FinTech firm Broadridge Financial Solutions has announced the onboarding of UBS to their distributed ledger repo platform.
Broadridge 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.
Broadridge’s DLR platform is a transformative platform where market participants can agree, execute and settle repo transactions. Under a digital repo approach, collateral can be detached from the trade agreement, while the cash remains off-chain. Furthermore, DLR allows for the immobilization of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. The platform’s functionality significantly reduces the operating cost and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and intracompany basis and reduces counterparty risk while increasing auditability.
The addition of UBS builds on the platform’s launch which has already amassed $35B in average daily trading volume. UBS, as a major global investment bank, will leverage Broadridge’s blockchain and smart contract-enabled platform to reduce operational risk and settlement costs to its global portfolio of clients.
“We look forward to the enhanced liquidity and reduction of risk that Broadridge’s distributed ledger repo platform provides,” said Paul Chiappetta, Americas Chief Operating Officer of Group Treasury at UBS AG. “This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”
“In the first weeks since launch, DLR has executed $35B in average daily volume – a testament to the success of the platform, which we expect to continue to grow as additional clients join the platform,” said Vijay Mayadas, President of Capital Markets at Broadridge. “We are excited to welcome UBS onto the platform and to continue to bring significant benefits in the form of enhanced liquidity, reduction of risk and operational efficiencies to our clients and the industry.”
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