NEW YORK, June 14, 2021 /PRNewswire/ -- Broadridge
Financial Solutions, Inc. (NYSE:BR), a global Fintech leader,
today announced the successful go-live of its transformative
distributed ledger repo (DLR) platform. Early participants of the
blockchain-enabled platform are realizing significant and immediate
benefits of reduced risk, operational costs and enhanced liquidity,
while also accelerating their digitization journey. The launch
builds on the success of multiple pilots with sell-side and
buy-side firms.
DLR provides a single platform where market participants can
agree, execute and settle repo transactions. 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 an intracompany basis and also reduces
counterparty risk while increasing auditability. In the first week
since launch, DLR has executed $31B
in average 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 leading 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."
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with over $4.5 billion in
revenues, provides the critical infrastructure that powers
investing, corporate governance, and communications to enable
better financial lives. We deliver 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
addition, Broadridge's technology and operations platforms underpin
the daily trading of on average more than U.S. $10 trillion of equities, fixed income and
other securities globally. A certified Great Place to Work®,
Broadridge is a part of the S&P 500® Index, employing over
12,000 associates in 21 countries.
For more information about us and what we can do for you, please
visit www.broadridge.com.
Investors:
Edings Thibault
Head of Investor Relations, Broadridge
+1 516-472-5129
Edings.Thibault@Broadridge.com
Media:
Tina Wadhwa
Corporate Communications, Broadridge
+1 212-973-6164
Tina.wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.