Nasdaq and FIA Tech have partnered to reduce the complexity of post-trade data processing across exchange-traded derivatives markets.
As part of this effort, Nasdaq will integrate its settlement platform, Nasdaq Real-Time Clearing, into FIA Tech's trade data network.
The Trade Data Network will consolidate trade data from the buy-side, brokers, clearing houses and clearing members into a common framework, establishing a shared source of clearing activity for participating firms.
The integration of Nasdaq's settlement platform will increase the quantity and quality of post-trade data available to FIA Tech members and enable central clearing houses (CCPs) and end users who use Nasdaq's settlement platform to improve risk analysis, increase capital efficiency and reduce overall risk exposure.
The companies say this feature will help reduce systemic inefficiencies across the global post-trade network.
“There is a global need to upgrade legacy post-trade technology platforms, and interoperability must be at the heart of any new global framework,” said Magnus Haglind, senior vice president and head of product for marketplace technology at Nasdaq.
“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.”
FIA Tech's Trade Data Network provides market participants and post-trade service providers with the tools to enhance middle and back office processes such as trade day clearing, give-ups, and fee and commission management, and also helps eliminate coordination between these functions.
With the transition to T+1 settlement beginning today, May 28th, the post-trade landscape is expected to undergo its biggest upheaval in years.
Read more: T+1 Settlement: A Dramatic Post-Trade Change Impacting Trading Desks
“The integration of Nasdaq's strategic real-time settlement system into our trade data network will drive standardization and adoption of the network,” said Nick Solinger, president and CEO of FIA Tech.
