Broadridge launched its distributed ledger repo (DLR) platform more than two years ago, and UBS was one of the first clients to sign up in 2021. Now Broadridge has added an additional blockchain service to DLR, sponsored repo, which UBS is also using.
Last year we reported that DLR was processing around $1 trillion per month in trades. That’s still small compared to Broadridge’s broader fixed income platform that processes more than $6 trillion daily. Broadridge’s DLR brings efficiency to the repo process and also supports intraday repo trading. Most of the big bank clients use it for trading within the group.
Sponsored repo refers to the ability to centrally clear securities through the FICC, the U.S. central counterparty. Sponsored clearing allows sponsoring members to let their clients use FICC clearing. That avoids every organization that wants to centrally clear needing to comply with all the requirements of becoming a member.
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