Transaction Network Services to Provide Order Routing and Market Data for Broadridge's Global Futures and Options Platform

Rhea-AI Summary

Broadridge Financial Solutions (NYSE: BR) announced the integration of its global Futures and Options (F&O) SaaS platform with Transaction Network Services (TNS) to enhance market data management. This collaboration provides futures commission merchants and agency brokers with global exchange connectivity for order routing and market data access, aiming to reduce operational risks and implementation costs while expediting time-to-market. The partnership supports 130 exchanges across 25 countries. Broadridge aims to simplify and optimize trading with modular and flexible deployment capabilities.

Positive

• Integration with TNS enhances Broadridge's F&O platform functionality for the derivatives market.
• Provides global exchange connectivity for order routing and market data access.
• Aims to reduce operational risks and implementation costs for clients.
• Expedites time-to-market for futures commission merchants and agency brokers.
• Supports access to more than 130 exchanges across 25 countries.
• Aligns with industry trends moving away from hosting in-house trading infrastructure.

Negative

• Potential dependency on TNS for market data and connectivity services.
• Operational risks related to third-party integration.
• Higher initial cost implications for the integration and transitioning process.

Insights

Financial Analyst

The recent integration of Transaction Network Services (TNS) with Broadridge's Global Futures and Options (F&O) Platform is a significant development for the financial services industry. This collaboration promises to reduce operational risk and lower implementation costs for clients, which can directly impact the bottom line of trading firms and futures commission merchants (FCMs). By leveraging TNS’ extensive network, Broadridge’s clients gain access to over 130 exchanges across 25 countries, enhancing their global trading capabilities.

From a financial standpoint, this integration could enhance Broadridge’s value proposition, potentially leading to higher client retention and new client acquisitions. The reduction in operational risk and implementation costs are key selling points that could improve profit margins for clients, making Broadridge’s platform more attractive in a competitive market.

Moreover, by offering these improvements as part of their SaaS model, Broadridge can expect recurring revenue streams, which are highly valued in the market for their predictability and stability. Investors should monitor the adoption rate of this integrated solution and any subsequent financial reports to gauge its impact on Broadridge’s financial performance.

Tech Expert

The integration of TNS with Broadridge's F&O platform is a noteworthy advancement from a technology perspective. By incorporating TNS' global exchange connectivity and market data services, Broadridge significantly enhances the functionality and reach of its platform. This move aligns with the industry's trend towards outsourcing IT infrastructure to specialized providers, allowing firms to focus on their core competencies.

Technologically, this integration means Broadridge's clients benefit from TNS' robust and resilient infrastructure. TNS' IaaS solutions, which include connectivity, colocation and cloud services, offer high reliability and performance. This is important for trading firms that require low-latency and high-speed access to global markets. The decreased time-to-market is another significant advantage, as it enables firms to capitalize on market opportunities more swiftly.

For traders and firms utilizing Broadridge's platform, the simplified market data management facilitated by TNS could lead to enhanced trading strategies and more efficient operations. This integration underscores the importance of leveraging specialized technology providers to remain competitive in the fast-paced financial markets.

Clients benefit from simplified market data management, reduced operational risk and implementation costs, and improved time to market for FCMs

NEW YORK, June 17, 2024 /PRNewswire/ -- To simplify market data management and reduce operational risk for clients, Broadridge Financial Solutions Inc. (NYSE:BR), today announced the integration of its global Futures and Options (F&O) Software-as-a-Service (SaaS) Platform with Transaction Network Services (TNS), a global leader in providing mission-critical infrastructure for financial markets. TNS will enhance the functionality of Broadridge's F&O platform for the derivatives market by providing global exchange connectivity for order routing and market data access as the vendor of record.

"With the addition of TNS, futures commission merchants and agency brokers will now have access to simplified, market data while benefiting from reduced implementation costs and improved time-to-market," said Mike Johnson, General Manager, F&O, Broadridge Trading and Connectivity Solutions. "Broadridge's F&O platform helps firms simplify and optimize trading through its modular and flexible deployment capabilities and we are committed to providing globally resilient solutions for our clients. This integration enhances our software offering and aligns with the growing industry trend where clients are moving away from hosting their own trading infrastructure." 

"Broadridge is a trusted global technology partner, and our collaboration underscores TNS' commitment to providing fast and resilient connectivity solutions, specifically designed and engineered to address the needs of the financial services industry worldwide," said Tom Lazenga, General Manager, TNS Financial Markets. "With access to more than 130 exchanges across 25 countries and extensive in-house expertise in each location, we are proud to support Broadridge in delivering a global source of exchange market data and infrastructure, helping their clients achieve greater efficiency and effectiveness in their trading activities."

For more information about Broadridge's F&O platform, please visit Futures & Options Trading Like Never Before.

TNS offers a range of connectivity, colocation, cloud, market data and VPN solutions within its Infrastructure-as-a-Service (IaaS) portfolio. For further information visit tnsi.com/solutions/financial/. 

About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with more than $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 U.S. $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 and what we can do for you, please visit www.broadridge.com.

About Transaction Network Services (TNS):

Founded in 1990 and with headquarters in the USA and offices across Europe and Asia, TNS is a leading provider of mission-critical infrastructure, connectivity, market data and analytic services for the Financial Markets community. Delivered as a fully managed Infrastructure-as-a-Service offering, TNS provides an unrivalled, global, mission-critical footprint that can significantly help reduce the burdens, complexities and costs attributed to firms 'going direct'. Through its ultra-low latency connectivity, its global market data offerings and its dedicated 24x7x365 local support, TNS remains the trusted solution provider to more than 750 counterparties globally.

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

TNS Media Contacts:

Finn Partners
Taylor Trovillion
+1 312 329 3983
TNS@FinnPartners.com

Or

TNS
Clare Cockroft/Bronte Saulle
703-814-8065
pr@tnsi.com 

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SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is the impact of Broadridge's integration with TNS on market data management?

The integration aims to simplify market data management, reduce operational risks, and lower implementation costs for Broadridge clients.

How many exchanges will Broadridge's F&O platform support with the TNS integration?

The F&O platform will support access to more than 130 exchanges across 25 countries.

What are the benefits of Broadridge's collaboration with TNS for futures commission merchants?

Futures commission merchants will benefit from simplified market data, reduced implementation costs, and improved time-to-market.

What industry trend does Broadridge's integration with TNS align with?

The integration aligns with the trend of clients moving away from hosting their own trading infrastructure.