UBS Uses Blockchain Platform to Settle Cross-Border Intraday Trade
Broadridge Financial Solutions, which offers financial technology services worldwide, has reported that a global Asian bank and UBS have successfully conducted an intraday cross-border repo transaction on its blockchain-based platform. The initiation of this intraday transaction indicates the start of the following stage of Broadridge’s implementation of the Distributed Ledger Repo (DLR) platform.
The platform offers a tool for individuals involved in the market to agree upon, carry out, and settle repo transactions, with adaptable settlement periods that align with the needs of their counterparts.
The DLT Repo platform enhances the speed of settlement and the mobility of collateral, thereby enabling intraday trading. Moreover, the platform decreases the cost of running and the possibility of danger in all types of repo transactions, such as overnight and term repos.
“Using intraday repo is a beneficial tool for handling our liquidity requirements and offers funding adaptability while minimizing operational risk.” According to UBS Group Treasurer, Beatriz Martin, this accomplishment is a continuation of the groundwork we laid as one of the first to embrace the Distributed Ledger platform.
Our strategy to revolutionize the infrastructure of the repo market is entering a new stage. Horacio Barakat, who is the Head of Digital Innovation at Broadridge, said that they are providing UBS and other top financial institutions with the power to decrease risk and operating expenses while also boosting liquidity.