Broadridge Financial Solutions has selected 7 Chord, an independent predictive pricing and analytics provider, as the source for intraday corporate bond prices on its new artificial intelligence (AI)-driven, digital corporate bond trading platform, LTX.
LTX, led by Jim Toffey, has been developed to use analytics to optimise trade execution and the integration with BondDroid, 7 Chord’s predictive pricing engine for bonds, is intended to provide buy-side firms and dealers with an independent assessment of current market value to inform investment decisions.
BondDroid’s AI-generated prices are integrated directly into LTX’s pre-trade analytical tools, giving dealers and institutional investors a view into market liquidity before they trade, while controlling information leakage as part of the LTX service for users.
LTX uses AI to connect natural counterparties with a new digital trading protocol, RFX, that should enable dealers to aggregate liquidity across multiple counterparties in a process expected to take seconds. Identifying the natural counterparties for a trade depends on a realistic understanding of fair market value. BondDroid uses AI to adapt its behavior in real-time to variations in pricing, using streaming data.
“BondDroid is a next-generation pricing solution built for a modern institutional fixed income trader,” said Kristina Fan, CEO and Founder, 7 Chord. “2020 provided us with the ultimate test, and BondDroid passed with flying colours. While many traditional vendors struggled to produce accurate prices in March in a timely manner, BondDroid had no issues handling elevated transaction volume, wildcard events and unprecedented volatility.”
Announced in June, the LTX platform uses its patent-pending AI (LTX AI) to find liquidity, digitise workflows and try to increase efficiency in the corporate bond market.
