Today Broadridge announced the latest progress on the rollout of its Distributed Ledger Repo (DLR) platform, which already racks up a $1 trillion in monthly trades. Trading firm DRW, Societe Generale and an un-named Tier 1 bank have executed intraday repo transactions on DLR. Last month UBS executed the first intraday repo transaction with an Asian bank.
Repurchase agreements (repos) involve the sale of a bond, often a Treasury, and a repurchase at a later date. The net effect is similar to taking out a loan. It’s used as a liquidity management tool.
“Intraday repo allows us added flexibility to manage liquidity and help maximize use of capital, which was previously limited by technological barriers,” said Mark Wendland, COO at DRW.
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