HSBC has become the second customer to go live with the newly launched repo solution on Broadridge’s Distributed Ledger, which launched in October. The lender uses distributed ledger technology and smart contracts to achieve efficiency in its operations. According to the company, it reduces settlement costs, improves scalability and reduces operational risks in financial institutions.
Horacio Barakat, Head of Digital Innovation at Broadridge, said: “This marks another major milestone in our journey to revolutionize global repo market infrastructure, underscoring the tremendous value and transformative potential of DLR. We equip financial institutions with the ability to reduce risk and operational costs, while unlocking improved liquidity.”
Broadridge has continued to use distributed ledger capabilities to improve its global repo market. The company plans to support several transaction types, with monthly volumes of $1 trillion.
In addition, the NYSE-listed fintech company uses artificial intelligence technology to improve its products and services. In October, Broadridge unveiled BondGPT+, a generative AI tool that aims to improve the way corporate clients access and process complex bond data.
An enhancement of its predecessor BondGPT, this new application combines the power of OpenAI GPT-4 technology with proprietary solutions from Broadridge’s subsidiary, LTX. It enables companies to integrate their data, including third-party datasets, to ensure a secure and comprehensive approach to bond-related queries.
LTX CEO Jim Kwiatkowski highlighted the positive feedback we have received since launching BondGPT in June 2023. He stated: “Based on that feedback, we quickly moved to include customers’ own data, as well as a set of new features in the second generation of BondGPT.”
Broadridge embraces new technologies
In addition, 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 transactions by aggregating responses from multiple dealers. BondGPT+ provides a single natural language interface for fixed income professionals.
Despite the growth in electronically traded volumes, larger transactions in credit markets have traditionally been executed bilaterally. LTX’s RFQ+ protocol, built on customer feedback and integrating the AI-powered BondGPT, aims to change this paradigm. The protocol addresses challenges in executing large trades by combining AI-powered pre-trade Dealer Selection Scores with a unique liquidity aggregation feature.