The Australian Securities Exchange (ASX) has announced that it has put forward an offer to buy a stake in Yieldbroker, a firm that operates electronic markets in trading Australian and New Zealand debt securities and interest rate derivatives.
Yieldbroker’s markets include Australian government and semi-government bonds, treasury notes, corporate bonds, floating rate notes, New Zealand government bonds, interest rate swaps, overnight index swaps, forward rate agreements and bank bills.
More than 100 banks and financial institutions globally are connected to Yieldbroker’s markets, trading an average of A$130 billion each month.
Yieldbroker also operates the auction platform for debt securities issued by the Australian and New Zealand governments and several Australian state governments.
ASX proposed to acquire the 49% shareholding in Yieldbroker for A$65 million. The company, which will remain independently managed, counts among its other owners an array of major international banks.
The proposed transaction has been supported by both companies’ boards, and remains subject to acceptances from Yieldbroker shareholders and completion of due diligence.