Broadridge Financial Solutions (NYSE:BR) today announced that it has concluded a software purchase agreement with Mitsui Knowledge Industry Company Limited (MKI) in Japan.
Under this agreement, Broadridge has acquired all intellectual property rights in MKI's B-Fund solution. The solution provides connectivity and associated processing for Japanese government bonds (JGB) and Japanese yen (JPY) payments that clear and settle through the Bank of Japan's BOJ-Net System.
The B-Fund solution will be renamed and marketed by Broadridge as Gloss BOJ Processing Solution, with changes being effective immediately.
Under the terms of the software purchase agreement, Broadridge will license the B-Fund solution back to MKI to allow MKI to provide continuing support to its existing customer base.
The Bank of Japan has announced plans to redevelop its BOJ-Net System utilising XML-based messaging, which is expected to go live in early 2016. Broadridge recognises that this change is pending and is fully committed to meeting the new requirements, and any client of the Gloss BOJ Processing Solution can be confident of continuity of service across this large-scale industry change. As a provider of solutions to many markets, Broadridge has long-standing and industry-leading experience in XML-based messaging solutions.
Broadridge can now offer a full-function multi-language, including Japanese, post-execution clearing and settlement solution for equities, fixed income and related instruments with interfaces to both JASDEC and the Bank of Japan, together with comprehensive regulatory and legal reporting (JRR / JLL) for Japan. The same platform can also provide global support for settlement at custodians and CSD/ICSDs via SWIFT or Euroclear, and domestic settlement in key international markets. As Broadridge supports component-based solutions, Broadridge will also market free-standing JASDEC and BOJ functionality and connectivity solutions.
The necessary knowledge transfer and support arrangements have commenced to allow Broadridge to immediately offer this solution to existing customers and prospects. The underlyinging technology base is highly compatible with Broadridge's existing solutions and well-understood by its large IT teams in Japan and India.
"We believe this is a game-changing announcement," said Robin Kneale, Head of Strategy and Product Management, Securities Processing Solutions, International, Broadridge. "We are very pleased to form an alliance with a highly respected Japanese company. We have been established and active in Japan for over 12 years, serving a prestigious, core set of clients. Now there is real choice available to all banks and brokers in Japan looking to connect to BOJ and JASDEC to process Japanese equities and fixed income on a modern, real-time, globally-proven solution that also offers extensive international capabilities."
Shigeo Suzuki, Executive Managing Officer, MKI said, "We are delighted to enter into this initiative with Broadridge. They are a leading provider of global trade processing and settlement solutions, with an exemplary reputation for the highest standards of customer service and a strong track-record for innovation and product investment in Japan. It is our firm belief that banks and brokers in Japan are interested in a more global outlook and solution set, and Broadridge is a proven leader in this field. We look forward to working together to extend the services and solutions offered to our regional client base and to the global financial community here in Japan."
Tom Carey, President, Securities Processing Solutions, International, Broadridge, added, "We are delighted to be working with MKI and extending our solutions for the Japanese market. This reaffirms Broadridge's long-term commitment to Japan and our commitment to be a leading solutions vendor to firms in this market."