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Broadridge and Lombard Risk Forge Alliance on Collateral Management

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Broadridge Financial Solutions and Lombard Risk Management will outline details of their global alliance to develop and deliver collateral management solutions late next month or early May, when the companies plan to announce products and rollout schedules.

The alliance has been established to take Broadridge into the collateral management market by combining Lombard Risk’s Colline collateral, clearing, repo and optimisation technology with Broadridge’s applications and infrastructure. While Broadridge uses a hosted delivery approach for many of its financial services solutions, the company says a range of products and delivery methods will be made available to meet the needs of different users in capital markets.

Michael Hopkins, president of securities processing solutions fixed income and risk at Broadridge, says: “Collateral management is an adjacent segment to what we already offer clients, so it is a natural extension to our product portfolio. Regulatory changes mean market participants are in need of better collateral processing solutions. Because of the growing importance of this segment to our clients, we have formed the partnership with Lombard Risk to provide credible and timely collateral management offerings.”

For Lombard Risk, the alliance endorses its collateral management technologies and greatly increases its access to the North American market. John Wisbey, founder and CEO of Lombard Risk, says: “Our alliance will extend the use of Lombard Risk’s technology and our joint expertise within key markets and segments, particularly in the important North American market.”

The alliance’s first focus will be on products for large broker/dealers, with other products following. Similarly, it will start joint marketing and product roll out in North America, although this may not be exclusive depending on market demand from other regions.

Broadridge considered whether to build collateral management solutions in house, or whether to acquire or partner, opting for a partnership with Lombard Risk on the basis that the firms could combine their capabilities effectively to solve client problems and get to market quickly.

Hopkins explains: “We looked at what the market needs and how to assemble the required capabilities. Lombard Risk and Broadridge are complementary in terms of segments served and expertise on large and complex requirements. We have the processing power and infrastructure, while Lombard Risk has best-of-breed collateral solutions.”

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