Yieldbroker, an electronic trading platform in the Australian fixed income marketplace, and Omgeo, a global standard for post-trade efficiency, 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 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 trades 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.
"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," said Julie Fe'aunati, director of relationship management, Asia Pacific for Omgeo, in a press release. Paul Bide, head of debt markets, Macquarie Bank, welcomed the project, saying in a press release,"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."