Broadridge announced the successful completion of a pilot with Natixis and Societe Generale that leverages blockchain technology to enhance the operational efficiency and auditability of bilateral repurchase, or repo, agreements.
The pilot utilizes distributed ledger technology capabilities to reduce operational risk for market participants by providing a secure record of repo trade details, reducing the need for reconciliation and removing obstacles to straight through processing. This new blockchain-enabled solution, which automates end-to-end processes, streamlines the repo agreement and confirmation processes, offers a faster and more accurate collateral substitution process, while eliminating time-consuming manual interventions, and reduces counterparty risk while increasing auditability.
This application follows Broadridge, J.P. Morgan, Banco Santander, and Northern Trust’s recent, successful completion of a blockchain proof of concept with an issuer agent to enhance transparency in the proxy voting process. This is another example of Broadridge leveraging innovative technology to help clients and the industry get ahead of today’s challenges to capitalize on what’s next.