Broadridge has launched its distributed ledger repo (DLR) platform, which provides a single platform where market participants can agree, execute and settle repo transactions.
The fintech firm announced the successful go-live of the DLR platform today and the company promises platform participants the benefits of reduced risk, operational costs and enhanced liquidity. In its first week since launch, DLR has executed $25 billion in average daily volume.
DLR allows for the immobilisation of the underlying securities in repo transactions, while transferring ownership via smart contracts executed on the platform.
Broadridge says the platform significantly reduces the operating cost and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and an intracompany basis, while reducing counterparty risk and increasing auditability.
Built on Broadridge’s fixed income trade processing platform, the DLR solution leverages Daml smart contracts from Digital Asset as well as VMware Blockchain, a scalable distributed ledger platform. DLR provides a secure record of repo trade details, reducing the need for reconciliation and removing obstacles to straight-through-processing.
Aite Group senior analyst Vinod Jain says: “By coupling emerging technologies like distributed ledger technology and smart contracts with existing operational account structure functionality, Broadridge has enabled real-time securities mobility in the repo market. This is a powerful value proposition for firms, especially those looking to reduce risk and enhance operational efficiencies.”
