NEW YORK, May 28, 2024 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) and FIA Tech
today announced they will partner to help reduce the complexity of post trade
data processing across the exchange traded derivative market. Nasdaq will
integrate its strategic clearing platform, Nasdaq Real-Time Clearing, into FIA
Tech's Trade Data Network.
The Trade Data Network combines trade data from buyside, brokers, clearing
houses and clearing members into a common framework, creating a shared golden
source of clearing activity for participating firms. 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.
Ultimately, the industry-leading functionality will help to substantially reduce
systemic inefficiency across the global post trade network.
Built over decades in a series of silos, much of the global post trade network
is highly fragmented with a high degree of non-standardized data exchanged
between market participants and infrastructure providers. This has led to a
sector characterized by multiple points of reconciliation where trading data and
cleared positions are verified across multiple systems, poor information flow
between participants, and instances where data is effectively lost in the
network. Collectively, it represents a substantial inefficiency and cost to the
industry.
It is a particular challenge for the data heavy exchange traded derivatives
market during periods of high volumes and volatility, which 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.
Through the Trade Data Network, FIA Tech provides market participants and post
trade service providers with the tools to improve middle and back-office
processes including trade-date clearing, give-ups, fee and commissions
management, and helps to eliminate duplicative reconciliations across these
functions.
Magnus Haglind, Senior Vice President and Head of Products, Marketplace
Technology, Nasdaq, said: "As a technology provider to over 20 CCPs globally,
Nasdaq has a powerful role to play in addressing systemic inefficiency across
the global post trade network. 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."
Nick Solinger, President and CEO, FIA Tech, said: "Nasdaq's integration of its
strategic Real-Time Clearing system into the Trade Data Network will increase
standardization and network adoption. We are excited to partner with Nasdaq on
this initiative to reduce operational inefficiencies."
Nasdaq's Financial Technology division provides mission-critical capital markets
and regulatory technology solutions to the financial services industry. As a
scaled platform partner, Nasdaq draws on deep industry experience and technology
expertise to help 3,500+ banks, brokers, regulators, infrastructure operators,
and buy-side firms solve their toughest operational challenges while advancing
industrywide modernization.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate
clients, investment managers, banks, brokers, and exchange operators as they
navigate and interact with the global capital markets and the broader financial
system. We aspire to deliver world-leading platforms that improve the liquidity,
transparency, and integrity of the global economy. Our diverse offering of data,
analytics, software, exchange capabilities, and client-centric services enables
clients to optimize and execute their business vision with confidence. To learn
more about the company, technology solutions, and career opportunities, visit us
on LinkedIn, on X @Nasdaq, or at www.nasdaq.com (http://www.nasdaq.com).
About FIA Tech
FIA Tech is the leading technology provider to the exchange traded derivatives
industry. Owned by a consortium of twelve leading clearing firms and the Futures
Industry Association (FIA), FIA Tech is committed to serving the industry and
launching innovative solutions to improve market infrastructure across the
listed and cleared derivatives industry. FIA Tech works in close partnership
with the broader industry, including exchanges, clearinghouses, clearing firms
and other intermediaries, as well as independent software vendors, buyside firms
and end users to bring efficiency to the exchange traded and cleared derivatives
industry.
Media Contacts:
Andrew Hughes
+44 (0)7443 100896
Andrew.Hughes@nasdaq.com (mailto:Andrew.Hughes@nasdaq.com)
Candice Adam
+44 7771 906 073
cadam@fia-tech.com (mailto:cadam@fia-tech.com)
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