LTX, the market operator division of Broadridge Financial Solutions has launched BondGPT, an application powered by OpenAI GPT-4 that answers bond-related questions and assists users in their identification of corporate bonds on the LTX platform. By incorporating real-time liquidity information from the LTX Liquidity Cloud, this application is intended to simplify workflows and bring further efficiency to users in their often-complex bond selection and portfolio construction processes, benefiting asset managers, hedge funds and dealers.
“Emerging technologies such as generative AI hold immense potential to drive electronification and transparency in the corporate bond market,” said Jim Kwiatkowski, CEO of LTX. “By increasing the use of data and applications like BondGPT, market participants can inform and expedite vital pricing decisions, facilitate counterparty selection, and broaden liquidity access. We are proud to accelerate the use of these innovations as we work towards smarter and more efficient trading processes for the industry.”
BondGPT offers a large language model (LLM) chat function that allows users to ask questions and identify corporate bonds on the LTX trading platform based upon the user’s criteria. The new, conversational interface leverages LTX’s Liquidity Cloud and patent-pending bond similarity technology, which filters based upon a vast set of user-adjusted parameters to assist in identifying bonds with similar characteristics to meet traders’ real-time liquidity needs. BondGPT combines the GPT-4 function with LTX’s patent-pending analytics and underlying dataset to support data timeliness, accuracy and compliance in an effort to avoid hallucination issues common in other implementations.
“LTX’s innovative implementation of generative AI for BondGPT offers portfolio managers and traders a new approach to pre-trade analysis, departing from traditional methods,” said Miguel Cota, VP & senior credit trader, American Century Investments. “This opens up unprecedented possibilities for credit investment professionals.”
“BondGPT powered by OpenAI GPT-4 is available to all Broadridge LTX clients today,” said Martin Koopman, chief product Officer and co-head of AI at Broadridge. “It adds generative AI to build on the AI neural network that LTX has used since launch. BondGPT is the first of many products and services Broadridge will release to our clients using this powerful technology in a safe manner, leveraging our deep regulatory knowledge and data privacy standards.”
To date, more than 30 dealers and more than 80 asset managers have joined the LTX platform, it says, representing a growing liquidity pool. LTX has reported over US$7 billon in initiated firm orders and an average daily volume of over US$25 billion in the Liquidity Cloud in Q1 2023.
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