Broadridge Financial Solutions, an American-based investment banking company, announced the successful go-live of its transformative distributed ledger repo (DLR) platform.

DLR provides a single platform where market participants can agree, execute and settle repo transactions.

Furthermore, DLR allows for the immobilisation of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform.

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 an intracompany basis and also reduces counterparty risk while increasing auditability.

Leveraging Broadridge’s leading fixed income trade processing platform, DLR utilises Daml smart contracts from Digital Asset as well as VMware Blockchain, a highly scalable distributed ledger platform.

According to Broadridge, DLR has executed $31 billion in average daily volume in the first week since launch.

Early participants of the blockchain-enabled platform are realising significant and immediate benefits of reduced risk, operational costs and enhanced liquidity, while also accelerating their digitisation journey.

The launch builds on the success of multiple pilots with sell-side and buy-side firms.

“This is the first step in the transformation of the $10T global bilateral repo market using smart contracts and distributed ledger technology. Co-innovating with market participants, we are able to bring solutions to our network of clients that create the next level of operational efficiencies.

 

Within the repo market, distributed ledger technology and smart contracts have shown that they can play an instrumental role in driving efficiencies, reducing risk and enhancing liquidity while leveraging the existing legal and account frameworks.”

said Vijay Mayadas, President of Capital Markets at Broadridge.

Featured image credit: Edited from Unsplash