UBS and a global Asian bank have successfully executed the first cross-border intraday repo transaction on Broadridge Financial Solutions’ blockchain-enabled Distributed Ledger Repo (DLR) platform.
The trade effectively launches the next phase in the rollout of Broadridge’s DLR platform, which aims to provide a more efficient means of intraday liquidity management. “Intraday repo is a valuable tool to manage our liquidity usage and provides flexibility in our funding capabilities with reduced operational risk,” said Beatriz Martin, group treasurer, UBS.
According to Broadridge, the global expansion of the platform across both buy- and sell-side enables a network effect of increased benefits and additional transaction types. “This is the next step in executing on our vision of transforming global repo market infrastructure,” said Horacio Barakat, head of digital innovation at Broadridge. “We are empowering leading financial institutions like UBS with the ability to dramatically lower risk and operating costs and see enhanced liquidity.”
The DLR platform provides a utility where market participants can agree, execute, and settle repo transactions, providing flexible settlement cycles based on counterparts’ needs. It increases settlement velocity and collateral mobility, thus making intraday repo possible.