BBVA Group has entered a multi-year agreement with Broadridge Financial Solutions, Inc. (NYSE: BR) for a post-trade Managed Service to support its institutional fixed income business in the U.S. BBVA becomes one of more than two dozen clients to adopt Broadridge's North American Managed Service, an industry-leading utility model that enables BBVA to expand its product offering and gain significant trade processing and cost savings and enhance its risk controls.
Under the agreement, Broadridge will provide an integrated Managed Service to support fixed income and repurchase agreement processing, international clearance and settlement and investor communications services. Broadridge has supported reconciliations processing of equities, cash and exchange-traded derivatives for BBVA since 2013.
"As the fixed income market evolves, new technology and operating models will play an increasingly vital role for our business," said Ramon Martinez Sobrado, Head of CIB Global Operations for BBVA Group. "The strategy to move to Broadridge's Managed Service model enables BBVA to leverage significant scale and cost efficiencies to gain competitive differentiation for our U.S. institutional fixed income business. The expanded relationship with Broadridge is part of our strategy to deliver superior services to our clients while enhancing our core technologies and efficiencies."
"BBVA has long distinguished itself on the basis of operational and technology excellence," said Michael Alexander, president, Wealth and Capital Markets Solutions, Broadridge. "This expanded relationship will help the bank transform and streamline its institutional fixed income operation at a time when new models and technology can help set a path for the industry's future winners. We are delighted to support BBVA in this strategic program."
Broadridge's technology supports post-trade processing for 60 percent of all U.S. fixed income trading volumes, including 16 of the 22 U.S. primary dealers. It provides equities processing for six of the 10 largest global investment banks, and processes more than $5 trillion in U.S. equity and fixed income trades per day. Broadridge's Managed Service provides an innovative and rapidly growing outcomes-based service model. It handles approximately 16 percent of all U.S. institutional fixed income volumes, representing a doubling in volumes over the past year.