Broadridge automates post-trade solution for brokerage firms
Client demand has grown significantly in recent times, which comes as both an opportunity and a challenge for brokers as system infrastructure costs also rise with ongoing market and regulatory changes. The race to the top requires firms to ditch inadequate legacy technology.
Broadridge Financial Solutions has launched its new Post-trade FastStart solution to provide business-critical functionality tailored to the needs of small- and mid-tier firms.
The whole post-trade process – importing transactions to content verification, matching, sending to and receiving data from settlement institutions, interfacing with domestic and global markets, and settlement – is automated by the solution designed to improve brokers’ access to domestic and global markets faster and more simply.
Danny Green, Head of Post-trade at Broadridge International, said: “Brokerage firms are facing increasing client demand for a wider variety of products and services, while also dealing with rising system infrastructure costs, ongoing market and regulatory change, and increased risk due to inadequate legacy technology. Firms need to transform their operations to be ready for next for their clients and Post-trade FastStart can meet that challenge with minimal implementation time and a low-cost base.”
Post-trade FastStart facilitates brokers’ handling of domestic and foreign equity and bonds, stock lending, collateral management, and real-time multi-currency, multi-market transaction processing. The solution is managed centrally in a controlled and secure environment in Broadridge’s data centers. The technology provider has made efforts to stay ahead of the competition in the adoption of the ABCDs of innovation – AI, blockchain, the cloud, and digital – in order to help customers update their infrastructure from legacy systems.
Broadridge provides global market connectivity to local agents and custodians via SWIFT messaging to enable securities firms to be up and running quickly. The post-trade solution is being particularly targeted to the APAC region at the moment, and Broadridge ensures the proper domestic connections, such as BOJ-NET and JASDEC in Japan, SGX-PTS2 in Singapore, and CCASS in Hong Kong.
In September 2020, the fintech company has partnered with Smith & Williamson Group to provide its Shareholder Rights Directive (SRD II) solution for proxy voting in order to to support its discretionary and non-discretionary execution clients, spanning both institutional and retail investors. S&W’s new responsibilities under SRD II includes the distribution of meeting agendas within stricter timeframes, reconciling votes on a daily basis, and processing votes “without delay.”