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. Advanced analytics sit at the core of LTX, and the integration with BondDroid, 7 Chord’s award-winning predictive pricing engine for bonds, provides buy-side firms and dealers with an independent assessment of current market value to inform critical investment decisions.
BondDroid’s AI-generated prices are integrated directly into LTX’s pre-trade analytical tools, giving dealers and institutional investors a complete view into actual market liquidity before they trade, while controlling information leakage and at no additional cost to LTX users.
“The LTX platform empowers dealers and institutional investors to better connect and trade corporate bonds digitally using AI that offers greater insights into pre-trade price transparency and liquidity,” says Vijay Mayadas, President, Capital Markets at Broadridge. “BondDroid’s AI provides our clients with a more reliable baseline to measure the quality of execution they achieved through our digital trading protocol, RFX.”
LTX works by combining powerful AI to connect natural counterparties with a new digital trading protocol, RFX, that enables dealers to efficiently aggregate liquidity across multiple counterparties in seconds. Identifying the natural counterparties for a trade depends on a realistic understanding of fair market value. Built on streaming data and optimised for live trading, BondDroid uses AI to quickly adapt its behaviour in real-time to variations in pricing.
“BondDroid is a next-generation pricing solution built for a modern institutional fixed income trader,” says Kristina Fan, CEO and Founder, 7 Chord. “2020 provided us with the ultimate test, and BondDroid passed with flying colors. 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.”
The LTX platform uses its patent-pending AI (LTX AISM) to create liquidity, digitalise workflows and increase efficiency in the corporate bond market and is being embraced by leading broker-dealers and asset managers.
