LTX, a subsidiary of Broadridge Financial Solutions, has launched of BondGPT, an application powered by OpenAI GPT-4 that answers bond-related questions and assists users in their identification of corporate bonds on the company’s platform.

By incorporating real-time liquidity information from the LTX Liquidity Cloud, this application, the company says, will “simplify workflows and bring further efficiency to users in their often-complex bond selection and portfolio construction processes, benefiting asset managers, hedge funds and dealers”.

BondGPT offers a large language model chat interface that leverages the company’s Liquidity Cloud and bond similarity technology and filters based upon a vast set of user-adjusted parameters to assist in identifying bonds with similar characteristics to meet traders’ real-time liquidity needs.

The application combines the power of GPT-4 with the company’s analytics and comprehensive underlying dataset for “data timeliness, accuracy and compliance in a highly regulated financial services sector, avoiding hallucination issues common in other implementations”.

To date, more than 30 dealers and more than 80 asset managers have joined the platform, representing a significant liquidity pool. The company, it says, has attracted many of the world's leading asset managers and dealers, with over US$7 billon in initiated firm orders and an average daily volume of over US$25 billion in the Liquidity Cloud in Q1 2023.

“Emerging technologies, such as generative AI, hold immense potential to drive electronification and transparency in the corporate bond market,” adds Jim Kwiatkowski, the company’s CEO. “By increasing the use of data and applications like BondGPT, market participants can inform and expedite vital pricing decisions, facilitate counterparty selection and broaden liquidity access.”