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Sahaj Sharma
Aug 10, 2021
by Sahaj Sharma

Broadridge Announces Amalgamation with UBS Bank and Joining with DLR

Broadridge UBS DLR
Broadridge Financial Solutions, Inc. the global fintech leader made an announcement today that the largest private bank in the world, UBS Bank has now joined its distributed ledger repo (DLR) platform. The DLR platform of Broadridge allows the banks and other participants in the market to execute and settle repo dealings by using smart contracts.

UBS Bank Joins DLR Platform of Broadridge Financial Solutions

Broadridge Financial Solutions is a corporate services firm and a fintech leader recognized globally that provides banks, mutual funds, and other financial institutions with technological solutions. 

As for these smart contracts, they transfer the ownership of securities between the buyers and lenders and record the transactions on a distributed ledger. In turn, this declines the operating costs along with reducing the counterparty risk of all repo activity, compared to traditional methods.

Paul Chiappetta, America's chief operating officer of Group Treasury at UBS AG, laid an emphasis on the perks of DLR and said:

“We look forward to the enhanced liquidity and reduction of risk that Broadridge’s distributed ledger repo platform provides (…)This partnership reinforces our overall digital strategy, leveraging new technologies aimed at reducing risk and improving efficiencies in the financial markets.”

More About the Repurchase Agreement (Repo)

Repo stands for Repurchase Agreement and it is a short-term agreement to sell, and then reacquire securities that are powered by the government at a slightly higher price. This is nothing but effectively a short-term loan.

As for these agreements, they involve banks, which are required to maintain a certain amount of lucidity during the overnight hours.

The President of Capital Markets at Broadridge, Vijay Mayadas revealed that he knows that UBS is going to be benefitted from the ability to exchange repos using their DLR (distributed ledger technology). This will be bringing enhanced liquidity, a decline in the overall risk, and efficiency in carrying out operations.

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Broadridge Financial Solutions DLR UBS Bank Paul Chiappetta. Repurchase Agreement Vijay Mayadas
Broadridge Announces Amalgamation with UBS Bank and Joining with DLR
Sahaj Sharma
Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.

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