Liquidnet, an agency execution specialist, has announced a partnership with Boltzbit, an artificial intelligence company, to enhance its fixed-income primary markets operations. The collaboration is intended to improve the processing of new bond deals.

Liquidnet Integrates AI for Bonds

According to Liquidnet, the integration of Boltzbit's AI and machine learning technology has reduced the time required to process and display new bond announcements. The company estimates a 90% improvement in the time from receiving unstructured deal data to having bonds ready for trading.

Mark Russell, Head of Fixed Income Strategy at Liquidnet, said the new system allows for data interrogation through natural language queries. “Rather than rely on traditional Management Information reports, Boltzbit delivered a solution which allows us to interrogate the data via natural language queries, supported by dynamic reports,” Russell stated.

This isn't the first time that Liquidnet has embraced AI in the bond market. At the end of last year, the company announced a partnership with BondIT to enhance market insights for Liquidnet's 700+ fixed-income firms.

Liquidnet reports increased trading volumes in its new issue order book since launching its primary market offering in 2022. The company also states that European syndicate desk participation has grown to over 35 banks.

“We see GenAI as the next wave of technological innovation for financial services, with significant potential for productivity gains and the creation of new products and services,” Boltzbit's CEO and co-founder, Dr. Yichuan Zhang, commented on the potential impact of generative AI in financial services.

This partnership follows Liquidnet's previous collaborations with NowCM and BondAuction, as part of its efforts to modernize primary markets. The company says these partnerships aim to provide efficiencies and connectivity for investors, banks, and issuers.

Executive Changes at Liquidnet

Over the past two weeks, Liquidnet has announced two significant personnel changes. Tim Cunningham was appointed as the new Managing Director of Outsourced Foreign Exchange Trading and Sales at the beginning of the month. Previously serving as Director at Marex, Cunningham shared news of his new role on LinkedIn this Tuesday.

A week later, Jeffrey Crane was named Head of International for the Americas at Liquidnet. This appointment enhances the company's capabilities in cross-border trading, which includes operations across 57 global equity markets.

According to the latest financial report from Liquidnet, part of TP ICAP Group PLC, revenues for the first quarter of 2024 decreased by 4%. The Cash Equities business, the division's largest segment, saw a 7% increase in Q1 2024, building on the strong performance from the end of 2023.

However, despite this growth, the Agency Execution segment experienced a decline in revenue from the record highs of March 2023, which had been boosted by favorable market conditions that also benefited the Global Broking division.