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Innovations in Blockchain and Artificial Intelligence

How Broadridge is applying new technologies to drive benefits for our clients.

Innovations in Blockchain and Artificial Intelligence

Disruptive technologies like blockchain and artificial intelligence (AI) have the potential to transform business and we are assessing how they can be best applied to drive benefits for our clients. Our investment in the application of these technologies across startups, internal prototypes and client collaboration has positioned us to help clients accelerate adoption. This report outlines our strategy and highlights our innovations in this space so far.

Broadridge has made significant investments in blockchain and AI. We are leveraging our deep expertise in post-trade and scale across our extensive network of clients to assess where these new technologies can be applied to drive benefits for our clients.

Blockchain

Invest in leading blockchain startups
  • Invested in startups with unique blockchain engineering and capital markets expertise, including Digital Asset's focus on cash securities
  • Acquired technology assets of InveShare to accelerate development of blockchain U.S. proxy platform
  • Built relationships with leading innovators, such as Hyperledger and Enterprise Ethereum Alliance
Invest internally across a number of prototypes
  • Built blockchain lab consisting of associates spanning strategy, business and technology functions
  • Executed several prototypes, including whether blockchain can drive a "step-change" in process improvement and whether Broadridge is uniquely positioned to drive adoption to mutualise industry costs
Co-innovating with clients in specific areas
  • Engaged multiple clients in discussions on blockchain innovation in specific areas where Broadridge has deep understanding of client technology and operational processes
  • Inviting select clients to collaborate on specific use cases

Broadridge is uniquely positioned to help you accelerate your blockchain efforts.

Deep capital markets expertise: Broadridge is a trusted global partner to the largest financial institutions for their securities trade processing needs.

  • We process $5+ trillion in equity and fixed income trades per day globally.
  • We have over 50 years’ experience delivering best-in-class post-trade processing.

Experienced developer in blockchain technology: We have focused on a number of applications of blockchain technology that can provide a step change in process improvement:

Repos : We successfully completed a pilot in October 2017 with Natixis, Societe Generale and another Tier 1 bank which leverages blockchain technology to enhance the operational efficiency and auditability of bilateral repurchase, or repo, agreements. The pilot utilises distributed ledger technology capabilities to reduce operational risk for market participants by providing a secure record of repo trade details, reducing the need for reconciliation and removing obstacles to straight through processing.

Global Proxy : Santander and Broadridge completed a first practical use of blockchain for investor voting at an annual general meeting (AGM). In collaboration with J.P. Morgan and Northern Trust as custodian banks, the pilot was conducted on March 23 rd 2018 for Santander’s AGM and included participation from Banco Santander Corporate Services as the issuer’s agent. Running in parallel to Santander’s AGM, blockchain technology was utilised to produce a “shadow” digital register of the proxy voting taking place using the conventional voting model.

The implementation of a solution that employs blockchain technology enhances global proxy vote transparency and increases operational efficiency, security and analytics, which is beneficial for investors, issuers, agent banks and custodian banks. Learn more

Industry recognition: In May 2018, our blockchain technology supporting the processes for proxy voting and repo agreements received a patent from the US Patent and Trademark Office.

Active contributor to key industry blockchain protocols: Our developers are contributors to the most widespread open-source blockchain protocols, such as Hyperledger, Ethereum and Quorum.

Artificial Intelligence

Broadridge has been investing in AI, including Machine Learning (ML) and Robotic Process Automation (RPA). We have established a Centre of Excellence for AI/ML and RPA with industry leading talent. We are leveraging our deep expertise in post-trade, significant scale across our network of clients and view of industry data to assess where ML and RPA combined could be applied to drive benefits for our clients.

We have piloted and implemented a number of use cases across Broadridge. Here are a few examples:

  • Trade allocations: We interpret the trade allocation requests that arrive in structured or unstructured form and then process the allocations automatically using ML and RPA.
  • Securities finance supply and demand: This solution enables data mining from emails with offers, needs or location/hold requests. It collates information from a range of data sources, including securities available for borrow/loan or needed for settlement, short-selling or any other purpose.
  • Accounting Statements: The AI solution interprets unstructured statements from custodians and automates processing in the investment accounting system, streamlining a manual process to reduce review time from weeks to minutes and significantly improving data quality.