Broadridge Creates New AI-Driven Digital Execution Platform to Bring Next-Generation Liquidity to Corporate Bonds

Rhea-AI Summary

Broadridge Financial Solutions (NYSE: BR) has launched its AI-driven corporate bond trading platform, LTX®, which recently executed its first trades. Developed in partnership with Jim Toffey, LTX aims to enhance liquidity, efficiency, and execution in corporate bond trading for broker-dealers and asset managers. The platform utilizes advanced AI and a new digital execution protocol, RFX®, to better connect buyers and sellers in the nearly $10 trillion U.S. corporate debt market. Broadridge continues to innovate in fintech, aiding clients in navigating complex trading environments.

Positive

• Launch of LTX® enhances liquidity and trading efficiency in corporate bonds.
• Successful initial trades indicate strong market interest and adoption.
• Partnership with industry leaders like Jim Toffey enhances credibility.
• AI and RFX® protocol improve execution and transparency in trading.

Negative

• None.

NEW YORK, June 17, 2020 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (NYSE: BR), a global fintech leader, today announced that its new AI-driven corporate bond trading platform, LTX®, has executed its first trades. Broadridge has partnered with Jim Toffey, founder of Tradeweb Markets, to create LTX, which combines powerful artificial intelligence (AI) with a new digital execution protocol that enables broker-dealers to significantly improve market liquidity, efficiency and execution for their buy-side customers.

Built on Broadridge's US Fixed Income post-trade processing platform, which processes over $6 trillion in notional volume per day across 40+ dealer clients, LTX uses AI (LTX AI^SM) to help broker-dealers digitize their franchise to maximize liquidity for asset managers while delivering improved transparency, "BestEx" and minimizing information leakage.

"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," said Tim Gokey, Broadridge CEO. "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."

Toffey, CEO of LiquidX, leads LTX alongside Vijay Mayadas, President, Global Fixed Income and Analytics at Broadridge, supported by a world-class team of fixed income sales and trading professionals, technologists and data scientists.

Improving corporate bond liquidity is a critical need, and the LTX platform is rapidly being embraced by leading broker-dealers and asset managers. LTX works by combining powerful AI to locate and connect natural counterparties with a new digital protocol, RFX^®, that enables dealers to efficiently aggregate liquidity across multiple counterparties and create trading opportunities in seconds. These new technologies amplify the critical role dealers play, enabling them to solve a key need for the buy-side.

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. These new capabilities enable broker-dealers and asset managers to digitize complex processes for more efficient corporate bond trading. Leveraging these next-gen technologies is part of Broadridge's investment in The ABCDs of Innovation® - AI, Blockchain, Cloud and Digital – helping clients and the industry move markets forward into the future.

The total size of the US corporate debt market has grown to nearly $10 trillion with only a small fraction traded daily and an even smaller fraction traded electronically. Of bonds that do trade, fewer than 25% trade electronically today. The size, complexity and opacity of the market, along with more stringent regulations, have greatly increased the need for buy-side firms and dealers to access liquidity efficiently. According to a Greenwich Associates report published in January 2019, 82% of corporate bond investors found trades above $15 million in size "very difficult" to execute. LTX's AI, Liquidity Cloud and RFX will directly address these challenges.

About Broadridge

Broadridge Financial Solutions, Inc. (NYSE: BR), a $4 billion global Fintech leader, is a leading provider of investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers and corporate issuers. Broadridge's infrastructure underpins proxy voting services for over 50% of public companies and mutual funds globally, and processes on average more than $7 trillion in fixed income and equity securities trades per day. Broadridge is part of the S&P 500® Index and employs over 11,000 associates in 18 countries.

For more information about Broadridge, please visit www.ltxtrading.com.

Contact Information

Investors:
W. Edings Thibault
Investor Relations
(516) 472-5129

Media:
Gregg Rosenberg 
Corporate Communications, Broadridge
(212) 918-6966 

View original content to download multimedia:http://www.prnewswire.com/news-releases/broadridge-creates-new-ai-driven-digital-execution-platform-to-bring-next-generation-liquidity-to-corporate-bonds-301078341.html

SOURCE Broadridge Financial Solutions, Inc.

FAQ

What is Broadridge's new trading platform LTX®?

LTX® is an AI-driven corporate bond trading platform launched by Broadridge Financial Solutions to enhance liquidity and efficiency in the corporate bond market.

When was the LTX® platform launched?

The LTX® platform was announced on June 17, 2020.

How does LTX® improve corporate bond trading?

LTX® combines AI technology with a digital execution protocol to better connect buyers and sellers, addressing liquidity challenges in the $10 trillion U.S. corporate debt market.

Who partnered with Broadridge to create LTX®?

Broadridge partnered with Jim Toffey, the founder of Tradeweb Markets, to develop the LTX® platform.

What is the significance of LTX® for broker-dealers?

LTX® enables broker-dealers to aggregate liquidity efficiently, improving execution and enhancing services for asset managers.