Corporate bond trading platform LTX picks 7 Chord for intraday pricing

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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.

Jim Toffey, President, LTX and Chief Executive Officer, LiquidX.

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.