- Gains Three New Fixed Income Clients -
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--
Broadridge Financial Solutions, Inc. (NYSE: BR) today announced it has
substantially enhanced the fixed income and financing functionality of
its leading multi-asset trade processing and settlement solution, Gloss.
The platform offers users additional processing support for tri-party
repurchase agreements, auto-borrows and mortgage-backed securities as
well as new P&L methodology and a Bloomberg interface. In parallel,
Broadridge has extended its global fixed income client base for Gloss
with three new implementations.
Gloss’ new functionality will further increase users’ operational
efficiency, and includes:
- Tri-party repurchase agreements (repos): Gloss creates SWIFT
MT527 messages for deal initiation and closing, the receipt of the
related MT558 status messages, and the receipt of MT54n messages that
carry information about the collateral assigned. It also supports the
representation of these movements as transactions and as entries in
the books and records of the broker.
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New Auto-borrows functionality supports the receipt of reports,
in particular the RP31 report from Euroclear, on a schedule defined by
the client. It automatically represents these movements as
transactions and as entries in the books and records of the broker,
both as a record against the depot and as sub-balances for
auto-borrows/loans. This will enable brokerages to improve control of
depot balances and benefit from a more straightforward reconciliation.
- Mortgage-backed securities: Gloss calculates the partial
redemption proceeds when a factor is changed, and automatically
updates the book cost. It also interacts automatically with upstream
trading systems to ensure that transaction processing, instruction
messaging, booking and accounting entries are made in a controlled way.
- P&L methodology: To ensure a consistent profit and loss
methodology can be used across the widest range of financial products,
Gloss supports the value dated constant yield accretion methodology
with FIFO trade matching. Yield prices can be calculated from clean
prices using either the Monaco formula or the RBA/RBNZ formula for
Australia / New Zealand.
- Bloomberg: The market interface between Bloomberg and Gloss has
been extended to handle principal outright trades, repos, prices and
fixed income instruments from Bloomberg into Gloss.
Large-scale issuance of debt has stimulated banks’ desires to trade
globally in fixed income products. Broadridge has worked with three
investment banks to help them quickly launch or extend their global
fixed income businesses in Europe and Asia Pacific in less than six
months, with one of the operations going live in under three months. A
number of other clients are also in the process of rolling out the Gloss
solution this year.
“We are very pleased to be supporting the ambitions of our clients and
responding to the evolving requirements of the brokerage community as
they seek to rapidly launch or extend their businesses in new areas and
geographies. We have been particularly pleased to help clients get these
complex businesses up and running in less than six months from start to
go-live,” said Robin Kneale, Head of Strategy & Product Management,
Securities Processing Solutions International, Broadridge. “This should
be seen as another element of our ongoing roll-out of in-depth
multi-asset capabilities which deliver increased efficiency and
automation to our users’ trade processing and settlement operations,”
Mr. Kneale added.
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.