Broadridge announced that HSBC is the next client to successfully go live on the newly launched sponsored repo solution built on the distributed ledger technology (DLT) enabled Distributed Ledger Repo (DLR) platform.
Clients can anticipate substantial reductions in settlement costs, streamlined processes, enhanced scalability, and a marked decrease in operational risks. HSBC is the second client to go live since the launch of the sponsored repo solution in early October.
“Digitizing our existing sponsored repo trade flow and seamlessly integrating it into Broadridge’s DLR tech stack empowers us to enhance efficiencies, mitigate risks of transaction failures, and significantly lower settlement costs,” said John Farrell, Americas head of Markets Operations at HSBC, in a statement. “We are committed to exploring innovative avenues to reduce operational risks, and we believe this platform will be instrumental in achieving our objectives.”
Horacio Barakat, head of Digital Innovation at Broadridge, said in a statement: “This marks another significant milestone in our journey to revolutionize global repo market infrastructure, underscoring the immense value and transformative potential of DLR. We are equipping leading financial institutions with the capability to profoundly lower risks and operational expenses, while unlocking enhanced liquidity.”
The global expansion of the DLR platform across both sell-side and buy-side firms triggers a network effect, offering amplified benefits and enabling a broader range of transaction types. Broadridge continues to lead the charge in utilizing distributed ledger capabilities to revolutionize the global repo market, with monthly volume capturing $1 trillion dollars.