According to a press release published on 14 June, Broadridge’s distributed ledger repo (DLR) platform will provide market participants with a one-stop shop where they can agree, execute, and settle repo transactions. The platform will also enable users to immobilize the underlying securities in repo transactions and transfer ownership over securities through smart contracts.
Broadridge’s DLR has recorded $31 billion in average daily volume since it launched last week. Vijay Mayadas, the President of Capital Markets at Broadridge, said that the launch of DLR was the first step in the transformation of the $10 trillion global bilateral repo market.
“Within the repo market, distributed ledger technology and smart contracts have shown that they can play an instrumental role in driving efficiencies, reducing risk, and enhancing liquidity while leveraging the existing legal and account frameworks,” he explained in the release.
The platform utilizes Daml smart contracts from Digital Asset and VMware Blockchain to reduce risk and settlement costs for repurchase agreements (repo). This is done by providing a secure record of repo trade details, reducing the need for reconciliation, and removing obstacles during transaction processing. The fact that the platform is based on a highly scalable blockchain means that counterparty risk is drastically reduced—all of the transactions conducted through the platform are easily auditable.
Broadridge Financial Solutions is a global fintech company that provides infrastructure solutions to banks, broker-dealers, asset managers, and public companies. The company’s technology and operations platform underpin the daily trading of over $10 trillion worth of equities, fixed income, and other securities around the world.