Switzerland-based investment bank UBS, alongside a global Asian bank, has executed the first cross-border intraday repo transaction on Broadridge’s blockchain-enabled Distributed Ledger Repo (DLR) platform.
The intraday trade marks the launch of the next phase in the rollout of Broadridge’s DLR platform, which was first released in June 2021.
DLR is designed to provide a utility where market participants can agree, execute and settle repo transactions, providing flexible settlement cycles based on a counterparts’ needs.
Broadridge’s platform aims to increase settlement velocity and collateral mobility, therefore making intraday settlement possible. The platform also reduces the operating cost and risk of all repo activity, including overnight and term repos, says Broadridge.
Continuing to build on the initial success of the platform and leveraging the growing expansion of the network across the global repo community, Broadridge says that the announcement is a major step forward to providing a more efficient means of intraday liquidity management.
The firm indicates that the global expansion of the platform across sell- and buy-side firms enables a network effect of increased benefits and additional transaction types.
Broadridge aims to bring the benefits of distributed ledger capabilities to transform the global repo market. The firm reports that it has captured US$1 trillion in monthly volume.
UBS group treasurer Beatriz Martin comments: “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.”
Horacio Barakat, head of digital innovation at Broadridge, adds: “This is the next step in executing on 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.”
