Broadridge’s LTX launches BondGPT to help on bond market pricing, selection, and liquidity

Rick Steves

“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.”

Broadridge’s LTX, the subsidiary focused on electronic trading for fixed income, 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.

The generative AI application is now available to LTX clients to enhance liquidity and price discovery and fuel trading in the $10.3 trillion U.S. corporate bond market.

The BondGPT solution is expected to benefit asset managers, hedge funds, and dealers the most.

BondGPT incorporates real-time liquidity information from the LTX Liquidity Cloud

BondGPT is incorporating real-time liquidity information from the LTX Liquidity Cloud to simplify workflows and bring further efficiency to users in their bond selection and portfolio construction processes.

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.

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 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 for pricing decisions, counterparty selection, and liquidity

Jim Kwiatkowski, CEO of LTX, said: “Emerging technologies such as generative AI hold immense potential to drive electronification and transparency in the corporate bond market. 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.”

Miguel Cota, VP & Senior Credit Trader, American Century Investments, commented: “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. This opens up unprecedented possibilities for credit investment professionals.”

Martin Koopman, Chief Product Officer and Co-Head of AI, Broadridge, added: “BondGPT powered by OpenAI GPT-4 is available to all Broadridge LTX clients today. 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.”

The LTX platform currently caters to more than 30 dealers and more than 80 asset managers, representing a significant liquidity pool with over $7 billon in initiated firm orders and an average daily volume of over $25 billion in the Liquidity Cloud in Q1 2023.

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