HSBC adopts Broadridge's DLT platform for repo trades

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HSBC adopts Broadridge's DLT platform for repo trades

NEW YORK - HSBC has recently integrated Broadridge Financial Solutions (NYSE: BR )' Distributed Ledger Repo (DLR) platform into its operations, marking a significant step in the bank's efforts to enhance process efficiency and reduce settlement costs in its trading activities. The move comes as the latest development since the fintech giant, Broadridge, launched the DLT-enabled platform in early October 2023.

The adoption of Broadridge's DLR technology by HSBC is poised to transform the bank's existing sponsored repo trade flow. John Farrell from HSBC expressed optimism regarding the integration, anticipating that it would lead to notable efficiencies and lower settlement costs. This sentiment aligns with the initial purpose of the DLR platform, which aims to provide clients like banks, broker-dealers, asset managers, and public companies with a significant reduction in settlement costs and operational risks while streamlining processes.

Broadridge's innovative platform has been designed to revolutionize the global repo market infrastructure, offering a global communications hub that supports the daily trading of more than $10 trillion of equities, fixed income, and other securities worldwide. As of November 2023, the DLR platform has already been capturing a monthly volume of $1 trillion in the global repo market.

Horacio Barakat from Broadridge highlighted the transformative potential of DLR technology in reshaping market infrastructure. The fintech leader, which is part of the S&P 500® Index and boasts over $6 billion in revenues, continues to expand its reach across sell-side and buy-side firms with this platform.

HSBC's decision to leverage Broadridge's DLR solution underscores the growing trend among financial institutions to adopt distributed ledger capabilities to achieve enhanced scalability and efficiency. HSBC operates Wealth Centers in various locations and offers deposit products through its subsidiary HSBC Bank USA, N.A., Member FDIC. Broadridge employs over 14,000 associates across 21 countries and remains at the forefront of employing distributed ledger technology in financial markets.

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