Broadridge’s LTX granted patent for RFX protocol to improve corporate bond trading
Broadridge Financial Solutions has secured a patent from the US Patent and Trademark Office for LTX, a Broadridge company. The patent covers its artificial intelligence (AI)-driven RFX digital trading protocol technology, which enables broker-dealers to maximise liquidity, efficiency and execution for their buy-side customers while minimising information leakage.
“Broadridge has been investing in the development of this technology for several years to help our dealer clients and their buy-side customers generate more efficiencies in the front office,” says Chris Perry, President of Broadridge. “This patent award recognies Broadridge’s commitment to delivering innovative solutions that leverage next-gen technologies to help clients do business smarter and more efficiently.”
The patented RFX protocol empowers broker-dealers to unlock more value from their data and customer network. Using RFX, broker-dealers can intelligently identify and efficiently aggregate liquidity across multiple natural buyers bidding for their desired amount of bonds, which in turn helps them deliver improved best execution to their customers.
The proprietary innovation pairs LTX’s powerful AI and cloud technology with Broadridge’s leadership in fixed income and equities post-trade processing, which processes over U.S. $10 trillion in notional volume per day across 40-plus dealer clients.
“Our patented RFX protocol is the most significant improvement for corporate bond trading in the last 20 years since RFQ,” says Jim Toffey, Co-founder and CEO of LTX. “We are thrilled to be awarded this patent as an acknowledgement of our ground-breaking innovation that will take the bond market to the next level.”
The patent also helps institutional investors understand pre-trade liquidity for selecting the right dealer with the strongest customer network of natural buyers and sellers to intermediate an RFX and increase the likelihood of trade execution.