UBS joins Broadridge’s Distributed Ledger Repo platform

Fintech firm Broadridge Financial Solutions, Inc., has onboarded UBS onto its transformative distributed ledger repo (DLR) platform. The blockchain-enabled platform allows early participants to accelerating their digital journey and benefit from reduced risk and operational costs as well as enhanced liquidity.

UBS’ addition builds on the success of the platform and accelerates the expansion of the DLR network, leveraging Broadridge’s fixed income platform that processes more than $6 trillion in average daily volume and includes 20 of the 24 primary dealers.

Paul Chiappetta, Americas Chief Operating Officer of Group Treasury at UBS AG, said:

We look forward to the enhanced liquidity and reduction of risk that Broadridge’s distributed ledger repo platform provides. This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.

Broadridge Financial Solutions

Market participants can agree, execute and settle repo transactions on the DLR platform. A digital repo approach allows collateral to be detached from the trade agreement and the cash remains off-chain. DLR also enables the immobilization of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. The platform’s functionality lowers the operating cost and risk of repo activity, including intraday, overnight and term repos, on a bilateral, as well as intracompany basis and lowers counterparty risk while increasing auditability.

Vijay Mayadas, President of Capital Markets at Broadridge, commented:

Vijay Mayadas, Broadridge

Vijay Mayadas
Source: LinkedIn

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. 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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