The Competition Bureau of Canada has intensified its investigation into Broadridge Software Limited and its affiliates (Broadridge) under the Competition Act.
The inquiry focuses on allegations of anti-competitive behavior in the market for book of record platforms, a critical tool for Canadian broker-dealers managing securities and investment assets.
Key Concerns and Actions
Broadridge is under scrutiny for practices that may restrict competitors’ ability to provide complementary software products to broker-dealers. The Bureau is also examining Broadridge’s acquisition of Securities Industry Services (SIS) from Kyndryl Canada Limited, finalized on November 1, 2024, to determine if the merger substantially reduces competition in the market.
The Bureau has obtained court orders to advance its investigation, gathering information from various market participants. As per the law, the Bureau has one year from the transaction’s completion to challenge the merger if deemed anti-competitive.
Public Involvement Sought
To aid its investigation, the Bureau is inviting feedback from stakeholders, including broker-dealers, platform competitors, and complementary software providers. Contributions can be made confidentially by emailing cbrecords-registresbc@cb-bc.gc.ca. This input will be essential in assessing Broadridge’s conduct and the competitive impact of its acquisition of SIS.
Background on Book of Record Platforms
Book of record platforms are essential tools in the financial sector, acting as centralized ledgers for securities transactions and other investment data. Broadridge, already a significant player in this field, owns three platforms: Dataphile, BPSC, and RPM. The recent acquisition of SIS has further expanded its portfolio, raising concerns over market concentration.
No Findings of Wrongdoing Yet
The Bureau emphasizes that the investigation does not imply wrongdoing at this stage. Any decision to challenge Broadridge’s practices or its acquisition will follow a thorough review of evidence and stakeholder input.
For updates, stakeholders are encouraged to monitor the Bureau’s communications.
