Broadridge and Tradeweb founder launch AI-powered bond trading platform

Tradeweb founder Jim Toffey worked with Broadridge to create the new bond trading platform using AI technology.

Trading technology provider Broadridge has launched a new corporate bond trading platform that uses artificial intelligence, after teaming up with Tradeweb founder Jim Toffey.

Known as LTX, the trading platform combines AI with a new digital execution protocol that allows broker-dealers to effectively digitise their business and provide market liquidity more efficiently to buy-side clients. The platform has already executed its first trades.

Broadridge said RFX, the digital execution protocol, goes beyond the request for quote (RFQ) protocols and enables broker-dealers to aggregate liquidity across multiple counterparties. The platform also includes analytics on pre- and post-trade liquidity via the LTX Liquidity Cloud tool.

Jim Toffey, who co-founded fixed income platform provider Tradeweb in 1998 and served as its chief executive for a decade, will lead LTX alongside Vijay Mayadas, president of global fixed income and analytics at Broadridge. They will be supported by a team of fixed income sales and trading staff, technologists, and data scientists.

“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, digitising 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.”

Broadridge added that improving liquidity in corporate bond markets is crucial, and the size, complexity, and opacity of the market combined with regulatory requirements has increased the need for traders to access liquidity more efficiently. The US corporate debt market has grown to almost $10 trillion, although only a small fraction is traded daily, and of bonds that do trade only 25% currently trade electronically.