Increased liquidity, transparency, and efficiency will result from the transaction in the Australian and New Zealand fixed income markets.
Tradeweb Markets Inc., a major international provider of rates, credit, equities, and money market electronic marketplaces, announced that it has signed a binding agreement to acquire Yieldbroker, a prominent Australian trading platform for Australian and New Zealand government bonds and interest rate derivatives serving the institutional, wholesale, and primary markets. The merger will make use of both companies’ cutting-edge trading tools and extensive industry knowledge to build more opulent, open, and effective fixed income markets.
The institutional and wholesale marketplace (D2C and D2D) of Yieldbroker has served as a leading electronic trading platform for domestic customers in Australian and New Zealand debt securities for more than 20 years. Australia’s pension fund market is currently the fifth largest in the world1 and its sovereign bond market is the twelfth largest. The Yieldbroker platform currently facilitates trade for over A$6 trillion a year.
With their respective launches in 1996 and 1999, Tradeweb and Yieldbroker were pioneers in the electronicization of fixed income markets. Yieldbroker, a pioneering example of consortium-built infrastructure, is jointly owned by leading banks involved in local fixed income trading and the Australian Securities Exchange (ASX). It also shares Tradeweb’s culture of working with market players for the good of the whole market.
The acquisition supports Tradeweb’s goal of improving market efficiency. Superannuation (employer-sponsored retirement account) funds and Australian institutions will have improved access to Tradeweb’s liquid, global, multi-asset platform. International clients of Tradeweb will be able to easily access Yieldbroker’s bond and derivative markets in Australia and New Zealand, as well as the company’s dependable pre-trade price data service.
Tradeweb CEO Billy Hult remarked, “This is an excellent opportunity for Tradeweb to better serve the players in a very attractive and rapidly expanding fixed income market. We share Yieldbroker’s dedication to client collaboration and ongoing innovation, and by working together, we will be in a better position to significantly improve the bond and derivatives buying experience for Australian and New Zealand consumers. As our clients look forward to deeper engagement and connectivity in global markets, we look forward to offering them an even more seamless service.”
Anthony Robson, CEO of Yieldbroker, stated, “We are happy to join forces with the team at Tradeweb and leverage our combined resources and expertise to create a better trading experience for our customers. With unparalleled liquidity and coverage for domestic Australian and New Zealand fixed income customers, Yieldbroker has established an extraordinarily strong legacy. As a member of Tradeweb, we eagerly anticipate this new chapter for our business and our clients.”
The 125 million Australian dollar, all-cash deal is anticipated to close later this year, pending customary closing requirements and regulatory approvals.
Source: FinTec Buzz
