Broadridge teamed with Tradeweb founder Jim Toffey to create the new platform for trading corporate bonds.

Broadridge Financial Solutions, Inc., (NYSE: BR), a global fintech company with over $4 billion in revenues, unveiled its LTX platform for trading in corporate bonds. The AI-driven platform has already traded successfully in recent weeks. (THE TRADE)

AI for insight on much-needed liquidity in bonds

Liquidity is the need of the exchequer in the U.S. corporate debt market. Though the size of the market is nearly $10 trillion, only a very small portion is traded every day. Of that, only about a quarter trades electronically.

Further, according to The Trade, bond traders need more efficient access to liquidity. This is because of the complexity and opacity of the market, as well as regulatory requirements.

LTX, the new bond trading platform from Broadridge, combines artificial intelligence with RFX, a new digital execution protocol. RFX goes beyond the request for quote (RFQ) protocols.

Tim Gokey, Broadridge CEO shared some details with CrowdFund Insider on how the platform provides a 360-degree view of available liquidity:

“LTX’s RFX protocol allows dealers to unlock more value from their data and customer network by smartly identifying and efficiently aggregating liquidity across multiple buyers bidding for their desired amount, which in turn helps improve BestEx for their customers.”

“In addition, LTX AI and the new LTX Liquidity Cloud® provide a more complete view into pre-trade and post-trade liquidity, further enhancing dealers’ ability to aggregate liquidity from natural counterparties and better servicing their customers.”

LTX, a three-year project

Gokey told The Trade that Broadbridge had collaborated with several dealers and buy-side customers over the past three years to develop the AI-enabled digital platform.

Furthermore, LTX created liquidity, digitized workflows, and increased efficiency in corporate bond trading, Gokey said.

Tradeweb founder Jim Toffey will lead the LTX team.

Assisting him will be Vijay Mayadas, president of global fixed income and analytics at Broadridge, and support staff.

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