Broadridge Financial Solutions has secured a US patent for blockchain technology that will enhance the processes for proxy voting and repurchase, or repo, agreements.
Building on Broadridge’s successful blockchain-based bilateral repo pilot with two global investment banks, which showed how blockchain technology can increase operational efficiency, reduce risk and improve auditability, the ‘238 Patent’ demonstrates how Broadridge’s technology can streamline reconciliation processes, improve data management and reduce non-value added costs. It will also expand Broadridge’s end-to-end proxy solution suite, leveraging the firm’s collaboration with three leading global banking institutions to employ blockchain technology to enhance global proxy vote transparency and analytics.
“This blockchain patent is a significant milestone in Broadridge’s commitment to drive the innovation roadmap for the financial services industry,” says President and Chief Operating Officer of Broadridge, Tim Gokey (pictured). “Through the invention of technology-based solutions, we aim to increase efficiency in the market and provide real business value for our clients that enables them to get ahead of today’s challenges and to capitalise on tomorrow’s opportunities.”
The invention couples Broadridge’s private permissioned distributed ledger technology with cryptographic private keys to improve record keeping, security, accuracy, reconciliation, validation, data integrity, quality assurance, efficiency and speed to repo agreements and proxy processing. In the proxy context, the ‘238 Patent covers Broadridge’s private permissioned blockchain system and method of implementing various features of Broadridge’s end-to-end proxy solution that enhance the proxy voting experience for key stakeholders. The ‘238 Patent is also directed to implementing Broadridge’s private permissioned blockchain system to administer repo agreements.
