Broadridge’s LTX Executes Multi-buyer Credit Block Trade

AllianceBernstein has reportedly become the first buy-side firm to receive aggregated liquidity from multiple buyers on the same block trade. The trade was enabled by LTX, a Broadridge Company using LTX’s patented RFX protocol. AllianceBernstein tapped into its dealer’s customer network to sell a large block of bonds and access aggregated liquidity from four buyers at once and in real time. The buyers were a mix of buy- and sell-side firms. Participants entered orders via the LTX user interface or via FIX connectivity. Instead of putting dealers in competition, LTX enables dealers to distribute bonds across their customer network, with the intention of amplifying the buy-side firm’s opportunity to find liquidity and achieve best execution. Using LTX’s artificial intelligence, AllianceBernstein’s dealer identified the potential natural buyers of the bond within their customer network, leading to the RFX trading invitation. Customers invited to participate in the RFX were able to bid for their preferred amount of bonds and improve their price as needed to fulfill their order. To date, over 10 dealers and 40 asset managers representing a significant liquidity pool have joined the LTX platform, with an additional 50 firms in the pipeline to join at midyear.