The global operator of electronic marketplaces Tradeweb Markets Inc. has signed an 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.
According to the official announcement, the all-cash transaction for A$125 million is expected to be finalised later this year.
Tradeweb announced its plans to acquire the Australian trading platform earlier in April.
Yieldbroker CEO Anthony Robson, said:
We are pleased to join forces with the team at Tradeweb and use our combined resources and expertise to deliver an enhanced trading experience for our customers. Yieldbroker has built an incredibly strong legacy with unrivaled liquidity and coverage for domestic Australian and New Zealand fixed income customers. We look forward to this next chapter for our company and for our clients as part of Tradeweb.
Launched in 1999, Yieldbroker operates an institutional and wholesale marketplace (D2C and D2D) for domestic customers in Australian and New Zealand debt securities. The official announcement detailed that the trading platform facilitates trading of about A$6 trillion annually.
Tradeweb further stated that the acquisition would allow it to boost market efficiency. It would grant Australian institutions access to Tradeweb’s liquid and globally diversified multi-asset platform. Additionally, Tradeweb’s international clientele would gain access to Yieldbroker’s bond and derivative marketplaces in Australia and New Zealand, along with pre-trade pricing data offering.
Tradeweb CEO Billy Hult, said:
This is an exciting opportunity for Tradeweb to better serve the participants of a highly attractive and fast-growing fixed income market. 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.
Yieldbroker is jointly owned leading banks active in local fixed income trading with the Australian Securities Exchange (ASX) being the biggest shareholder in the trading platform with 43% stake. ASX has stated it will sell its entire interest in Yieldbroker and expects to about AU$55 million, considering transaction costs.
Helen Lofthouse, the Managing Director and CEO at ASX, added:
We believe this transaction will deliver substantial benefits to the Australian market through Yieldbroker and Tradeweb leveraging each other’s innovative trading solutions and deep industry experience.
ASX has been a shareholder of Yieldbroker since 2014 and, given the relationship built over the years between the two organisations, ASX will continue to work closely with new owner Tradeweb to help foster long term growth and solutions for customers in the Australian fixed income market.
