Broadridge Expands OTC Derivatives Reporting Solution Across Multiple Jurisdictions

Rhea-AI Summary

Broadridge Financial Solutions, Inc. (NYSE:BR) has announced its readiness to support new OTC derivatives reporting requirements by the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC), effective October 21, 2024. The company is also expanding its offerings to include updated regulatory regimes in Canada (July 2025) and Hong Kong (September 2025).

Broadridge's solution simplifies complex trading requirements, enabling firms to comply with varying local rules seamlessly. The company is developing the US equivalent of SFTR for Securities Lending – the SEC 10c-1, scheduled for January 2026. Additionally, Broadridge will upgrade its solution to accommodate major EU and UK MiFID updates from 2025 to 2027 and the final updates to CFTC Dodd Frank Reporting.

Positive

• Expansion of OTC derivatives reporting solution to support new requirements in Singapore and Australia
• Proactive development for upcoming regulatory changes in Canada and Hong Kong
• Addition of European Money Market Statistical Reporting (MMSR) in July 2024
• Development of US equivalent of SFTR for Securities Lending (SEC 10c-1)
• Planned upgrades for EU and UK MiFID updates and CFTC Dodd Frank Reporting

Negative

• None.

Insights

Regulatory Compliance Expert

Broadridge's expansion of its OTC derivatives reporting solution is a significant development in the regulatory technology space. The company is positioning itself as a key player in helping financial institutions comply with evolving global reporting requirements. This move demonstrates Broadridge's proactive approach to addressing upcoming regulatory changes in Singapore, Australia, Canada and Hong Kong.

The inclusion of Global Unique Transaction Identifiers (UTIs), Unique Product Identifiers (UPIs) and Critical Data Elements in their solution is particularly noteworthy. These standardized identifiers are important for improving transparency and consistency in derivatives reporting across jurisdictions. Broadridge's ability to integrate these elements showcases their technical capability and understanding of global regulatory trends.

For investors, this expansion signals Broadridge's potential for revenue growth in the regulatory technology sector. As financial institutions face increasingly complex reporting requirements, demand for comprehensive solutions like Broadridge's is likely to increase. However, the impact on Broadridge's financials may take time to materialize, as the implementation of these new reporting requirements is spread out over several years.

Financial Technology Analyst

Broadridge's strategic expansion in the OTC derivatives reporting space positions the company well in the growing regtech market. By addressing multiple jurisdictions and upcoming regulatory changes, Broadridge is diversifying its revenue streams and potentially increasing its market share in global financial technology solutions.

The company's proactive approach to developing solutions for future regulatory requirements, such as the Canadian and Hong Kong rewrites, demonstrates forward-thinking and could lead to first-mover advantages in these markets. This strategy may result in stronger client relationships and increased customer retention, as financial institutions look for long-term partners to navigate complex regulatory landscapes.

Investors should note that while this expansion is promising, the full financial impact may not be immediate. The staggered implementation of regulatory changes from 2024 to 2027 suggests a gradual revenue ramp-up. Additionally, the competitive landscape in regtech is intense and Broadridge will need to continue innovating to maintain its market position.

NEW YORK and LONDON and SINGAPORE, Oct. 20, 2024 /PRNewswire/ -- Broadridge Financial Solutions, Inc.  (NYSE:BR), a global technology leader, today announced its readiness to support new OTC derivatives reporting requirements by the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC) set to go live on October 21, 2024. Broadridge is also proactively expanding its offerings to include other updated regulatory regimes and asset classes, such as the Canadian rewrite scheduled for July 2025 and the Hong Kong rewrite slated for September 2025.

"We anticipate that the regulatory wave will continue, and we are proactively working on behalf of our clients to help them meet their compliance requirements," said Ben Cooling, General Manager, Regulatory Trade and Transaction Reporting at Broadridge. "The upcoming Canadian and Hong Kong rewrites are part of a global initiative aimed at enhancing the consistency and transparency of derivatives reporting, reflecting similar updates by regulators in the United States, Japan, and Europe."

Following the addition of the European Money Market Statistical Reporting (MMSR), which went live with an upgrade to v3.6 of rules in July 2024, Broadridge is developing the US equivalent of SFTR for Securities Lending – the SEC 10c-1, scheduled to go live in January 2026. Broadridge will also be upgrading its solution to cater for major EU and UK MiFID updates scheduled to come in over 2025 to 2027 and the final updates to CFTC Dodd Frank Reporting.

Broadridge's flexible solution simplifies complex trading requirements, enabling firms to comply with varying local rules seamlessly and is fully equipped to handle these changes, including the integration of Global Unique Transaction Identifiers (UTIs), Unique Product Identifiers (UPIs), and Critical Data Elements. 

These upcoming enhancements reaffirm Broadridge's commitment to supporting clients with their compliance across an array of regulatory jurisdictions, including those in the U.S., Europe, Canada, Singapore, Australia, Hong Kong, and beyond. Leveraging deep industry expertise, Broadridge consistently delivers innovative technology solutions that enable clients to navigate and meet complex global regulatory standards with confidence.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences. 

Our technology and operations platforms process and generate over 7 billion communications per year and underpin the daily trading of more than $10 trillion of securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries.

For more information, please visit www.broadridge.com. 

Broadridge Contacts:   Investors: Edings Thibault Head of Investor Relations, Broadridge broadridgeir@broadridge.com   Media: Gregg Rosenberg Global Head of Corporate Communications Gregg.Rosenberg@broadridge.com

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

When will Broadridge's OTC derivatives reporting solution for MAS and ASIC go live?

Broadridge's OTC derivatives reporting solution for the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC) will go live on October 21, 2024.

What upcoming regulatory changes is Broadridge (BR) preparing for in Canada and Hong Kong?

Broadridge (BR) is preparing for the Canadian regulatory rewrite scheduled for July 2025 and the Hong Kong rewrite slated for September 2025, both part of a global initiative to enhance consistency and transparency in derivatives reporting.

What new US regulation is Broadridge developing a solution for in the securities lending space?

Broadridge is developing a solution for the SEC 10c-1 regulation, which is the US equivalent of SFTR for Securities Lending, scheduled to go live in January 2026.

What major European regulatory updates is Broadridge (BR) planning to accommodate?

Broadridge (BR) is planning to upgrade its solution to cater for major EU and UK MiFID updates scheduled to come in over 2025 to 2027, as well as the final updates to CFTC Dodd Frank Reporting.