Broadridge onboards UBS onto distributed ledger repo platform
09 August 2021 US
Image: JHVEPhoto/stock.adobe.com
Broadridge announces that Swiss investment bank UBS has joined the company鈥檚 distributed ledger repo (DLR) platform, following its launch in June.
The addition of UBS aids the expansion of the DLR network, leveraging Broadridge鈥檚 fixed income platform that processes over US$6 trillion in average daily volume and includes 20 of the 24 primary dealers.
DLR provides a single platform where market participants agree, execute and settle repo transactions. Under a digital repo approach, collateral can be detached from the trade agreement, while the cash remains off-chain.
Paul Chiappetta, Americas COO of group treasury at UBS says: 鈥淭his partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.鈥�
Vijay Mayadas, president of capital markets at Broadridge, adds: 鈥淚n the first weeks since the launch, DLR has executed US$35 billion in average daily volume, a testament to the platform, which we expect to continue to grow as additional clients join the platform."
DLR allows for the immobilisation of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. The platform鈥檚 functionality was created to reduce the operating cost and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and intracompany basis and reduces counterparty risk while increasing ease of audit.
The addition of UBS aids the expansion of the DLR network, leveraging Broadridge鈥檚 fixed income platform that processes over US$6 trillion in average daily volume and includes 20 of the 24 primary dealers.
DLR provides a single platform where market participants agree, execute and settle repo transactions. Under a digital repo approach, collateral can be detached from the trade agreement, while the cash remains off-chain.
Paul Chiappetta, Americas COO of group treasury at UBS says: 鈥淭his partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.鈥�
Vijay Mayadas, president of capital markets at Broadridge, adds: 鈥淚n the first weeks since the launch, DLR has executed US$35 billion in average daily volume, a testament to the platform, which we expect to continue to grow as additional clients join the platform."
DLR allows for the immobilisation of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. The platform鈥檚 functionality was created to reduce the operating cost and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and intracompany basis and reduces counterparty risk while increasing ease of audit.
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