Broadridge Pioneers AI Adoption in Bond Trading

Broadridge Pioneers AI Adoption in Bond Trading

Time Stamp: June 6, 2023 7:38 AM
Broadridge Pioneers AI Adoption in Bond Trading PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Broadridge
Financial Solutions (NYSE:BR) has revealed a game-changing addition to its LTX platform called
BondGPT. The AI technology aims to transform the complex bond selection and
portfolio construction processes, offering enhanced liquidity and price
discovery. According to the company’s representatives, the $10.3 trillion US
corporate bond market will benefit from this revolutionary technology.

BondGPT, an
application powered by OpenAI GPT-4, is a large language model (LLM) chat
function that allows users to ask questions and identify corporate bonds on the
LTX trading platform based on their specific criteria.

The
conversational interface uses LTX’s Liquidity Cloud and patent-pending bond
similarity technology to identify bonds with similar characteristics to meet
traders’ real-time liquidity needs. Combining the capabilities of GPT-4 with
LTX’s cutting-edge analytics and comprehensive underlying dataset, BondGPT
ensures up-to-date data, compliance and accuracy.

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

He
emphasized the potential of generative AI technologies like BondGPT to expedite
crucial pricing decisions, facilitate counterparty selection, and broaden
liquidity access. LTX is excited to drive the adoption of such innovations for
a smarter, more streamlined trading industry.

Screenshots from BondGPT. Source: LTX

Broadridge Wants to
Utilize AI

Martin
Koopman, the Chief Product Officer and Co-Head of AI at Broadridge confirmed that
BondGPT is now available to all Broadridge LTX clients. He added that BondGPT
is the first of many products and services that Broadridge plans to release using
this powerful technology, ensuring safety by leveraging their deep regulatory
knowledge and data privacy standards.

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

The LTX platform boasts more than 30 dealers and over 80 asset managers,
demonstrating a significant liquidity pool. With over $7 billion in
initiated firm orders and an average daily volume of over $25 billion in the
Liquidity Cloud in Q1 2023, LTX has attracted many of the world’s leading asset
managers and dealers.

Financial Companies Invest
in AI Solutions

Broadridge’s latest
move into the artificial intelligence industry is a clear confirmation that the
rising number of financial companies want to utilize the rising popularity of
ChatGPT and other AI solutions.

A month
ago, crypto derivative and copy trading provider Bitget joined forces with Fetch.ai,
an AI blockchain platform. Bitget has committed $10 million to support the
growth of the Fetch.ai ecosystem.

A few weeks
earlier, Tiger Brokers, the trading brand of a leading online brokerage firm
focusing on Chinese investors UP Fintech Holding Limited, presented an
alternative to the ChatGPT chatbot, dubbed TigerGPT. According to the company’s
press release, it is the first AI trading assistant released in the retail
trading industry.

AI has
numerous applications in the financial industry, ranging from fraud detection
to customer service. According to experts, artificial intelligence will definitely
change the landscape of FX/CFD industry. And now, the question is not ‘if’ but ‘how’.

Broadridge
Financial Solutions (NYSE:BR) has revealed a game-changing addition to its LTX platform called
BondGPT. The AI technology aims to transform the complex bond selection and
portfolio construction processes, offering enhanced liquidity and price
discovery. According to the company’s representatives, the $10.3 trillion US
corporate bond market will benefit from this revolutionary technology.

BondGPT, an
application powered by OpenAI GPT-4, is a large language model (LLM) chat
function that allows users to ask questions and identify corporate bonds on the
LTX trading platform based on their specific criteria.

The
conversational interface uses LTX’s Liquidity Cloud and patent-pending bond
similarity technology to identify bonds with similar characteristics to meet
traders’ real-time liquidity needs. Combining the capabilities of GPT-4 with
LTX’s cutting-edge analytics and comprehensive underlying dataset, BondGPT
ensures up-to-date data, compliance and accuracy.

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

He
emphasized the potential of generative AI technologies like BondGPT to expedite
crucial pricing decisions, facilitate counterparty selection, and broaden
liquidity access. LTX is excited to drive the adoption of such innovations for
a smarter, more streamlined trading industry.

Screenshots from BondGPT. Source: LTX

Broadridge Wants to
Utilize AI

Martin
Koopman, the Chief Product Officer and Co-Head of AI at Broadridge confirmed that
BondGPT is now available to all Broadridge LTX clients. He added that BondGPT
is the first of many products and services that Broadridge plans to release using
this powerful technology, ensuring safety by leveraging their deep regulatory
knowledge and data privacy standards.

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

The LTX platform boasts more than 30 dealers and over 80 asset managers,
demonstrating a significant liquidity pool. With over $7 billion in
initiated firm orders and an average daily volume of over $25 billion in the
Liquidity Cloud in Q1 2023, LTX has attracted many of the world’s leading asset
managers and dealers.

Financial Companies Invest
in AI Solutions

Broadridge’s latest
move into the artificial intelligence industry is a clear confirmation that the
rising number of financial companies want to utilize the rising popularity of
ChatGPT and other AI solutions.

A month
ago, crypto derivative and copy trading provider Bitget joined forces with Fetch.ai,
an AI blockchain platform. Bitget has committed $10 million to support the
growth of the Fetch.ai ecosystem.

A few weeks
earlier, Tiger Brokers, the trading brand of a leading online brokerage firm
focusing on Chinese investors UP Fintech Holding Limited, presented an
alternative to the ChatGPT chatbot, dubbed TigerGPT. According to the company’s
press release, it is the first AI trading assistant released in the retail
trading industry.

AI has
numerous applications in the financial industry, ranging from fraud detection
to customer service. According to experts, artificial intelligence will definitely
change the landscape of FX/CFD industry. And now, the question is not ‘if’ but ‘how’.

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