The new service was built on the DLT-enabled Distributed Ledger Repo platform and it leveraged the growing expansion of the network across its global repo community. The aim of the launch was to give customers and clients the possibility to benefit from significant settlement cost savings, scalability, reduction of operational risks, and process simplification and efficiency via smart contracts and distributed ledger technology.
The global expansion of the DLR platform was set to be across both sell-side and buy-side firms and companies, and it focused on enabling a network effect of increased benefits, as well as transaction and payment types. By digitising the existing sponsored repo trade flow and including trade flows in the platform, Broadridge aimed to increase efficiencies and reduce the risk of failure and fraud. At the same time, the company focused on lowering the overall settlement costs as well.
Switzerland-based investment banking company UBS had multiple partnerships and launches in the last couple of months, covering several different geographic regions around the world.
The company announced the completion of its acquisition of Credit Suisse in June 2023, with the combined entity being ready to operate as a consolidated banking group at the moment of the press release. The UBS Group AG was set to oversee two distinct parent companies, the UBS AG and the Credit Suisse AG.
Each of the two institutions aimed to continue to have its own subsidiaries and branches, as well as counterparties and customers. Moreover, the merger group was set to be overseen by the UBS Group AG's Board of Directors and Group Executive Board. The process was completed in less than three months, and it brought together two systemically significant institutions.
Earlier in April 2023, the fintech company Broadridge Financial Solutions announced that the UBS completed the first cross-border intraday repo transaction (repurchase agreement) on its distributed ledger repo tool.
The transaction process was conducted in conjunction with a global Asian bank, whose identity was not disclosed in the announcement published by Broadridge Financial Solutions. Following the news, the fintech provider was enabled to start the next phase of the process of rolling out its DLR platform. The service was designed to enable market participants to arrange, execute, and settle repo trades in a secure and efficient manner.
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