Broadridge releases its DLT Repo Platform

Fintech firm Broadridge Financial Solutions, Inc revealed today the successful launch of its distributed ledger repo (DLR) platform.

According to the announcement, the blockchain-enabled platform has provided early participants with reduced risk, operational costs and enhanced liquidity, while also accelerating their digitization journey.

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

Vijay Mayadas, Broadridge

Vijay Mayadas
Source: LinkedIn

This is the first step in the transformation of the $10T global bilateral repo market using smart contracts and distributed ledger technology. 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.

Broadridge Financial Solutions

DLR provides a single space where market participants can agree, execute and settle repo transactions. The platform also allows for the immobilization of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. Its functionality reduces the operating cost and risk of all repo activity, such as intraday, overnight and term repos, both on a bilateral and an intracompany basis and also reduces counterparty risk while increasing auditability. Broadridge reported that the first week since its launch, DLR has executed $31 billion in average daily volume.

DLR leverages Broadridge’s leading fixed income trade processing platform. The platform also utilizes Daml smart contracts from Digital Asset and VMware Blockchain, a scalable distributed ledger platform. DLR reduces operational risk and settlement cost for repurchase, or repo, agreements through a secure record of repo trade details, which reduces the need for reconciliation and removing obstacles to straight-through-processing.

Vinod Jain, Senior Analyst, Aite Group, added:

Vinod Jain, Aite Group

Vinod Jain

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. This is a powerful value proposition for firms, especially those looking to reduce risk and enhance operational efficiencies.

Last week, Broadridge announced the acquisition of AdvisorStream, a provider of digital engagement and marketing solutions for the global wealth and insurance industries. Earlier that week, the fintech firm also released the latest version of its Private Market Hub platform, using Amazon Managed Blockchain from Amazon Web Services, Inc. (AWS). Broadridge utilises distributed ledger technology (DLT) to better streamline and connect the private equity ecosystem and assets.

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