Broadridge Financial Solutions has brought Swiss Bank UBS to its blockchain-based repurchase agreement (repo) platform.
Global fintech leader Broadridge announced that UBS, a global financial service firm has now joined its distributed ledger repo (DLR) platform.
Repos are a form of secured short-term financing to sell securities and then repurchase government-backed securities slightly higher.
Broadridge global fintech leader that provides technological solutions for banks, mutual funds and other corporate issuers. Their DLR platform allows banks and other market participants to execute and settle repo transactions by using smart contracts. The participants 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 the Broadridge’s distributed ledger repo platform provides,” Paul Chiappetta, director and chief operating officer of the repo at UBS, said in a press release. “This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”
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Broadridge processes more than $6 trillion in average daily volume (ADV) on its fixed income platform. It includes 20 out of 24 primary dealers. With a blockchain-based platform, the company aims 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.”
