Monday, 22 April 2024

UBS executes first cross-border intraday repo trade on Broadridge distributed ledger repo platform

5 min read

Broadridge Financial Solutions announced that UBS and a global Asian bank have successfully executed the first cross-border intraday repo transaction on Broadridge’s blockchain-enabled distributed ledger repo (DLR) platform.

This groundbreaking intraday trade marks the launch of the next phase in the rollout of Broadridge’s DLR platform. Continuing to build on the initial success of the platform and leveraging the growing expansion of the network across the global repo community is a major step forward to providing a more efficient means of intraday liquidity management.

Beatriz Martin, treasurer of UBS Group said, “Intraday repo is a valuable tool to manage our liquidity usage and provides flexibility in our funding capabilities with reduced operational risk".

“This accomplishment builds on the foundation we have established as an early adopter of the distributed ledger platform,” Martin said.

The global expansion of the platform across both sell-side and buy-side firms enables a network effect of increased benefits and additional transaction types. Broadridge is bringing the benefits of distributed ledger capabilities to transform the global repo market, capturing $1 trillion in monthly volume.

Horacio Barakat, head of digital innovation at Broadridge said, “This is the next step in executing our vision of transforming global repo market infrastructure".

“We are empowering leading financial institutions like UBS with the ability to dramatically lower risk and operating costs and see enhanced liquidity,” Barakat added.

This platform provides a utility where market participants can agree, execute and settle repo transactions, providing flexible settlement cycles based on counterparts’ needs. The DLT Repo platform significantly increases settlement velocity and collateral mobility, thus making intraday possible. The platform also reduces the operating cost and risk of all repo activity, including well as overnight and term repos.

Re-disseminated by The Asian Banker

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