Nasdaq & FIA Tech will integrate key offerings to create the Trade Data Network.
Exchanges company Nasdaq and technology provider FIA Tech are partnering to ease the post-trade data processing across exchange-traded derivative (ETD) markets, officials say.
“Nasdaq will integrate its strategic clearing platform, Nasdaq Real-Time Clearing, into FIA Tech’s Trade Data Network,” according to the announcement. FIA Tech, which serves the ETD industry, is owned by a consortium of 12 clearing firms and the Futures Industry Association (FIA).
The Trade Data Network will combine trade data from buy-side firms, brokers, clearinghouses, and clearing members and put it “into a common framework, creating a shared golden source of clearing activity for participating firms,” officials say.
“Integrating Nasdaq’s clearing platform will reduce friction and significantly enhance the volume and quality of post-trade data available to FIA Tech’s 8,000+ members, while empowering central counterparty clearinghouses (CCPs) using Nasdaq’s clearing platform and end-users with the ability to conduct more reliable risk analysis, operate with greater capital efficiency, and lower overall risk exposure,” officials say.
The “data heavy exchange-traded derivatives market during periods of high volumes and volatility … has historically lacked a standardized approach to addressing reconciliation issues or provision of timely data to end clients. Inconsistent standards, a lack of common trade identifiers, and inadequate tools for collaborating and communicating across the industry prevent a coherent flow of data and timely resolution,” officials say.
The Trade Data Network will enable FIA Tech to provide “market participants and post-trade service providers with the tools to improve middle and back-office processes including trade-date clearing, giveups, fee and commissions management, and helps to eliminate duplicative reconciliations across these functions,” officials say.
“There is a global necessity to upgrade legacy post trade technology platforms, and interoperability must sit at the heart of the new global framework. A consistent operating model for data, systems and processes can deliver substantial benefits to market participants through more efficient use of capital and a more resilient operating model,” says Magnus Haglind, senior vice president and head of products, Marketplace Technology, Nasdaq, in a prepared statement
The Nasdaq Financial Technology division provides mission-critical capital markets and regulatory technology solutions to banks, brokers, regulators, infrastructure operators, and buy-side firms.
Need a Reprint?