Fixed income trades debut on Broadridge’s sponsored general collateral service

Innovation in partnership with DTCC and BNY Mellon expands post-trade capabilities into new asset classes.

Broadridge Financial Solutions has completed the first fixed income trades for its sponsored General Collateral (GC) service via its post-trade processing solution in conjunction with DTCC and BNY Mellon.  

Through DTCC’s Fixed Income Clearing Corporation (FICC), the newly launched sponsored GC service will enable sponsored members to transact tri-party repo activity with their sponsoring members on a general collateral basis. 

The Broadridge functionality expands the current fixed income footprint developed for the FICC’s sponsored service which began with sponsored repo in 2018. Sponsored repo has seen strong growth across a diverse list of Broadridge clients, both globally and regionally. 

“Sponsored GC represents a fantastic opportunity to expand our post-trade capabilities into new asset classes,” said Vijay Mayadas, president of capital markets at Broadridge. “Broadridge, in conjunction with DTCC and BNY Mellon, has worked with multiple clients who seek to be first providers of GC to adapt to changes in market structure and expand their post-trade tech stacks, which helps increase liquidity and reduce balance sheet consumption.” 

Although both the sponsored Repo and sponsored GC Programs share commonalities, there are differences between the two in terms of deal initiation and settlement that may appeal to different participants.  

The sponsored GC service expands the range of instruments available under sponsored programs and will be of interest to firms that are cash providers and have holdings in MBS, which are now eligible with sponsored GC expansion. 

Other benefits of the GC initiative include expanded financing offerings by FICC members with their clients who are non-FICC members, the ability to net down balance sheet positions, and improved efficiencies with the potential for reduced costs.