UBS & Broadridge Conduct Inaugural Intraday Cross-Border DLT Repo Trade
(10 April 2023 – United States) UBS and an unnamed Asian bank have successfully executed the first cross-border intraday repurchase agreement (repo) transaction on Broadridge's distributed ledger technology (DLT) enabled platform.
The global expansion of the platform across sell-side and buy-side enterprises enables a network effect of increased benefits and additional transaction types. The trade launches the next phase in the rollout of Broadridge’s Distributed Ledger Repo (DLR) platform, which aims to provide a more efficient means of intraday liquidity management. Broadridge is a leader in bringing the benefits of distributed ledger capabilities to transform the global repo market, capturing US$1 trillion dollars in monthly volume.
The 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 making intraday possible and reducing the operating cost and risk of all repo activity, including overnight and term repos.
"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” stated UBS Group Treasurer, Beatriz Martin.
“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” commented Broadridge Head of Digital Innovation, Horacio Barakat.
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