Tradeweb plans to acquire Yieldbroker for AU$125m to serve Australian superannuation funds
“This acquisition would provide Yieldbroker’s domestic client network, including superannuation funds, with access to Tradeweb’s global multi-asset platform, deep liquidity and advanced technology.”
Tradeweb has announced it is in advanced discussions to acquire Yieldbroker for an all-cash transaction with a purchase price of AUD 125 million.
Yieldbroker is an Australian government bond and interest rate derivatives trading platform covering the institutional, wholesale, and primary markets.
Superannuation funds might access Tradeweb’s multi-asset platform, liquidity, tech
“We believe this transaction would leverage both firms’ innovative trading solutions and deep industry experience to create more liquid, transparent and efficient fixed income markets. This acquisition would provide Yieldbroker’s domestic client network, including superannuation funds, with access to Tradeweb’s global multi-asset platform, deep liquidity and advanced technology”, said the official announcement.
“Conversely, Tradeweb customers worldwide would benefit from increased liquidity, pre-trade transparency, and coverage of the Australian and New Zealand debt capital markets. Australia is home to the 5th largest pension fund market globally, and we believe that this acquisition would help grow Tradeweb’s Asia Pacific footprint and provide meaningful opportunities for domestic and global clients”.
Tradeweb is a global operator of electronic marketplaces for rates, credit, equities and money markets founded in 1996. The company provides access to markets, data and analytics, electronic trading, straight-through-processing, and reporting for more than 40 products to clients in the institutional, wholesale, and retail markets.
The potential deal remains subject to Yieldbroker stockholder approval, final definitive documentation, and if approved, it would still be subject to customary closing conditions and regulatory reviews.
Tradeweb integrated Nasdaq’s US fixed-income trading platform
The news follows Tradeweb Markets’ recent integration of Nasdaq’s US fixed-income electronic trading platform, formerly known as eSpeed, which it acquired two years ago in a $190 million, all-cash transaction.
Upon completion of the integration, Nasdaq’s central limit order book (CLOB) for electronic trading in on-the-run (OTR) US treasuries will serve Tradeweb’s wholesale clients via Dealerweb.
The New York-based company said it has achieved “the final significant technology milestone” relating to the company’s 2021 takeover of the Nasdaq Fixed Income platform into its Dealerweb central limit order book (CLOB). As such, Dealerweb clients will gain flexibility in how they trade OTR US treasuries through the integration, with the option to use either the CLOB or direct streams protocol, with both entities leveraging the same API.
Tradeweb expects the move to increase the number of participants connected to the Dealerweb platform. The latter is now offering US treasury trading through direct streams, CLOB, request-for-quote (RFQ), sessions-based trading, automated trading, list trading, and click-to-trade to clients in the institutional, wholesale, and retail sectors.
The company also said the transaction adds value to the wholesale US Treasuries market, one of the world’s largest and most liquid cash markets. Specifically, the combined platform provides greater choice among protocols, more connected participants, and lower cost.
