Broadridge Financial Solutions has completed a blockchain technology pilot to enhance the operational efficiency and auditability of bilateral repurchase, or repo, agreements.
The pilot, conducted in partnership with Natixis and Societe Generale, utilises distributed ledger technology in order to make complex processes “more secure, transparent and efficient”.
The blockchain-enabled solution, streamlines the repo agreement and confirmation processes, limits manual interventions and reduces counterparty risk.
Vijay Mayadas, president of global fixed income and analytics at Broadridge, explained that blockchain can play an “instrumental role” in reducing operational cost and complexity within the repo market.
Mayadas said: “This latest blockchain-based initiative reflects our ongoing commitment to leading the development and implementation of innovative solutions that have the ability to make complex business processes in capital markets firms more secure, transparent and efficient.”
Jerry Friedhoff, head of Broadridge’s securities finance and collateral management group, added: “Proving the benefits of blockchain technology in the repo market lays the foundation for the development of broader collateral management solutions on blockchain.”
In April, Broadridge, J.P. Morgan, Northern Trust and Banco Santander completed a blockchain pilot, enhancing the global proxy vote transparency and analytics.
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