Broadridge Financial Solutions has launched its international Affiliate Matching and Settlement solution.
The solution enables firms to clear and settle cross-border trades within their own organization's infrastructure, allowing them to significantly increase the operational efficiency of their cross-border flows, consolidate their agent bank or central securities depository (CSD) relationships, and reduce their settlement and messaging costs per trade.
The platform, which is live with two clients, removes the need for firms to have their own settlement mechanism in every market, reducing counterparty, custodial and operational risk, and the costs associated with cross-border flows as well as boosting efficiencies.
Implementation of the solutions can take as little as two months. Available as a hosted solution or onsite, it gives firms control of their cross-border processing and enables the consolidation of external agent bank relationships and accounts.
A reduction of custodial relationships also helps to minimize risk exposure, and users can also expect to see a reduction in network management overheads and external messaging fees.
Robin Kneale, head of strategy and product management, securities processing solutions international at Broadridge, says as demand for international portfolios grows, affiliate matching and settlement has the potential to overcome the inefficiencies associated with the traditional multi-entity approach.
In order to help clients understand the concept, Broadridge has produced a white paper, Cleared for Globalisation - Time to Rationalise with Affiliate Matching & Settlement, which looks at how firms can centralize settlement and clearing as cross-border processing volumes for securities and other asset classes continue to increase. The white paper can be accessed via www.broadridge.com/affiliate.
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