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Streamlining the complete trade lifecycle with NYFIX.
At Broadridge, we are laser focused on helping the buy and sell sides optimize their trading and operations with comprehensive, best-of-breed solutions. In many cases, that means helping them embrace a more multi-asset and multi-geography approach to doing business, which has increasingly become table stakes for success in today’s market landscape.
To navigate this shift, market participants need straight-through processing, real-time insight and a wide range of functionality to help maximize efficiency from origination to settlement. And as many traders have discovered, tools based on the FIX protocol – a common standard for the accurate and timely transfer of information concerning trades of securities and other assets – make this far easier to achieve.
Enter NYFIX, one of the industry’s largest, most stable and most flexible order routing networks. NYFIX is one of the newer members of the Broadridge family, but it’s already having a major impact on our business and our clients – and order routing is just the beginning.
Over the years, NYFIX has built a strong reputation and robust industry footprint, connecting more than 2,100 buy-side and sell-side participants and routing over 35 million messages daily. With that level of reach, it’s no surprise that NYFIX has been achieved consistent and broad recognition from the industry, including being named “Best Low Latency Trading Network” by WatersTechnology five of the past six years.
As a global fintech leader whose technology and operations platforms underpin the daily trading of over $9 trillion in securities, we at Broadridge have long considered the value that a proprietary FIX network could add for our clients. This encompasses not just market access, but workflow efficiencies as well – with enough flexibility and reach, a FIX network can be used for post-trade operations and even areas outside of capital markets, like wealth management. When we acquired Itiviti, the opportunity to bring NYFIX under our umbrella was a key driving factor.
In a year’s time, the acquisition has already proven to be highly beneficial to our business, and that’s largely due to enhancements and integrations that have extended the utility of NYFIX. For example, in 2021 NYFIX increased its already broad asset-class coverage, adding crypto, ETDs and fixed income. This enables our clients to streamline a greater portion of their increasingly multi-asset trading activities and allows us to leverage the NYFIX network to connect and add value across a greater portion of our global suite of solutions.
This new model has already produced powerful results. The integration of NYFIX with Broadridge Investment Management Solutions, announced last fall, has revolutionized post-trade processing for our clients. With NYFIX Matching, FIX-based identifiers automate the trade allocation, confirmation and affirmation process. That means buy-side firms can now match multiple asset classes on a single platform, drill down to granular details, seamlessly catch errors and work more quickly and efficiently overall.
That’s just the beginning. With tireless work from the seasoned technologists, we are actively exploring a wide array of NYFIX use cases across our enterprise. Today, we are nearly finished integrating NYFIX with two additional offerings: our LTX fixed income platform and the Broadridge Wealth Management platform.
The LTX corporate bond trading platform is a quintessential use case for NYFIX. Built on data science and our patented RFX trading protocol, the LTX platform enables both sides of the Street to gain a more complete view of pre- and post-trade liquidity, helping them transact more efficiently and achieve best execution more easily. Now, the integration with NYFIX means dealers using LTX can communicate directly with counterparties through specialized messaging, reducing cost and facilitating alpha generation.
With our wealth management business, it’s a similar story. Integration with NYFIX has unlocked optimized trade processing, streamlined business operations and more. The takeaway is clear: the FIX protocol isn’t just for trading anymore. With the right integrations in place, market participants can leverage FIX to achieve wholesale workflow transformation across the entire order lifecycle.
We are excited for the benefits that this round of integrations will offer to our clients. NYFIX has evolved to serve as not just a solution for market access and operations, but the connective fiber for our entire business, tying all our solutions together.
With this crucial groundwork complete, we are better positioned than ever to build new and improved FIX-based functionality for our clients, increasing the comprehensiveness and resiliency of our business. And on the client side, leveraging a single industry-leading vendor and a single widely used communication protocol for as many parts of their business as possible only makes sense. As we continue to integrate NYFIX ever more tightly with the larger Broadridge organization, we look forward to engaging with the industry to track their biggest pain points and plan our roadmap accordingly.
Bottom line: NYFIX is already playing a key role in helping our clients navigate market trends and complex workflows, and combined with Broadridge’s established solutions for capital markets, wealth management and more, it’s going to have an even bigger impact in the months and years ahead. If you’re interested in learning more, simply reach out to us. In the meantime, watch this space.