Nasdaq (NASDAQ:NDAQ) and FIA Tech announced today that they will collaborate to help reduce the complexity of post-trade data processing in the exchange-traded derivatives 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 and clearing members into a common framework, creating a common golden source of clearing activity for participating firms.
The integration of Nasdaq’s clearing platform will reduce friction and significantly improve the volume and quality of post-trade data available to FIA Tech’s 8,000+ members, while empowering central counterparty clearinghouses (CCPs) that use the Nasdaq clearing platform and end users with the ability to perform more reliable risk analysis, operate with greater capital efficiency and lower overall risk exposure. Ultimately, the functionality will help substantially reduce systemic inefficiencies across the global post-trade network.
Through the Trade Data Network, FIA Tech provides market participants and post-trade service providers with the tools to improve middleware and support processes such as trade date clearing, abandonments, fee and commission management, and helps eliminate duplicate agreements between these functions.
Magnus Haglind, Senior Vice President and Head of Products, Marketplace Technology, Nasdaq, said:
“As a technology provider to more than 20 CCPs worldwide, Nasdaq has a strong role to play in addressing systemic inefficiencies across the global post-trade network. There is a global need to upgrade legacy technology platforms post-trade and interoperability must be at the heart of the new global framework. A consistent operating model for data, systems and processes can deliver significant benefits to market participants through more efficient use of capital and a more resilient operating model.”
Nick Solinger, President and CEO, FIA Tech, said:
“The integration of Nasdaq’s strategic real-time clearing system into the Trade Data Network will increase the standardization and adoption of the network. We are excited to partner with Nasdaq on this initiative to reduce operational inefficiencies.”