Broadridge launches AI-powered digital execution platform for next-gen liquidity corporate bonds

Global Fintech provider Broadridge Financial Solutions, Inc. (NYSE:BR), announced that LTX, its new AI-driven corporate bonds trading platform, has executed its first trades.

In the creation of LTX, Broadridge partnered with Jim Toffey, founder of Tradeweb Markets. The platform combines artificial intelligence (AI) with a new digital execution protocol that allows broker-dealers to improve market liquidity, efficiency and execution for their buy-side customers.

LTX is built on Broadridge’s US Fixed Income post-trade processing platform, which processes more than $6 trillion in notional volume per day across 40+ dealer clients. LTX uses AI (LTX AISM) to assist broker-dealers in digitizing their franchise to maximize liquidity for asset managers while delivering better transparency, “BestEx” and reducing information leakage.

Tim Gokey, Broadridge CEO commented:

Tim Gokey, Broadbridge

Tim Gokey

Over the past three years, Broadridge has been working with a number of dealers and their buy-side customers to develop an AI-enabled digital platform creating liquidity, digitizing workflows, and increasing efficiency in corporate bond trading. We’re excited to announce the creation of LTX based on successful trading activity on the platform over the past several weeks. This is the latest example of Broadridge applying next-generation technologies to create powerful industry solutions for broker-dealers and asset managers.

Broadridge launches AI-powered digital execution platform for next-gen liquidity corporate bonds

Jim Toffey, CEO of LiquidX and Vijay Mayadas, President, Global Fixed Income and Analytics at Broadridge, lead LTX with the support of a team of fixed income sales and trading professionals, technologists and data scientists.

LTX platform combines AI to locate and connect natural counterparties with a new digital protocol, RFX. It allows dealers to efficiently aggregate liquidity across multiple counterparties and create trading opportunities in seconds. The role dealers play is amplified and they are able to solve key needs for the buy-side.

The RFX protocol enables dealers to unlock more value from their data and customer network by identifying and aggregating liquidity across multiple buyers bidding for their desired amount, which in turn improves BestEx for their customers. LTX AI and the new LTX Liquidity Cloud also provide complete view into pre-trade and post-trade liquidity, further improving the ability of a dealer to aggregate liquidity from natural counterparties and better servicing their customers. These functionalities allow broker-dealers and asset managers to digitize complex processes for more efficient corporate bond trading. Utilizing next-gen technologies is part of Broadridge’s investment in The ABCDs of Innovation (AI, blockchain, the Cloud and digital), helping move the markets forward into the future.

The US corporate debt market has increased to almost $10 trillion with only a small fraction traded daily and an even smaller fraction traded electronically. Less than 25% of the traded bonds are done so electronically. The markets today increase the need for efficient access to liquidity. Greenwich Associates report published in January 2019, stated that 82% of corporate bond investors found trades sized over $15 million “very difficult” to execute. LTX’s AI, Liquidity Cloud and RFX address the challenges investors face.

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