchmark valuations for local interest rate securities. We provide the mechanism used to set the expiry price of local bond futures contracts. The Australian Financial Markets Association (AFMA) uses our pricing when determining the Bank Bill Swap Rate (BBSW), the official benchmark for floating rate bonds and other instruments.
In 2013 we became the first non-US OTC interest rate exchange to be granted temporary relief from the US Commodity Futures Trading Commission (CFTC) to register as a SEF (Swap Execution Facility). We continue to work co-operatively with the CFTC and ASIC on recognition of our Australian multilateral trading facility.
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.
Through 16 years of innovation, our dealing solutions and infrastructure have brought efficiency to debt trading in Australia. We continue to make markets more competitive, efficient, transparent and liquid, providing better pricing, lower trading costs and reduced operational risk for all participants.