Sell-Side Technology Awards 2025: Best distributed-ledger technology—Broadridge Financial Solutions

Overview

With volumes now over $1.5 trillion monthly, the Distributed Ledger Repo (DLR) is designed to integrate distributed-ledger technology with existing front- and back-office systems to streamline and simplify all functions. Instead of physically transferring collateral, the underlying security is immobilized with ownership maintained through smart contracts utilizing a digital representation of collateral. DLR is transforming global repo market infrastructure, improving collateral availability, enhancing liquidity management, and reducing financing costs and operational risk.

The solution  

• DLR provides a single platform where market participants can agree, execute and settle repo transactions
• The platform’s functionality reduces operating costs and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and an intracompany basis.
• Broadridge’s blockchain platform enables a shared source of truth and provides privacy, integrity, and authentication, delivering the performance, monitoring, and support essential to normal functioning repo markets.

Secret sauce  

• The DLR platform supports the automation of complex, multiparty processes via mutualized workflows between counterparties, resulting in risk reduction and increased operational efficiencies.
• It operates through a common data model shared between participants, eliminating the need for reconciliation and reducing trade failures.
• Digitization of collateral allows for increased mobility of collateral, resulting in increased liquidity.

Recent milestones

• Tier-one Canadian bank implemented DLR for treasury securities management
• Participated in regulated settlement network proof-of-concept with cross-network intraday repo agreement settlement use-case
• JPM Coin can be used for on-chain settlement for DLR. Synchronizing the two blockchain networks will enable delivery versus payment for intraday repo.
• Began working with DTCC’s subsidiary, the Depository Trust Company; Tradeweb; GLMX; and CME Group’s BrokerTec Quote, completing the ecosystem for DLT-enabled intraday repo

Future objectives

Broadridge plans to:

• Expand bilateral use-cases and build the ecosystem for intraday repo transactions
• Continue to streamline the sponsored repo process and help firms comply with upcoming US Treasury rules in a more cost-efficient flow
• Continue to advance tokenization efforts in addition to current tokenization of treasuries, enhancing operational efficiency and creating new opportunities for seamless transactions
• Achieve interoperability between platforms and with existing market infrastructure

Why they won

Broadridge follows up its success in last year’s Sell-Side Technology Awards where it walked away with two categories―best outsourcing provider to the sell side and best distributed-ledger technology category―by winning the latter category again this year, thanks to its Distributed Ledger Repo (DLR) platform. 

There was a time when many in the industry viewed DLT as a solution looking for a problem, although now there are tried-and-tested use-cases across the industry that make full use of the underlying technology to solve real-world problems. Broadridge’s DLR platform, initially launched in June 2021, perfectly illustrates this point as it supports the development of the repo industry in a way that would have been unthinkable before its introduction. 

The platform’s really smart attributes are that it that it allows users to agree, execute and settle repo transactions on a single ledger using smart contracts, while simultaneously increasing transparency/auditability around repo transactions and eliminating settlement risk. These awards seek to identify and reward innovation across the sell side, which is why Broadridge has yet again emerged on top in this increasingly competitive category.