Enhanced version of the industry standard RFQ
protocol facilitates larger trades using patent-pending aggregation
capability
NEW
YORK, June 22, 2023 /PRNewswire/ -- To better
facilitate large trade sizes and reduce information leakage, LTX, a
subsidiary of Broadridge Financial Solutions Inc. (NYSE: BR),
today announced the launch of RFQ+, a patent-pending enhanced RFQ
protocol that combines pre-trade dealer selection analytics with
liquidity aggregation capabilities. RFQ+ builds on existing RFQ
workflows and facilitates larger trades by aggregating multiple
dealer responses for their desired amounts. RFQ+ was developed
based upon client feedback as a complement to LTX's unique RFX
protocol. Through RFQ+ and the recent launch of
BondGPT powered by OpenAI GPT-4, LTX is driving innovation
with the next generation of AI-enabled workflows.
"Executing size in today's credit markets is often challenging,"
said Steve Chylinski, Head of FI
Trading at Eagle Asset Management. "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."
While electronically traded volumes have grown in the corporate
bond market in recent years, electronic execution methods currently
available do not accommodate larger trades sizes, which continue to
be traded bilaterally. A 2023 survey from The DESK found that
nearly half of mid-market credit asset managers say they never use
e-trading for orders between $5-10M. 64% say
they never use e-trading for orders over $10M. When asked about their most difficult
execution objectives, almost 40% said size, and 23% said both size
and price.
"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," said Jim Kwiatkowski, CEO of LTX. "This is the most
recent example of LTX using emerging technologies to drive
efficiency in the corporate bond market to the benefit of dealers
and the buy side."
Dealer Selection Scores allow a buy-side client to optimize the
number of dealers to whom the client sends each RFQ, based on
dealers' real-time and historical LTX Liquidity
Cloud® inputs as well as pricing and platform
behavior. Dealer Selection Scores also benefit dealers, allowing
them to enhance direct networking to their clients.
After an RFQ+ is sent to an optimal group of dealers, multiple
dealer responders can bid/offer for the size they each want.
Patent-pending technology aggregates the bids/offers, allowing the
buy-side client to fulfill the block in one session with multiple
dealers.
To date, more than 30 dealers and more than 80 asset managers
have joined the LTX platform, representing a significant liquidity
pool. LTX has attracted many of the world's leading asset managers
and dealers, with over $7 billon in
initiated firm orders and an average daily volume of over
$25 billion in the Liquidity Cloud in
Q1 2023.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with more than $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 that drive
business transformation for 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. Our technology and operations platforms underpin the daily
trading of more than U.S. $9 trillion
of equities, fixed income, and other securities globally. A
certified Great Place to Work®, Broadridge is part of the S&P
500® Index, employing over 14,000 associates in 21 countries.
For more information about us and what we can do for you, please
visit www.broadridge.com.
About LTX
LTX is an electronic trading platform that enables corporate
bond market participants to trade smarter, combining powerful,
patented artificial intelligence with innovative e-trading
protocols to improve liquidity, efficiency, and execution. The
Liquidity Cloud is the LTX network of anonymous real-time buy- and
sell-side indications of interest which include CUSIP, direction,
price, and size.
LTX is a division of Broadridge Business Process Outsourcing
LLC, the broker-dealer subsidiary of Broadridge Financial
Solutions.
For more information about LTX, please visit
www.ltxtrading.com.
Broadridge Contacts:
Investors:
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com
Media:
Tina Wadhwa
Corporate Communications
Tina.Wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.