LTX, a
subsidiary of Broadridge Financial Solutions Inc. (NYSE: BR), has announced
RFQ+, a new enhanced Request for Quote (RFQ) protocol. The patent-pending
protocol combines pre-trade dealer selection analytics and liquidity
aggregation, thus allowing for the processing of larger trades by pooling
multiple dealer responses.
Despite
growth in electronically traded volumes in recent years, larger trades are
still generally executed bilaterally. A survey by The DESK in 2023 revealed
that nearly 50% of mid-market credit asset managers avoid using e-trading for
orders between $5-10 million. At the same time, 64% never use it for orders
exceeding $10 million.
The role of
the new protocol is to change that. RFQ+ supplements current RFQ workflows and
is built on client feedback. Additionally, it integrates the AI-powered
BondGPT, which is an application developed by OpenAI GPT-4 that answers bond-related
questions.
“Executing
size in today’s credit markets is often challenging,” Steve Chylinski, the
Head of FI Trading at Eagle Asset Management, commented. “The approach
that LTX is taking to build on the familiar RFQ protocol with RFQ+, the
innovative aggregation capabilities and AI-powered Dealer Selection Scores can
potentially be a game changer for the buy-side and dealers to execute larger
trades electronically.”
RFQ+
tackles large transaction issues by merging AI-powered pre-trade Dealer
Selection Scores with a unique liquidity aggregation function. Dealer Selection
Scores aid buy-side clients in optimizing the number of dealers they interact
with for each RFQ. It is based on real-time and historical input from the LTX
Liquidity Cloud. The patent-pending technology connects bids and offers from
multiple dealers, allowing buy-side clients to fulfil the block in one
session.
“RFQ+
combines AI-powered pre-trade Dealer Selection Scores with novel liquidity
aggregation functionality to solve genuine client pain points and further
electronify the segment of the market that is still being traded bilaterally,”
Jim Kwiatkowski, the CEO of LTX, expressed his enthusiasm for the new protocol.
“This is the most recent example of LTX using emerging technologies to
drive efficiency in the corporate bond market [for] the benefit of dealers and the
buy side.”
Over 30
dealers and over 80 asset managers have joined the LTX platform. LTX has recorded
over $7 billion in firm orders and an average daily volume of over $25 billion
in the Liquidity Cloud in Q1 2023.
Broadridge to Offer Faster
Time to Markets
The global
fintech company with over $5 billion in revenue constantly updates its trading
offering to meet rising demand from its clients. In April, Broadridge launched
a new trading solution. This service helps clients streamline trading, manage
risks, and make smarter decisions. It also aids Broadridge Trading clients in
improving scalability, speeding up market time, and cutting technology costs.
Justin
Llewellyn-Jones, the Head of Capital Market Product Strategy at Broadridge,
stressed the significance of this new tech in trading infrastructure.
“By
using our unique ability to look across the front, middle, and back as a whole,
we are helping our clients solve pain points through trade lifecycle
simplification,” Llewellyn-Jones commented.
Broadridge
also confirmed UBS’s successful intraday repo transaction via its DLR platform.
This transaction involved an undisclosed Asian bank. Moreover, the company
partnered with Atlas Responsible Investors, an impact-focused hedge fund
manager. Through this, Broadridge provides technology updates to boost
efficiency in mid-level offices and improve risk and asset management.
LTX, a
subsidiary of Broadridge Financial Solutions Inc. (NYSE: BR), has announced
RFQ+, a new enhanced Request for Quote (RFQ) protocol. The patent-pending
protocol combines pre-trade dealer selection analytics and liquidity
aggregation, thus allowing for the processing of larger trades by pooling
multiple dealer responses.
Despite
growth in electronically traded volumes in recent years, larger trades are
still generally executed bilaterally. A survey by The DESK in 2023 revealed
that nearly 50% of mid-market credit asset managers avoid using e-trading for
orders between $5-10 million. At the same time, 64% never use it for orders
exceeding $10 million.
The role of
the new protocol is to change that. RFQ+ supplements current RFQ workflows and
is built on client feedback. Additionally, it integrates the AI-powered
BondGPT, which is an application developed by OpenAI GPT-4 that answers bond-related
questions.
“Executing
size in today’s credit markets is often challenging,” Steve Chylinski, the
Head of FI Trading at Eagle Asset Management, commented. “The approach
that LTX is taking to build on the familiar RFQ protocol with RFQ+, the
innovative aggregation capabilities and AI-powered Dealer Selection Scores can
potentially be a game changer for the buy-side and dealers to execute larger
trades electronically.”
RFQ+
tackles large transaction issues by merging AI-powered pre-trade Dealer
Selection Scores with a unique liquidity aggregation function. Dealer Selection
Scores aid buy-side clients in optimizing the number of dealers they interact
with for each RFQ. It is based on real-time and historical input from the LTX
Liquidity Cloud. The patent-pending technology connects bids and offers from
multiple dealers, allowing buy-side clients to fulfil the block in one
session.
“RFQ+
combines AI-powered pre-trade Dealer Selection Scores with novel liquidity
aggregation functionality to solve genuine client pain points and further
electronify the segment of the market that is still being traded bilaterally,”
Jim Kwiatkowski, the CEO of LTX, expressed his enthusiasm for the new protocol.
“This is the most recent example of LTX using emerging technologies to
drive efficiency in the corporate bond market [for] the benefit of dealers and the
buy side.”
Over 30
dealers and over 80 asset managers have joined the LTX platform. LTX has recorded
over $7 billion in firm orders and an average daily volume of over $25 billion
in the Liquidity Cloud in Q1 2023.
Broadridge to Offer Faster
Time to Markets
The global
fintech company with over $5 billion in revenue constantly updates its trading
offering to meet rising demand from its clients. In April, Broadridge launched
a new trading solution. This service helps clients streamline trading, manage
risks, and make smarter decisions. It also aids Broadridge Trading clients in
improving scalability, speeding up market time, and cutting technology costs.
Justin
Llewellyn-Jones, the Head of Capital Market Product Strategy at Broadridge,
stressed the significance of this new tech in trading infrastructure.
“By
using our unique ability to look across the front, middle, and back as a whole,
we are helping our clients solve pain points through trade lifecycle
simplification,” Llewellyn-Jones commented.
Broadridge
also confirmed UBS’s successful intraday repo transaction via its DLR platform.
This transaction involved an undisclosed Asian bank. Moreover, the company
partnered with Atlas Responsible Investors, an impact-focused hedge fund
manager. Through this, Broadridge provides technology updates to boost
efficiency in mid-level offices and improve risk and asset management.
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