Distributed Ledger Repo platform delivered the win for the Lake Success, NY-based data and technology specialist, thanks to its ability to dramatically increase the efficiency and transparency around repo transactions by allowing counterparties to agree, execute and settle agreements on a single, integrated platform.

Overview

• Distributed Ledger Repo (DLR) is an agnostic platform that integrates distributed-ledger technology (DLT) with firms’ existing front- and back-office systems to streamline and simplify every operation. Instead of physically transferring collateral, the underlying security is immobilised with ownership maintained through smart contracts utilising a digital representation of collateral. Now firms can mitigate operational and counterparty risk via a central repository of repo agreements and the simultaneous settlement of cash and securities.

Secret Sauce

• Broadridge’s DLR platform allows for the automation of complex, multi-party processes via mutualised workflows between trading counterparties, resulting in risk reduction and increased operational efficiencies.
• The platform operates through a shared data model between participants, eliminating the need for reconciliation and reducing the likelihood of failed trades.
• Digitisation of collateral allows for increased mobility of collateral, resulting in increased liquidity.

Recent Enhancements

• Continued expansion across the US primary dealer network, where 19 out of 25 primary dealers are Broadridge clients
• Broadridge enhanced its intercompany consolidation, which helps clients settle their activity in a more efficient manner.
• Increased liquidity and collateral mobility through digitisation of collateral and workflows, resulting in lower overall cost and operational risk