Multi-asset market operator, Tradeweb Markets has entered into a definitive agreement to acquire Yieldbroker, an Australian trading platform for Australian and New Zealand government bonds and interest rate derivatives covering the institutional, wholesale, and primary segments.
This follows an announcement made in April and the transaction will try to leverage both firms’ trading solutions and industry experience to create more liquid, transparent and efficient fixed income markets.
Yieldbroker’s dealer-to-client (D2C) and dealer-to-dealer (D2D) institutional and wholesale marketplace has operated as an electronic trading platform for domestic customers in Australian and New Zealand debt securities. Australia is currently the fifth largest pension fund market globally and has the twelfth largest sovereign bond market. The Yieldbroker platform facilitates trading of approximately A$6 trillion annually.
Jointly owned by leading banks active in local fixed income trading, and the Australian Securities Exchange (ASX), Yieldbroker is an example of consortium-built infrastructure.
Following the acquisition Australian institutions, including superannuation funds, will get access to Tradeweb’s liquid, global, multi-asset platform. Tradeweb’s international client base should be able to tap into Yieldbroker’s Australian and New Zealand bond and derivative marketplaces, as well as the firm’s pre-trade pricing data offering.
“This is an exciting opportunity for Tradeweb to better serve the participants of a highly attractive and fast-growing fixed income market,” said Tradeweb CEO Billy Hult. “We share Yieldbroker’s commitment to client collaboration and continuous innovation, and together we will be even better-positioned to add significant value for Australian and New Zealand bond and derivatives customers. We look forward to providing our clients an even more seamless offering, as they continue to look for greater engagement and connectivity in the international markets.”
The A$125 million, all-cash transaction is expected to close later this year, subject to customary closing conditions and regulatory reviews.
©Markets Media Europe 2023
