Broadridge expands its Global Proxy solution

Direct Market Solutions expands to cover 50% of global meetings, improves market voting deadlines and lowers costs to custodians, says Broadridge.

By Wesley Bray

Broadridge Financial Solutions has expanded its Direct Market Solutions (DMS), its local market golden copy event sourcing and vote execution service extension to its Global Proxy solution.

The innovation in DMS services includes the growth in coverage to 20 key markets in 2021, representing the majority of client holdings and about 50% of global meetings. More markets are expected to follow in 2022 and 2023.

This innovation complements Broadridge’s existing voting solutions that already provide 100% coverage across over 100 markets.

Market deadlines have improved and voting windows have been extended by up to three days, giving investors more time to make their elections.

The expansion of DMS services also reduces costs to custodians because of Broadridge’s ability to mutualise event sourcing and execution across the industry, and pass those savings to participating clients.

Where required, DMS allows issuer market golden copy meeting information to be communicated to investors on the day of the meeting announcement.

Voting windows are extended by up to three days for investors by removing market inefficiencies in the traditional voting process, enabling votes to be placed directly from the investor to the issuer or its agent in these markets.

“Today’s announcement is part of our ongoing innovation to enable higher standards of corporate governance and investor stewardship. Broadridge has long advocated and invested in more efficient and innovative local market models through its DMS service launched in 2015,” said Demi Derem, GM, international investor communication solutions at Broadridge.

“Shareholder Rights Directive II (SRD II) obligated European issuers to provide the market with “golden copy” machine readable issuer meeting information. Since SRD II was put into effect in September 2020, we have completed over 300 new retail and institutional client implementations and processed over 89,000 meetings for clients that trust in our global proxy credentials and ability to continually drive the market forward for the benefit of all participants.”

Last month, Broadridge announced the acquisition of FIX-based post-trade solutions provider Alpha Omega, its latest expansive move as it looks to provide a greater depth of post-trade messaging technology solutions.

Through the acquisition, Broadridge will be able to fully consolidate Alpha Omega’s post-trade matching and consolidation solution into its existing NYFIX connective and FIX infrastructure.