Tradeweb set to acquire Australian electronic trading platform Yieldbroker

The move will help bring increased liquidity, transparency and efficiency to Australian and New Zealand fixed income markets.

Tradeweb Markets has entered into a definitive agreement to acquire Australia-based Yieldbroker, a government bond and interest rate derivatives trading platform covering the institutional, wholesale and primary markets.

The transaction will leverage both firms’ trading solutions and industry experience to create more liquid, transparent and efficient fixed income markets.

The A$125 million, all-cash transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.

For over 20 years, Yieldbroker’s institutional and wholesale marketplace, D2C and D2D, has operated as an electronic trading platform for domestic customers in Australian and New Zealand debt securities. The platform facilitates trading of approximately A$6 trillion annually.

Jointly owned by banks active in local fixed income trading and the Australian Securities Exchange (ASX), Yieldbroker is a consortium-built infrastructure which shares Tradeweb’s culture of collaboration with market participants to benefit the market at large.

“This is an exciting opportunity for Tradeweb to better serve the participants of a highly attractive and fast-growing fixed income market,” said Billy Hult, chief executive of Tradeweb.

“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.”

Following the acquisition, Australian institutions, including superannuation funds, will have access to Tradeweb’s liquid, global, multi-asset platform. Meanwhile, Tradeweb’s international client base will have access to Yieldbroker’s Australian and New Zealand bond and derivative marketplaces, as well as the firm’s pre-trade pricing data offering.

The move will also help grow Tradeweb’s Asia Pacific footprint, while also providing increased opportunities for domestic and global clients.

“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,” said Anthony Robson, chief executive of Yieldbroker.

“Yieldbroker has built an incredibly strong legacy with unrivalled 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.”