Broadridge is the First Service Provider to Receive Certification for
New Central Counterparty Initiative
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--
Broadridge Financial Solutions, Inc. (NYSE:BR) today announced that it
has become the first service provider to be certified as fully-compliant
by the Fixed Income Clearing Corporation (FICC), a subsidiary of The
Depository Trust & Clearing Corporation (DTCC), for implementation of
the FICC's new Central Counterparty services (CCP), scheduled to launch
in the Fall of 2009.
Over the past several years, FICC has embarked on an ambitious program
to modernize its MBS Clearing Services through the introduction of a
central counterparty operating model. According to the FICC website,
"The operation of a central counterparty is expected to revolutionize
how trades are cleared and settled in the mortgage-backed securities
market (MBS), where trading in the U.S. now surpasses $100 trillion
annually. The CCP will make trade processing easier, cheaper and less
risky."
"We are thrilled to be the first vendor to become CCP compliant. As a
leading service provider in the mortgage-backed securities industry with
products like MBS Expert, we collaborated extensively with the FICC and
more than twelve of our MBS Expert buy-side and sell-side clients to
develop the necessary tools and processes to create a seamless support
environment for CCP," said J. Michael Hopkins, General Manager,
Securities Processing Solutions, Fixed Income, Broadridge. "By
distributing the expense of implementing the necessary changes to
support the new CCP operating model across our large client base,
Broadridge is providing all of its fixed-income services clients with
the crucial benefit of preparing for this industry change without
incurring the significant expense and infrastructure overhaul that such
change would require," Mr. Hopkins added.
According to the FICC, its longer-range plans are to extend its central
counterparty services to include daily to-be-announced (TBA) netting and
novation, including the allocation of TBAs versus FICC as CCP.
Broadridge's MBS Expert is an institutional solution engineered to
handle all facets of TBA trade processing. The system's various modules
enable the user to manage the entire lifecycle of MBS Trades from trade
inception to settlement. This process includes MBS TBA trade entry, FICC
submission and exception management, TBA balancing and netting, pool
allocations and substitutions, full EPN processing, inventory
management, TBA pair offs, trade assignments, and broker give-ups. MBS
Expert also allows the clients to access the most up-to-date pool
analytics and geographical data thus enabling best economic allocation
and pool inventory decisions.
About Broadridge
Broadridge Financial Solutions, Inc., with over $2.1 billion in revenues
in fiscal year 2009 and more than 40 years of experience, is a leading
global provider of technology-based solutions to the financial services
industry. Our systems and services include investor communication,
securities processing, and clearing and outsourcing solutions. We offer
advanced, integrated systems and services that are dependable, scalable
and cost-efficient. Our systems help reduce the need for clients to make
significant capital investments in operations infrastructure, thereby
allowing them to increase their focus on core business activities. For
more information about Broadridge, please visit www.broadridge.com.
Source: Broadridge Financial Solutions, Inc.