HSBC has become the second client to go live on repo solution by Broadridge's Distributed Ledger Technology (DLT), which was launched in October. The lender is leveraging DLT and smart contracts to achieve efficiency in its operations. According to the company, this reduces settlement costs, enhances scalability, and decreases operational risks.

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 DLT. We are equipping financial institutions with the capability to lower risks and operational expenses while unlocking enhanced liquidity."

Broadridge Elevates Global Repo Markets

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 (AI) 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 OpenAI's 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 approach to bond-related queries.

Jim Kwiatkowski, the CEO of LTX, highlighted the positive feedback received since the launch of BondGPT in June 2023: "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 recently unveiled the Request for Quote (RFQ) protocol. This innovative platform combines pre-trade dealer selection analytics and liquidity aggregation to streamline the processing of larger trades. It achieves this by pooling responses from multiple dealers, thereby facilitating more efficient trade execution.

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, Finance Magnates reported.

Building on this, LTX has developed the RFQ+ protocol, an evolution of the traditional RFQ system, built on client feedback and integrating the AI-powered BondGPT, which seeks to change this paradigm. This protocol is designed specifically to address the challenges inherent in executing large transactions in the credit market.