Yieldbroker, the dominant electronic trading platform in the Australian fixed income marketplace and Omgeo, the global standard for post-trade efficiency, today announced that they have established an interface between their services to bring streamlined fixed income processing to Australian market participants.
In recent years the fixed income community has started to address inefficiencies in trading and processing practices and begun to move towards a more automated environment. While adoption of straight-through processing (STP) for fixed income has not yet reached the same levels as equities trading, recent focus on automation is a reflection of the global trend towards improving efficiency and reducing risk in post trade practices. The Yieldbroker/Omgeo interface provides a crucial platform to streamline fixed income processing between investment managers and broker/dealers, signaling a significant step towards increasing efficiency levels in the Australian debt markets.
By linking Yieldbroker's online electronic trading platform with Omgeo's trade confirmation service, Omgeo OASYS Global, broker/dealers are able to execute and process block trade and allocated splits through a single interface. This enables increased efficiency and reduces the potential for errors and trade failures, as trade information does not need to be re-entered between trade execution and trade processing. In turn, investment managers using Omgeo Central Trade Manager (Omgeo CTM), the firm's central matching platform, are able to access a wider community of trade counterparties.
Julie Fe'aunati, Director of Relationship Management, Asia Pacific for Omgeo, said "We are pleased to be partnering with Yieldbroker to deliver greater efficiency for our joint client communities. By linking our services we are able to eliminate manual procedures in our clients' trade lifecycles and significantly improve their STP rates for fixed income processing."
Macquarie Bank's Head of Debt Markets, Paul Bide, welcomed the project. "As electronic trading becomes increasingly prevalent in the Australian market, STP is becoming more practical and we strongly support the solutions for debt markets developed by Yieldbroker and Omgeo."
The General Manager of Yieldbroker, Richard Swift, added "Yieldbroker has been actively working towards the automation of pre and post trade processing. One of our key objectives is improving transactional efficiency and the mitigation of operational and compliance risk for all debt market participants. The cost of building and supporting this type of systems interface may have been prohibitive for individual bank participants; but now this shared offering will be immediately available to Omgeo and
Yieldbroker DEBTS is a free, easy to use desktop application which provides enhanced price discovery and superior deal execution in a secure online trading environment. Institutional investors can access unrivalled dealing flexibility with the ability to view live indicative prices and simultaneously request competitive two-way markets from eleven leading price makers in over 700 Australian and New Zealand debt securities.
Omgeo CTM is a single platform for the central matching of fixed income and equity trades to streamline trade flows and increase operational efficiency.
Omgeo OASYS Global, the electronic trade allocation and confirmation solution for brokers/dealers, investment managers and custodian banks around the world, facilitates cross-border trading and minimizes the inefficiency and operational risk associated with manual trade processing.