Blockchain-Based Repo Platform Launched By Broadridge
FinTech firm Broadridge Financial Solutions has announced the “go-live” of its distributed ledger repo (DLR) platform, building on multiple successful pilots and leveraging blockchain to reduce operational risk and settlement costs.
Broadridge Financial Solutions provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. The company delivers technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge’s infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world.
In the $10 trillion global bilateral repo market, DLR is a transformative platform where market participants can agree, execute and settle repo transactions. Since the first week of its launch, the platform has executed an average of $31B in daily volume.
“This is the first step in the transformation of the $10T global bilateral repo market using smart contracts and distributed ledger technology,” said Vijay Mayadas, President of Capital Markets at Broadridge. “Co-innovating with market participants, we are able to bring solutions to our network of clients that create the next level of operational efficiencies. Within the repo market, distributed ledger technology and smart contracts have shown that they can play an instrumental role in driving efficiencies, reducing risk and enhancing liquidity while leveraging the existing legal and account frameworks.”
Leveraging Broadridge’s fixed income trade processing platform, DLR utilizes Daml smart contracts from Digital Asset as well as VMware Blockchain, a highly scalable distributed ledger platform. DLR reduces operational risk and settlement cost for repurchase, or repo, agreements by providing a secure record of repo trade details, reducing the need for reconciliation and removing obstacles to straight-through-processing.
“By coupling emerging technologies like distributed ledger technology and smart contracts with existing operational account structure functionality, Broadridge has enabled real-time securities mobility in the repo market,” said Vinod Jain, Senior Analyst, Aite Group. “This is a powerful value proposition for firms, especially those looking to reduce risk and enhance operational efficiencies.”
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