Broadridge Financial Solutions, Inc. (NYSE: BR) announced on Monday that Swiss investment banking giant UBS has joined its transformative distributed ledger repo (DLR) platform.
The American financial services company explains DLR as a single platform where market participants can agree, execute and settle repo transactions. The decentralized platform keeps cash off-chain, thus detaching collateral from the trade agreement. The ownership of the underlying securities in the repo transactions is transferred via smart contracts executed on the platform.
The participation of UBS will accelerate the expansion of the DLR network, according to the company.
“We look forward to the enhanced Liquidity and reduction of risk that Broadridge's distributed ledger repo platform provides,” Paul Chiappetta, Americas Chief Operating Officer of Group Treasury at UBS AG, said in a statement.
He further added that “this partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”
Many Benefits of Blockchain
Broadridge processes more than $6 trillion in average daily volume (ADV) on its fixed income platform and includes 20 out of 24 primary dealers. With the blockchain-based platform, the company is aiming to reduce operating costs and risk of all repo activity, while increasing auditability.
Vijay Mayadas, President of Capital Markets at Broadridge, said: “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.”
Meanwhile, Broadridge closed a few key acquisitions this year that will significantly improve its business. It bought trading and connectivity technology provider, Itiviti, for around €2.143 billion and acquired Alpha Omega, a market-leading FIX-based post-trade solutions provider for the investment management industry.
