Waters Rankings 2022: Best distributed-ledger technology provider—Broadridge Financial Solutions
Overview
Broadridge’s Distributed Ledger Repo (DLR) blockchain-enabled platform is transforming the $10 trillion global repo market and empowering participants to realize the benefits of reduced risk and operational costs, and increased collateral liquidity. DLR provides a single platform where participants can execute and manage all repo transactions, allowing for the creation of mutualized workflows between counterparts and front-to-back digitization from matching to settlement of transactions.
“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 Societe Generale’s overall strategy by leveraging blockchain technology to improve efficiency in the financial markets, particularly the $10 trillion global bilateral repo market.”
Greg Zielinski, COO, Societe Generale Americas
The Solution
The DLR platform uses smart contract technology to automate and manage the complex multi-party repo processes, ensuring synchronization between counterparts through the repo lifecycle, thus eliminating the potential for fails and the need for reconciliation. DLR’s tokenization of collateral allows for the digitization of settlement, optimizing its timing, based on the agreement between counterparts.
Secret Sauce
The DLR platform is transforming and digitizing the global repo markets, while leveraging existing market infrastructure. It provides significant benefits without the need to replace existing technology stacks or depository location of collateral. Built on Broadridge’s fixed-income platform that processes over $8 trillion per day, 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.
Recent Milestones
Over the past 12 months, Broadridge has witnessed the rapid expansion of network participants as well as increased interest in joining the DLR platform. It continues to expand the types of trades that can be executed on the platform, including intra-day repos, sponsored repos and multi-collateral bilateral repos.
“The launch of DLR is the first step in transforming the $10 trillion global outstanding bilateral repo market using smart contracts and distributed ledger technology. In the repo market, our platform has shown that distributed-ledger technology and smart contracts can play an instrumental role in driving efficiencies, reducing risk and enhancing liquidity, while leveraging the existing legal and account frameworks.”
Horacio Barakat, head of digital innovation for capital markets, Broadridge Financial Solutions
Future Objectives
Broadridge’s focus remains centered on the continuous expansion of the network via added layers of functionality that create additional value for both sell-side and buy-side clients. It plans to expand DLR into other areas of securities financing via the utilization of it smart contract and tokenization technology.
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