Broadridge completes blockchain pilot for repo trades

Pilot will improve efficiency and reduce risks in repo trading.

By John Bakie

Broadridge Financial Solutions has completed a blockchain pilot for repo agreements which it said will enhance operational efficiency and auditability.

The pilot was completed in cooperation with Natixis and Societe Generale and uses distributed ledger technology to reduce operational risk by providing secure records of repo trade details.

Broadridge said this will reduce the need for reconciliation and remove obstacles to straight-through processing.

The service will automate end-to-end processes to streamline repo agreement and confirmation, giving faster and more accurate collateral substitution.

Bijay Mayadas, president of global fixed income and analytics at Broadridge, 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.”