Broadridge Financial Solutions has launched an international affiliate matching and settlement solution. The solution, which uses the same technology as Broadridge’s 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 central securities depository (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 and 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 that are looking for lower-cost entry options into growth markets such as Asia.
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 that has implemented the solution to allow investors outside of Japan access to the Japanese equities market. The second, a large US institution, has implemented the solution for cross-border affiliate clearing in London, in order to facilitate its Asian expansion plans.
“The launch of our international affiliate matching and 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 and 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.”
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