In a move to streamline its stock lending business and drive operational efficiencies, Matsui Securities, a Japanese online securities broker, has adopted a cloud-based post-trade processing solution from global fintech Broadridge Financial Solutions, Inc.
The modular SaaS platform will enable Matsui Securities to process and settle all stock lending and borrowing transactions, manage positions, and calculate collateral requirements, fees, rebates, and manufactured dividends.
Matsui Securities Enhances Stock Lending Operations
The decision to implement Broadridge's solution comes as Matsui Securities' internally developed system for stock lending transactions had become increasingly complex and burdensome to maintain as the business grew.
"By adopting Broadridge's post-trade processing solution with its proven global track record, we expect to reduce our maintenance burden and facilitate a far more stable management with much greater operational efficiency," said Shinichi Uzawa, the Managing Director of the Corporate Division at Matsui Securities.
Intelligent Wave, an IT services firm specializing in the financial sector, will develop the front-office component, handle system integration, and provide project management and overall consultation to Matsui Securities.
"In today's competitive online securities brokerage market, margin compression means that our clients are looking at new revenue growth opportunities and operating efficiencies,” Ian Strudwick, the Managing Director and Head of Asia Pacific at Broadridge, commented. “Our modular platform allows them to achieve these goals, quickly and with ease, and provides the flexibility for future expansion of their services locally and globally at scale.”
Financial Results of Broadridge
Broadridge recently unveiled its financial outcomes for the second quarter of the fiscal year 2024, demonstrating an uptick of 9% in total revenue, reaching $1,405 million. The company's recurring revenues grew considerably, amounting to $899 million, up 7% from the previous year.
Kicking off the fiscal year 2024, Broadridge displayed remarkable performance in the first quarter, highlighted by significant increases in recurring revenues and adjusted EPS. The company reported a rise of 8% in total income, which stood at $871 million, and a substantial surge of 30% in adjusted EPS to $1.09.
Broadridge recently launched OpsGPT, a cutting-edge solution that employs Generative AI to transform post-trade operations. The firm's dedication to AI innovation doesn't stop with OpsGPT. In the previous year, Broadridge introduced BondGPT, an AI-based tool designed to enhance bond selection processes within the US corporate bond market.
