AI-based corporate debt trading platform executes first trades

Broadridge Financial Solutions has announced that its new AI-driven corporate bond trading platform, LTX, has executed its first trades.

Broadridge partnered with Jim Toffey, founder of Tradeweb Markets, to create LTX. It 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.

It is based on Broadridge’s US fixed income post-trade processing platform, which processes over $6 trillion in notional volume per day. 

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, less than 25% is traded electronically.

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.

“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,” said Tim Gokey, Broadridge’s CEO. “We’re excited to announce the creation of LTX based on successful trading activity on the platform over the past several weeks.”

Jim Toffey, CEO of LiquidX, leads LTX alongside Vijay Mayadas, President of Global Fixed Income and Analytics at Broadridge.