Solution Boosts Operational Efficiencies and Reduces Costs Associated
with Cross-Border Trading
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--
Broadridge Financial Solutions, Inc. (NYSE:BR) today announced the
launch of its unique international Affiliate Matching & Settlement
solution. The solution, which utilises the same technology as
Broadridge's leading international trade processing and settlement
solution, Gloss, enables firms to clear and settle cross-border trades
within their own organisation's infrastructure allowing firms to
significantly increase the operational efficiency of their cross-border
flows, consolidate their agent bank or CSD relationships, and reduce
their settlement and messaging costs per trade.
In order to help clients understand the concept, and in conjunction with
global business and technology consulting firm Investance, Broadridge
has produced a white paper entitled 'Cleared for Globalisation - Time to
Rationalise with Affiliate Matching & Settlement', which looks at how
firms can centralise settlement and clearing as cross-border processing
volumes for securities and other asset classes continue to increase. It
is particularly targeted at firms looking to rationalise existing
complex cross-border trade flows, or for firms which are looking for
lower-cost entry options into growth markets such as Asia. The white
paper can be accessed via www.broadridge.com/affiliate.
Available now, and live with two clients, the platform removes the need
for firms to have their own settlement mechanism in every market,
reducing counterparty, custodial and operational risk, and the costs
associated with cross-border flows as well as boosting efficiencies. One
client is a top-tier Japanese firm which has implemented the solution to
allow investors outside of Japan access to the Japanese equities market.
The second, a large US institution, has this year implemented the
solution for cross-border affiliate clearing in London, in order to
facilitate its Asian expansion plans.
Implementation of these solutions can take as little as two months.
Available as a hosted solution or onsite, it gives firms control of
their cross-border processing and enables the consolidation of external
agent bank relationships and accounts. A reduction of custodial
relationships also helps to minimise risk exposure, and users can also
expect to see a sizeable reduction in network management overheads and
external messaging fees. The Affiliate Matching & Settlement solution
can be implemented alongside a firm's existing back office solution or
as part of Broadridge's industry-leading settlement solution which, in
conjunction with the Affiliate Matching & Settlement solution, delivers
the highest levels in operational efficiency and timely processing.
"The launch of our international Affiliate Matching & Settlement
solution is part of the Broadridge strategy to continue increasing our
global reach. We are already seeing a lot of interest from banks and
brokers with two clients live on the solution today," said Robin Kneale,
Head of Strategy & Product Management, Securities Processing Solutions
International, Broadridge. "As demand for international portfolios
grows, affiliate matching and settlement has the potential to overcome
the inefficiencies associated with the traditional multi-entity
approach. Our technology solution offers firms a centralised, rational
matching and settlement model and an ability to enter new markets
quickly to compete in the growing cross-border arena," Dr. Kneale added.
Jonathan Purchase, Senior Manager at Investance, said: "A key finding of
this study is that significant savings can be made in equity and fixed
income cross-border post-trade processing at most investment banks.
Centralising clearing and settlement by adopting affiliate matching and
settlement provides a cost-effective and scalable solution that will
also address the expected future growth in volume from existing clients
and expansion into new markets. This is definitely an option that should
be on the agenda when considering post-trade strategies at international
institutions."
About Broadridge
Broadridge is a technology services company focused on global capital
markets. Broadridge is the market leader enabling secure and accurate
processing of information for communications and securities transactions
among issuers, investors and financial intermediaries. Broadridge builds
the infrastructure that underpins proxy services for over 90% of public
companies and mutual funds in North America; processes more than $3
trillion in fixed income and equity trades per day; and saves companies
billions annually through its technology solutions. For more information
about Broadridge, please visit www.broadridge.com.
Source: Broadridge Financial Solutions, Inc.