China Renaissance has expanded its post-trade processing relationship with Broadridge Financial Solutions in order to facilitate the clearing and settlement of both Shenzhen and Shanghai-listed equities.
The expansion builds on the solutions China Renaissance have offered clients in equity trading via Stock Connect, with Broadridge’s post-trade solution implemented in March 2020.
In 2016, Broadridge provided Hong Kong-listed equities processing to China Renaissance. Bboth firms are now jointly planning for upcoming market and regulatory changes, such as Hong Kong Exchange’s (HKEX) Synapse program and FINI (Fast Interface for New Issuance) proposal, which aims to replace the existing “T+5” process with “T+1” for newly listed shares on HKEX.
Andy Maynard, Managing Director, Global Head of Equities, China Renaissance, said: “We have been impressed by the resilience of Broadridge’s systems and, as a technology partner, Broadridge understands and supports multiple markets, including north and southbound trading across asset classes. We value our long-term relationship with Broadridge.
“Their experience with next-generation technologies for clearing and settlement will be beneficial for us to leverage as HKEX’s Stock Connect evolves, and the relationship allows us to be ahead of the curve for our clients.”
China Renaissance provides one-stop financial services across mainland China, Hong Kong and the United States, serving new economy entrepreneurs and investors globally.
China Renaissance selected Broadridge for its robust solutions that provide global scale and allow for multi-asset capabilities. “China Renaissance has been able to bring more efficiency to its operations and enable its growth ambitions by leveraging Broadridge’s local expertise and global scale, as seen in the successful implementation of our post-trade processing solution for Stock Connect markets,” said Danny Green, General Manager, International Post-Trade at Broadridge.
“Broadridge’s world-class technologies and experience in Asia have led us to become the technology provider of choice for many firms in the region. Our established platform allows clients to scale services with ease as they grow and continue to innovate through the adoption of The ABCDs of Innovation® – AI, blockchain, the Cloud and digital, that continue to evolve into market practices”, he added.
The fintech firm has recently gone live with its distributed ledger repo (DLR) platform that builds on the success of multiple pilots with sell-side and buy-side firms.
DLR provides a single platform where market participants can agree, execute and settle repo transactions. It allows for the immobilization of the underlying securities in the repo transactions, while transferring ownership via smart contracts executed on the platform.
The platform’s functionality significantly reduces the operating cost and risk of all repo activity, including intraday, overnight and term repos, both on a bilateral and an intracompany basis and also reduces counterparty risk while increasing auditability. In the first week since launch, DLR has executed $31B in average daily volume.