SocGen goes live on Broadridge’s DLT repo platform
“Broadridge continues to drive the transformation of repo market infrastructure with the distributed ledger technology repo platform via the utilization of smart contracts to digitize the trade agreement between counterparties and leveraging digitized assets to reduce settlement cycles.”
Société Générale has gone live on Broadridge’s DLT-enabled repo platform (DLR) that empowers participants to realize immediate benefits of reduced risk and operational costs and enhanced liquidity.
The blockchain-based repo platform is built on Broadridge’s leading fixed income platform that processes over $8T per day and is expected to bring efficiency to market infrastructure and increased capital velocity.
DLR couples emerging distributed ledger and smart contract technology with existing operational account structure functionality, enabling real-time securities mobility in the repo market at scale.
Bringing efficiency to the $10T global bilateral repo market
Greg Zielinski, Chief Operating Officer, Société Générale Americas, said: “We are excited to leverage the operational efficiencies, benefit from real time visibility and have access to enhanced liquidity that Broadridge’s distributed ledger repo platform provides. This partnership with Broadridge reinforces Société Générale’s overall strategy by leveraging blockchain technology to reduce and improve efficiency in the financial markets – particularly the $10T global bilateral repo market.”
Vijay Mayadas, President of Capital Markets at Broadridge, commented: “Société Générale is an innovator in capital markets, and we’re excited to welcome them onto to this award winning DLR platform. Broadridge continues to drive the transformation of repo market infrastructure with the distributed ledger technology repo platform via the utilization of smart contracts to digitize the trade agreement between counterparties and leveraging digitized assets to reduce settlement cycles.”
Last year, UBS joined Broadridge’s DLR platform as an early participant and to obtain immediate benefits of reduced risk and operational costs as well as enhanced liquidity.
Market participants can agree, execute and settle repo transactions with DLR, which digital repo approach allows collateral to be detached from the trade agreement, while the cash remains off-chain.
DLR allows for the immobilization of the underlying securities in the repo transactions while transferring ownership via smart contracts executed on the platform. Not only does the platform’s functionality significantly reduces the operating cost and risk of all repo activity, but also enhances liquidity.
Broadridge also enhanced its Private Market Hub with the blockchain technology from Amazon Web Services (AWS). Private Market Hub reduces friction for fund managers, investors, and administrators, and allows for easier auditability. The enhancements were enabled by blockchain technology, which streamlines traditionally disconnected and inefficient processes and facilitates visibility and trust.
