Collaboration will streamline and automate the primary trade lifecycle for buyside and sellside firms

IHS Markit, a world leader in critical information, analytics and solutions and Yieldbroker, the leading Tier 1 licensed electronic trading platform for Australian and New Zealand debt securities and derivatives, today announced its collaboration, which will bring InvestorAccess to Australia through an interface with Yieldbroker’s electronic trading platform for debt capital markets. The best-of-breed solution combines IHS Markit’s new issuance workflows and Yieldbroker’s secondary market ticketing capabilities, enabling automatic processing of primary market trade tickets post-deal.

Importantly for the Australian market, the joint solution has full functionality for both outright and EFP (spread) transactions, which will help address the best practise observations for allocations in debt capital markets that were identified by ASIC in September 2020 (REP 668).

InvestorAccess enables market participants to view a consolidated global new issuance deal calendar with standardised terms and conditions. They can receive deal updates from a single source through consolidated messaging, electronically enter indications in a centralised location (including laddered, limit and multiple entity orders with secure, one-click submission) and receive new issue allocations and other information during the bookbuild process direct from the syndicate banks. When deal pricing is subsequently finalised, the Yieldbroker interface automatically generates trade tickets for allocations and any relevant hedges. These trades are instantaneously reported using Yieldbroker’s electronic ticket functionality and STP capabilities.

“Yieldbroker continues to focus on providing solutions that help our market participants improve their trading efficiencies and meet their increasing compliance and regulatory needs.  Our collaboration with IHS Markit is another important step forward in the primary market space and will deliver multiple benefits for all participants in the primary market. Yieldbroker is excited to be partnering with IHS Markit and we look forward to being part of the rollout and uptake of the Investor Access service both in Australia and overseas”, said Anthony Robson, Yieldbroker CEO.

“With our strategic focus on interoperability and connecting capital markets globally, this collaboration is one more step forward in bringing the best-of-breed capabilities to our clients to facilitate capital formation. We expect our collaboration with Yieldbroker to be of great value to buyside, sellside and debt capital market issuers in Australia. The collaboration will significantly improve internal processes and controls, providing greater automation across primary and secondary market workflows. Deal terms will be routed directly to investors in standardized, compliant formats, enabling a comprehensive audit trail of all investor and bank interactions to ensure greater accuracy for orderbooks, while decreasing the likelihood of order inflation,” said Seiichiro Miyaoka, managing director and APAC head of global markets group, IHS Markit.

Over the past two decades, the primary market has seen electronic workflows lead to more efficient interactions between issuers and syndicate banks. IHS Markit’s primary market solutions, including IssueBook and IssueNet, are extensively utilised by sellside syndicate desks. InvestorAccess connects buyside and sellside participants, and the collaboration with Yieldbroker will help streamline and automate the entire primary trade lifecycle.