UBS Joins Broadridge DLR Platform
Posted by Colin Lambert. Last updated: August 10, 2021
UBS has joined Broadridge Financial Solutions’ distributed ledger repo (DLR) platform, which allows market participants to 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. Furthermore, Broadridge says DLR allows for the immobilisation of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform. It adds the platform’s functionality significantly reduces 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 auditability.
“We look forward to the enhanced liquidity and reduction of risk that Broadridge’s distributed ledger repo platform provides,” says Paul Chiappetta, Americas chief operating officer of group treasury at UBS. “This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”
Vijay Mayadas, president of capital markets at Broadridge, adds, “In the first weeks since launch, DLR has executed $35B in average daily volume – a testament to the success of the platform, which we expect to continue to grow as additional clients join the platform.”