LTX’s new request-for-quote (RFQ) protocol blends AI-powered pre-trade dealer selection analytics with liquidity aggregation capabilities.
RFQ+ facilitates larger trades by aggregating multiple dealer responses and is designed to complement LTX’s existing RFX protocol.
LTX’s Dealer Selection Scores allow a buy-side client to optimise the number of dealers to whom the client sends each RFQ.
After an RFQ+ is sent to an optimal group of dealers, multiple dealer responders can bid/offer for the size they each want. LTX aggregates the bids/offers, allowing the buy-side client to fulfil the block in one session with multiple dealers.
LTX CEO Jim Kwiatkowski said: “RFQ+ solves genuine client pain points and further electronifies the segment of the market that is still being traded bilaterally.”
While electronically traded volumes have grown in the corporate bond market in recent years, current electronic execution methods do not accommodate larger trades sizes, which continue to be traded bilaterally.
To date, more than 30 dealers and more than 80 asset managers have joined the LTX platform, representing a significant liquidity pool with over $7 billion in initiated firm orders and an average daily volume of over $25 billion in the Liquidity Cloud in Q1 2023.
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