AllianceBernstein Executes Landmark Corporate Bond Trade Utilizing Broadridge's LTX® Trading Platform with Four Buyers on Same Block Trade

Rhea-AI Summary

On April 22, 2021, AllianceBernstein made history in fixed income trading by executing a significant block trade through Broadridge's LTX platform. This marked the first instance of a buy-side firm receiving aggregated liquidity from multiple buyers in real time. The innovation allows asset managers to trade large blocks of bonds more efficiently by leveraging LTX's RFX protocol, which optimizes buyer matching and enhances liquidity. Since January 2021, over 10 dealers and 40 asset managers have joined the platform, reflecting its growing influence in the bond market.

Positive

• First buy-side firm to execute a multiple buyer block trade, setting a precedent in fixed income trading.
• LTX platform streamlines the trading process, potentially increasing liquidity and efficiency for asset managers.
• Growing adoption of LTX, with over 10 dealers and 40 asset managers on board, indicating market validation.

Negative

• None.

NEW YORK, April 22, 2021 /PRNewswire/ -- Leveraging next-gen technology, AllianceBernstein made fixed income trading history by becoming the first buy-side firm to receive aggregated liquidity from multiple buyers on the same block trade. The trade was enabled by LTX, A Broadridge Company (NYSE:BR), and powered by LTX's patented RFX protocol. AllianceBernstein tapped into its dealer's customer network to sell a large block of bonds and access aggregated liquidity from four buyers at once and in real time.

"A challenge facing many asset managers is how to trade blocks of bonds more efficiently," said Tim Kurpis, Head of Investment Grade Trading, AllianceBernstein. "Most electronic solutions focus on smaller sizes and liquid bonds, but 70-75% of the corporate bond market still trades over the phone. LTX brings a different approach for accessing liquidity that offers new protocols to better match potential counterparties and allow multiple bids or offers for a bond."

Instead of putting dealers in competition, LTX enables dealers to distribute bonds across their customer network, amplifying the buy-side's opportunity to maximize liquidity and achieve improved best execution. Using LTX's powerful artificial intelligence, AllianceBernstein's dealer identified the potential natural buyers of the bond within their customer network, leading to the RFX trading invitation. Customers invited to participate in the RFX were able to bid for their preferred amount of bonds and improve their price as needed to fulfill their order.

"This is a major milestone for the fixed income market," said Jim Toffey, CEO of LTX. "This is the latest example of how our next-gen RFX protocol benefits market participants and goes beyond electronifying the phone call to create a digital liquidity pool of natural counterparties that will move the bond market forward."

To date, over 10 dealers and 40 asset managers representing a significant liquidity pool have joined the LTX platform, with an additional 50 firms in the pipeline to join at midyear. The number of RFX sessions on the platform has steadily increased since January 2021, and the platform recently surpassed the half-billion mark in total amount of bonds offered.

About Broadridge

Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $4.5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. We deliver technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge's technology and operations platforms underpin the daily trading of on average more than U.S. $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work^®, Broadridge is a part of the S&P 500^® Index, employing over 12,000 associates in 17 countries. For more information about us and what we can do for you, please visit www.broadridge.com.

Investors:

W. Edings Thibault
Investor Relations
+ 1 516-472-5129
Edings.thibault@broadridge.com

Media:

Tina Wadhwa                                     
Broadridge Financial Solutions
+1 212-973-6164                   
tina.wadhwa@broadridge.com

 

View original content:http://www.prnewswire.com/news-releases/alliancebernstein-executes-landmark-corporate-bond-trade-utilizing-broadridges-ltx-trading-platform-with-four-buyers-on-same-block-trade-301274621.html

SOURCE Broadridge Financial Solutions, Inc.

FAQ

What milestone did AllianceBernstein achieve on April 22, 2021?

AllianceBernstein became the first buy-side firm to receive aggregated liquidity from multiple buyers in a single block trade.

How does LTX's RFX protocol benefit fixed income trading?

LTX's RFX protocol enhances liquidity by allowing asset managers to access multiple bids and offers simultaneously, improving trading efficiency.

What notable growth has LTX experienced since January 2021?

LTX has seen the participation of over 10 dealers and 40 asset managers, indicating a significant increase in market engagement.

What is Broadridge's role in this trading innovation?

Broadridge, through its LTX platform, provides the technology enabling real-time aggregated liquidity for block trades.

How does this development impact the bond market?

The ability to trade large blocks more efficiently is expected to enhance liquidity and improve execution quality in the bond market.