HSBC has become the second client to go live on the newly launched repo solution on Broadridge’s Distributed Ledger, launched in October. The lender is leveraging distributed ledger technology and smart contracts to achieve efficiency in its operations. According to the company, it reduces settlement costs, enhances scalability, and decreases operational risks among financial institutions.
Horacio Barakat, the Head of Digital Innovation at Broadridge, mentioned: “This marks another significant milestone in our journey to revolutionize global repo market infrastructure, underscoring the immense value and transformative potential of DLR. We are equipping financial institutions with the capability to lower risks and operational expenses while unlocking enhanced liquidity.”
Broadridge has continued to utilize distributed ledger capabilities to enhance its global repo market. The company plans to support various transaction types, with its monthly volumes at $1 trillion.
Besides that, the NYSE-listed fintech firm is tapping artificial intelligence technology to enhance its products and services. In October, Broadridge unveiled BondGPT+, a generative AI tool that aims to enhance how enterprise clients access and process complex bond data.
This new application, an enhancement of its predecessor BondGPT, combines the power of OpenAI GPT-4 technology with proprietary solutions from Broadridge’s subsidiary, LTX. It allows enterprises to integrate their data, including third-party datasets, to ensure a secure and comprehensive approach to bond-related queries.
Jim Kwiatkowski, the CEO of LTX, highlighted the positive feedback received since the launch of BondGPT in June 2023. He stated: “Based on that feedback, we have moved quickly to incorporate clients’ own data as well as a range of new features in the second generation of BondGPT.”
Broadridge Embraces New Technologies
Additionally, LTX unveiled the Request for Quote protocol, a platform that combines pre-trade dealer selection analytics and liquidity aggregation. It aims to facilitate the processing of larger trades by pooling responses from multiple dealers. BondGPT+ provides a single natural language interface for professionals dealing with fixed income.
Despite the growth in electronically traded volumes, larger trades in the credit markets have traditionally been executed bilaterally. LTX’s RFQ+ protocol, built on client feedback and integrating the AI-powered BondGPT, seeks to change this paradigm. The protocol addresses challenges in executing sizeable transactions by merging AI-powered pre-trade Dealer Selection Scores with a unique liquidity aggregation function.
