By Robb M. Stewart
MELBOURNE, Australia--Australia's main securities exchange will
join a host of banks as an investor in specialist
electronic-markets company Yieldbroker, offering to buy a 49% stake
for 65 million Australian dollars (US$58 million).
ASX Ltd.'s planned shareholding would be non-controlling and
Yieldbroker would remain independently managed, the exchange said
in a statement Thursday.
Elmer Funke Kupper, managing director and chief executive of
ASX, said the investment would complement the bourse's
exchange-traded derivatives, over-the-counter clearing and
collateral management services.
"ASX sees an opportunity for ASX and Yieldbroker to work
together to deliver the next generation of Australia's financial
market trading infrastructure," he said, adding ASX could support
Yieldbroker's plans to grow in domestic and international
markets.
Founded in 1999 by banks in local debt markets, Yieldbroker
operates electronic markets for trading more than 800 Australian
and New Zealand debt securities and interest-rate derivatives,
including government bonds, treasury notes, corporate bonds and
bank bills. More than 100 banks and financial institutions globally
are connected to Yieldbroker's markets, trading an average of A$130
billion a month.
Yieldbroker also operates the auction platform for debt
securities issued by the Australian and New Zealand governments and
several Australian state governments.
If ASX's acquisition is completed, the bourse would become an
investor alongside Australia & New Zealand Banking Group Ltd.,
Commonwealth Bank of Australia Ltd., Citigroup Inc., Deutsche Bank
AG, J.P. Morgan, Macquarie Group Ltd., National Australia Bank
Ltd., Royal Bank of Canada, Royal Bank of Scotland Group PLC,
Toronto-Dominion Bank, UBS AG and Westpac Banking Corp.
Write to Robb M. Stewart at robb.stewart@wsj.com
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