Matsui Securities Adopts Broadridge's Post Trade Solution to Drive Stock Lending Efficiency

Rhea-AI Summary

Matsui Securities Co., Ltd. partners with Broadridge Financial Solutions, Inc. to enhance operational efficiency in stock lending business. The cloud-based SaaS post-trade processing solution aims to reduce maintenance burden and complexity, offering scalability and flexibility for future growth.

Insights

Financial Analyst

The partnership between Matsui Securities and Broadridge Financial Solutions represents a strategic move aimed at enhancing operational efficiency within the stock lending segment of Matsui's business. The shift to a cloud-based SaaS model is indicative of the broader industry trend towards digitization and automation, which can lead to a reduction in operational costs and improved scalability. For Matsui Securities, this transition may result in a more competitive edge in the online brokerage market, where margins are often thin and cost control is essential for profitability.

From a financial perspective, the expected decrease in maintenance costs and the potential for new market penetration could positively influence Matsui's bottom line. Investors will likely monitor the implementation phase closely, as the success of this integration could set a precedent for similar future endeavors and possibly impact the company's stock performance. The ability to scale services both locally and globally without significant additional investment is a critical factor in maintaining competitiveness in the fast-paced financial services industry.

Market Research Analyst

With the online securities brokerage market becoming increasingly competitive, firms are seeking ways to differentiate themselves and capture additional market share. The adoption of Broadridge's cloud-based SaaS solution by Matsui Securities may serve as a catalyst for market expansion, offering the firm the agility to respond to changing market demands and client needs. The modular aspect of the platform suggests that it can be tailored to specific functions, which can be a significant selling point for attracting new clients who require customized solutions.

Furthermore, the collaboration with a system integrator like Intelligent Wave indicates a comprehensive approach to the project, ensuring that front-end and back-end systems are seamlessly connected. This could enhance the user experience for Matsui's clients, potentially increasing client retention and attracting new users. The ability to streamline operations and reduce complexity could also allow Matsui to focus on innovation and service enhancement, which are key drivers of growth in the sector.

Technology Consultant

Transitioning to a cloud-based SaaS post-trade processing solution is a significant technological upgrade for Matsui Securities, signaling a move towards a more flexible and scalable infrastructure. The cloud's inherent advantages, such as on-demand resource availability, disaster recovery and high-level security, can provide Matsui with a robust platform for managing its stock lending transactions. The integration of Intelligent Wave's expertise in developing the front office component is crucial, as it ensures that the user interface aligns with the enhanced back-end capabilities provided by Broadridge.

The technical implications of this move are substantial. By leveraging SaaS, Matsui Securities can benefit from continuous updates and improvements without the need for extensive in-house IT development. This could lead to faster deployment of new features and compliance with regulatory changes, which is paramount in the financial industry. Additionally, the ability to compute collateral requirements, calculate fees, rebates and manufactured dividends automatically enhances accuracy and reduces the risk of human error, which is an essential consideration in financial transactions.

The modular cloud-based solution will open new markets and reduce maintenance burden and complexity

NEW YORK and TOKYO, March 10, 2024 /PRNewswire/ -- Matsui Securities Co., Ltd., one of Japan's top online securities brokers, has selected global Fintech leader Broadridge Financial Solutions, Inc.'s (NYSE: BR) cloud based SaaS post-trade processing solution to drive operational efficiency in its stock lending business. System integrator Intelligent Wave will develop the front office component and system integration as well as provide project management and overall consultation to Matsui Securities.

"Hitherto, we have operated an internally developed system for stock lending transactions, but as our business has grown it has become bloated, making system maintenance a significant burden," said Shinichi Uzawa, Managing Director, Corporate Division at Matsui Securities. "By adopting Broadridge's post-trade processing solution with its proven global track record, we expect to reduce our maintenance burden and facilitate a far more stable management with much greater operational efficiency."

"We are delighted to work with Matsui Securities and Intelligent Wave to meet their clients' current and future stock lending needs in Japan," said Ian Strudwick, Managing Director, Head of Asia Pacific at Broadridge. "In today's competitive online securities brokerage market, margin compression means that our clients are looking at new revenue growth opportunities and operating efficiencies. Our modular platform allows them to achieve these goals, quickly and with ease, and provides the flexibility for future expansion of their services locally and globally at scale."

Broadridge delivers global simplification, transformation and innovation across the trade lifecycle through scalable solutions. Broadridge's cloud based post-trade SaaS solution will allow Matsui Securities to process and settle all stock lending and borrowing transactions, manage the corresponding positions, compute required collateral, as well as automatically calculate fees and rebates and manufactured dividends.

About Matsui Securities

Matsui Securities Co., Ltd. is an online-focused securities firm that provides financial products and services to retail investors via the internet. Our range of products and services includes Japanese and U.S. stocks, forex, investment trusts, futures options, NISA, and iDeCo. Our corporate philosophy is "Supporting the prosperous lives of customers" and our corporate objective is "Delivering valuable financial products and services to retail investors." Under our corporate slogan, "As a reliable securities broker, we make investment fun and interesting," we are committed to a "reliable" approach to investment while aiming to provide products and services full of ideas that make investing "fun and interesting" through the excitement and enjoyment of the investment experience, helping our customers to discover and grow.

About Intelligent Wave

Intelligent Wave Inc. is an IT services firm that supports business reliability in sectors including settlement, finance and securities.

We have acquired a high share in the domestic Japanese market through developing, building, and maintaining systems for the financial industry that process large volumes of data accurately and in real time, including building online network gateway systems for settlement systems and stock price information distribution gateway systems for the securities market. We are also significantly expanding our information security business by introducing and disseminating our proprietary internal information security products, as well as advanced solutions from overseas, in the domestic market.

For more information, please visit: https://www.iwi.co.jp/en/

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $6 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. We deliver technology-driven solutions that drive business transformation for banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities, fixed income and other 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 about us, 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 solution did Matsui Securities Co., Ltd. select to drive operational efficiency in its stock lending business?

Matsui Securities Co., Ltd. selected Broadridge Financial Solutions, Inc.'s cloud-based SaaS post-trade processing solution.

Who will develop the front office component and provide project management for Matsui Securities?

Intelligent Wave will develop the front office component and provide project management for Matsui Securities.

What are the key benefits of adopting Broadridge's post-trade processing solution according to Shinichi Uzawa?

Shinichi Uzawa mentions that adopting Broadridge's solution will reduce maintenance burden, facilitate stable management, and enhance operational efficiency.

How does Broadridge's modular platform help clients achieve their goals?

Broadridge's modular platform allows clients to achieve revenue growth opportunities, operating efficiencies, and future service expansion locally and globally at scale.

What functionalities will Broadridge's cloud-based post-trade SaaS solution provide for Matsui Securities?

Broadridge's solution will allow Matsui Securities to process and settle stock lending transactions, manage positions, compute collateral, calculate fees and rebates, and handle manufactured dividends.