UBS joins Broadridge blockchain repo platform to enhance liquidity
DLR’s digital repo approach allows collateral to be detached from the trade agreement, while the cash remains off-chain.
UBS has joined Broadridge Financial Solutions’ distributed ledger repo (DLR) platform as early participants of the blockchain-enabled platform are accelerating their digital journey and realizing the significant and immediate benefits of reduced risk and operational costs as well as enhanced liquidity.
UBS is one of the largest market participants in the foreign exchange industry. As an early adopter of Broadridge’s platform, it will help accelerate the expansion of the DLR network, leveraging the fixed income platform that processes over $6T in average daily volume and includes 20 of the 24 primary dealers.
Paul Chiappetta, Americas Chief Operating Officer of Group Treasury at UBS AG, said: “We look forward to the enhanced liquidity and reduction of risk that Broadridge’s distributed ledger repo platform provides. This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”
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.
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.”
Broadridge has recently acquired Alpha Omega, a market-leading FIX-based post-trade solutions provider for the investment management industry.
Building on Broadridge’s recent acquisition of Itiviti, this deal encompasses the remaining 68% of Alpha Omega and will enable Broadridge to fully consolidate Alpha Omega’s post-trade matching and consolidation solution into its existing NYFIX connectivity and FIX infrastructure.
The integration should better automate buy-side and sell-side firms’ trade matching processes and further accelerates Broadridge’s product roadmap.
Alpha Omega’s advanced FIX-based technology for asset managers and broker-dealers covers automated allocation, confirmation, and affirmation of trades for equities, fixed income securities, and derivatives.
Broadridge has been aggressively acquiring businesses in order to grow and create efficiencies. Most recently, the company acquired the assets of Jordan & Jordan, a cloud-based Execution Compliance and Surveillance Service (ECS).