ASX to pay $65 million for derivatives marketplace Yieldbroker

Following an agreement between the Australian Stock Exchange (ASX) and derivatives marketplace operator Yieldbroker that ASX will pay $65 million for a strategic 49% stake in the firm, it has today been confirmed that the transaction has taken place.

Yieldbroker, founded in 1999, specialises in markets for trading 800 Australian and New Zealand debt securities and interest rate derivatives, with over 100 banks and financial institutions globally connected to Yieldbroker’s markets, trading an average of $130 billion each month.

A proposal for ASX to acquire a 49% shareholding in Yieldbroker for a total of $65 million was announced on 18 September 2014.

ASX’s 49% stake is non-controlling and Yieldbroker remains independently managed. The investment is funded from ASX’s existing cash and is expected to be broadly EPS neutral in the first full-year.

Mr Elmer Funke Kupper, ASX Managing Director and CEO, said: “We are pleased to finalise the ASX-Yieldbroker partnership. It will allow the companies to work together to bring new services and efficiencies to the Australian market, in both the exchange-traded and OTC environments. Yieldbroker has a strong track record in being innovative and highly responsive to its clients. This makes them a good partner for ASX as we build the next generation of Australia’s financial market infrastructure.”

Mr Richard Swift, Yieldbroker CEO, said: “Yieldbroker is the gateway to Australia’s OTC debt and interest rate
derivatives markets. The partnership with ASX has been welcomed by market participants and will allow us to accelerate the expansion of our range of transparent, liquid and competitive services to banks, fund managers, corporates and governments.”

For the full announcement from ASX, click here.


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