Empowering broker-dealers and institutional investors to better connect and trade corporate bonds digitally, Broadridge Financial Solutions, Inc. (NYSE:BR), a global Fintech leader, today announced that the U.S. Patent and Trademark Office has granted LTX, a Broadridge company, U.S. Patent No.10922773. The patent covers its artificial intelligence (AI)-driven RFX digital trading protocol technology, which enables broker-dealers to maximize liquidity, efficiency and execution for their buy-side customers while minimizing 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," said Chris Perry, president of Broadridge. "This patent award recognizes 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 US $10trn 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," said 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.