Fintech company Broadridge Financial Solutions has announced that Switzerland-based investment banking company UBS has completed the first cross-border intraday repo transaction (repurchase agreement) on its distributed ledger repo platform. This transaction was conducted in conjunction with a global Asian bank whose identity was not disclosed in the Broadridge announcement.

For the fintech provider, the transaction marks the start of the next phase of the rollout of its DLR platform. Broadridge's DLR platform enables market participants to arrange, execute and settle repo trades. It offers flexible settlement cycles tailored to the needs of counterparties.

The global spread of the platform in sell-side and buy-side companies promotes a network effect, which offers the opportunity to conduct different types of transactions. UBS's transaction in Distributed Ledger Repo gives Broadridge, a core player in the global repo market, a good reason to offer a more efficient way to manage intraday liquidity. DLR could simplify repo According to a UBS Group representative, the intraday repo is an advantageous tool for UBS.

The intraday repo aids in managing UBS’ liquidity use and gives the bank financing capacities flexibility, while at the same time reducing operational risk. The representative commented on the transaction, noting that its completion builds on the foundations that UBS is creating as an early adopter of the Broadridge platform. A Broadridge representative adds that the deal is the next step in their vision to transform the infrastructure of the global repo market.

This initiative allows financial institutions like UBS to reduce their risks and operational costs while benefiting from increased liquidity. Additionally, Broadridge's Distributed Ledger Repo Platform lowers the operational costs and risks associated with all repo activities. What is an intraday repo transaction agreement This is an agreement involving an intraday repo transaction entered into in accordance with the International Securities and Markets Association Global Master Repurchase Agreement ("ISMA Master Agreement"), in which eligible collateral is sold and repurchased on the same business day.

A repurchase agreement (repo) is a type of short-term financing for government securities dealers. In the instance of a repo, a dealer sells government securities to investors overnight and then buys them back at a slightly higher price the next day. The implied overnight interest rate is shown by the slight price difference.

Short-term capital is often raised through repos. They are also a frequent instrument used by central banks in their open market activities. .