UBS goes live on Broadridge’s New Distributed Ledger Sponsored Repo Solution

This announcement from Broadridge Financial Solutions, Inc. highlights that UBS has successfully implemented a sponsored repo solution on Broadridge’s Distributed Ledger Repo (DLR) platform. Here are the key points from this announcement:

1. Sponsored Repo Solution: Broadridge has launched a sponsored repo solution on its DLR platform. This solution allows financial institutions to digitize their existing sponsored repo trade flows, reducing operational risks and settlement costs.
2. DLR Platform: The DLR platform is built on distributed ledger technology (DLT) and incorporates smart contracts. It aims to provide significant benefits to clients in terms of efficiency, cost reduction, and risk mitigation.
3. UBS Implementation: UBS, a global financial institution, has gone live with this sponsored repo solution on Broadridge’s DLR platform. Christian Rasmussen, Head of Investment and Execution at UBS, mentioned that this move will increase efficiencies, reduce the risk of trade failures, and lower settlement costs.
4. Transformation of Global Repo Market: Broadridge’s DLR platform is part of a broader effort to transform the global repo market infrastructure. The platform is designed to simplify processes, increase scalability, and leverage the advantages of distributed ledger technology.
5. Network Expansion: The DLR platform is being expanded to include both sell-side and buy-side firms. This expansion is expected to create a network effect, increasing the benefits and supporting various types of transactions.
6. Industry Leadership: Broadridge is positioned as a leader in using DLT to enhance the global repo market. The platform reportedly handles a substantial monthly volume of $1 trillion, showcasing its significance in the financial industry.

In summary, the implementation of Broadridge’s sponsored repo solution by UBS demonstrates the increasing adoption of distributed ledger technology in the financial sector, with an emphasis on streamlining processes, reducing costs, and minimizing operational risks in the repo market.