NEW YORK, Sept. 10, 2021 /PRNewswire/ -- Broadridge
Financial Solutions (NYSE:BR), a global Fintech leader, today
announced that the first fixed income trades for Sponsored General
Collateral (GC) Service were completed via Broadridge's post-trade
processing solution, in conjunction with DTCC and BNY
Mellon. Offered by DTCC's subsidiary Fixed Income Clearing
Corporation (FICC), the newly launched Sponsored GC Service will
provide the opportunity for Sponsored Members to transact triparty
repo activity with their Sponsoring Members on a general collateral
basis. The Broadridge functionality expands the current fixed
income footprint developed for the FICC's Sponsored Service
which began with Sponsored Repo in 2018.
"Sponsored GC represents a fantastic opportunity to expand our
post-trade capabilities into new asset classes," said Vijay Mayadas, President of Capital Markets at
Broadridge. "Broadridge, in conjunction with DTCC and BNY Mellon,
has worked with multiple clients who seek to be first providers of
GC to adapt to changes in market structure and expand their
post-trade tech stacks, which helps increase liquidity and reduce
balance sheet consumption."
The Sponsored GC Service expands the arsenal of instruments
available under sponsored programs with keen interest from firms
that are cash providers and with holdings in MBS, which are now
eligible with sponsored GC expansion. Other benefits of the GC
initiative include expanded financing offerings by FICC members
with their clients who are non-FICC members, the ability to net
down balance sheet positions, and improved efficiencies with the
potential for reduced costs.
Sponsored Repo saw strong growth across a diverse list of
Broadridge clients as far back as 2018, both globally and
regionally. Sponsored GC was structured by FICC in a similar
manner, so firms involved in Sponsored Repo have grasped the
concepts and the opportunity for Sponsored GC quickly, and many are
integrating or planning the addition of GC to compliment Sponsored
Repo. Although both Sponsored Programs share
commonalities, there are differences between the two offerings
which make them uniquely attractive. For example, Sponsored
GC requires members to initiate deals through normal Triparty
processing, extended to now include the MBS collateral space and
instills different FICC processing timelines. Sponsored Repo, on
the other hand, settles transactions via legacy netting and
settlement processing, requires a reverse repo or repo transaction
to initiate the Sponsored Repo flow, and is for overnight and term
deals only. In addition, many of the same firms are also closely
eyeing the proposed new SFT Clearing Service under NSCC to complete
the circle, as the SFT Clearing Service will include a
sponsored-like offering for equity financing and is anticipated to
be launched later in 2021, subject to regulatory approval.
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. $9 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 13,000 associates
in 21 countries. For more information about us and what we can do
for you, please visit www.broadridge.com.
Investors:
W. Edings Thibault
Investor Relations
+ 1 516-472-5129
Edings.thibault@broadridge.com
Media:
Gregg Rosenberg
Corporate Communications
+1 212-918-6966
Gregg.rosenberg@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.