Yieldbroker, which operates the established electronic exchange for Australian interest rate securities, has become the first multilateral, foreign-regulated trading facility to gain access to the US market.
More than 100 financial securities accessed debt securities and interest rate derivatives on the Yieldbroker exchange, which traded around $200 billion a month. An approval from the US Commodity Futures Trading Commission (CFTC) would now see Yieldbroker open to an American market.
Yieldbroker chief executive, Richard Swift, said that the decision would strengthen the domestic economy and keep markets dynamic; it was also a reflection of Australia’s solid regulation position.
“Across the globe we are seeing greater use of electronic trading platforms, and to meet these global needs these platforms must honour multiple jurisdiction’s laws and regulations,” he said.
“This decision allows Yieldbroker to continue developing electronic platform liquidity… through greater regulatory certainty and lower costs.”
The Australian Securities and Investment Commission (ASIC) senior executive leader, Oliver Harvey, said the opening of Yieldbroker into the US was a further part of ASIC’s aims for international market expansion.
“[This] is another important step in ASIC’s ongoing work to support Australian entities seeking recognition in foreign markets,” he said.
“The relief CFTC has provided Yieldbroker is an important step… to open, fair, orderly and transparent global markets.”
The Australian Securities Exchange had a 49 per cent shareholding in the business as of November 2014.
