Broadrige will provide an integrated service to support fixed-income and repurchase agreement processing, as well as international clearance and settlement and investor communications services. The move is intended to help BBVA expand its product offering and enhance its trade processing and risk controls. It could also lead to cost savings.
Broadridge already supports reconciliations processing of equities, cash and exchange-traded derivatives for BBVA, a service it has provided since 2013.
Ramon Martinez Sobrado, head of corporate and investment banking global operations at BBVA Group, said: "As the fixed income market evolves, new technology and operating models will play an increasingly vital role for our business.”
He added: “The strategy to move to Broadridge’s Managed Service model enables BBVA to leverage significant scale and cost efficiencies to gain competitive differentiation for our US institutional fixed income business. The expanded relationship with Broadridge is part of our strategy to deliver superior services to our clients while enhancing our core technologies and efficiencies.”
It is estimated that Broadridge technology supports post-trade processing for 60 percent of all US fixed-income trading volumes, including 16 of the 22 primary US dealers. Its Managed Service offering handles about 16 percent of all US institutional fixed-income volumes – a figure that has doubled in the last year.