First Abu Dhabi Bank Chooses Broadridge to Build Global Agency Securities Finance Business

Rhea-AI Summary

First Abu Dhabi Bank (FAB) has selected Broadridge Financial Solutions (NYSE: BR) to expand its global agency securities finance business, marking a significant development in securities finance within the UAE and Middle East region. FAB will utilize Broadridge's Securities Finance and Collateral Management (SFCM) solution to enhance its coverage of global fixed income and equities markets. The collaboration features the first AWS SaaS deployment in the region, demonstrating Broadridge's commitment to supporting FAB's strategic objectives in navigating securities borrowing and lending regulations.

Positive

• Strategic expansion into UAE and Middle East securities lending market
• First AWS SaaS deployment in the region, showing technological leadership
• Enhanced coverage of global fixed income and equities markets

Negative

• None.

Insights

Financial Technology Analyst

This partnership marks a strategic expansion into the Middle East's securities lending market, with Broadridge providing critical infrastructure through its SFCM solution. The AWS SaaS deployment represents a significant technological advancement for the region's financial services. For Broadridge, this deal strengthens their position in the growing Middle Eastern market while providing a new revenue stream from a major regional bank. The collaboration with First Abu Dhabi Bank, one of the largest banks in the UAE, offers substantial growth potential as the regional securities lending market develops. This positions Broadridge to capture increased market share in an emerging financial hub, though the immediate revenue impact may be modest relative to Broadridge's overall operations.

Market Research Analyst

The Middle East's securities finance market is relatively underdeveloped compared to Western markets, presenting significant growth opportunities. First Abu Dhabi Bank's initiative to build out its securities lending capabilities could catalyze broader market development in the region. The partnership leverages Broadridge's established technology platform while providing FAB with competitive advantages in a nascent market. This deal could serve as a template for similar arrangements with other regional financial institutions, potentially leading to additional contracts for Broadridge in the Middle East. The strategic value lies in establishing an early presence in a market with substantial growth potential.

Expansion of securities finance within the UAE and broader Middle East

NEW YORK and ABU DHABI, UAE and LONDON, Dec. 11, 2024 /PRNewswire/ -- To drive expansion of Securities Lending in the UAE and wider Middle East, First Abu Dhabi Bank (FAB) has chosen global Fintech leader, Broadridge Financial Solutions, Inc. (NYSE: BR), to support the build out of its global agency securities finance business. This collaboration marks a significant milestone in the expansion of securities finance within the UAE and the broader Middle East region. By leveraging Broadridge's advanced Securities Finance and Collateral Management (SFCM) solution, FAB is well-positioned to enhance its coverage of global fixed income and equities markets.

"The commitment of both FAB and Broadridge to bring innovative products and solutions to market and to simplifying and innovating trading," said Darren Crowther, Head of Securities Finance and Collateral Management, Broadridge. "This collaboration caters for the growing demand for securities lending and borrowing within the Middle East and is aligned both with local regulatory needs and with international best practices."

Broadridge's provision of an agile and robust SFCM platform — the first AWS SaaS deployment in the region — highlights a renewed focus on in the Middle East and indicates readiness to support FAB's strategic goals. As FAB navigates the evolving landscape of securities borrowing and lending regulations in the region's markets, this collaboration is expected to yield new opportunities and efficiencies that will benefit clients across the globe.

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

What is the significance of FAB choosing Broadridge (BR) for securities finance?

FAB's selection of Broadridge marks a significant expansion of securities lending in the UAE and Middle East, enabling enhanced coverage of global fixed income and equities markets through advanced SFCM solutions.

How is Broadridge (BR) implementing its solution for First Abu Dhabi Bank?

Broadridge is implementing its Securities Finance and Collateral Management (SFCM) solution through the first AWS SaaS deployment in the region, providing an agile and robust platform.

What markets will FAB cover using Broadridge's (BR) SFCM solution?

FAB will use Broadridge's SFCM solution to cover global fixed income and equities markets, expanding its securities finance capabilities.

How does the FAB-Broadridge (BR) partnership align with regional regulations?

The collaboration is aligned with both local regulatory requirements in the Middle East and international best practices for securities borrowing and lending.