Nasdaq and FIA Tech have entered a partnership to reduce the complexity of post-trade data processing across the exchange traded derivative market.
As part of the move, Nasdaq will integrate its clearing platform, Nasdaq Real-Time Clearing, into FIA Tech’s Trade Data Network.
The Trade Data Network combines 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 clearing platform will increase the volume and quality of post-trade data available to FIA Tech’s members, alongside providing central counterparty clearinghouses (CCPs) using Nasdaq’s clearing platform and end-users with the ability to carry out improved risk analysis, operate with greater capital efficiency, and lower overall risk exposure.
The functionality will help reduce systemic inefficiency across the global post-trade network, according to the two firms.
“There is a global necessity to upgrade legacy post-trade technology platforms, and interoperability must sit at the heart of the new global framework,” said Magnus Haglind, senior vice president and head of products, marketplace technology at Nasdaq.
“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.”
FIA Tech’s Trade Data Network offers market participants and post-trade service providers the tools to bolster middle- and back-office processes, including trade-date clearing, give-ups, fee and commissions management, while also helping eliminate reconciliations across these functions.
The post-trade landscape is expected to experience it’s biggest shake up in years with the shift to T+1 settlement going live today, 28 May.
Read more: T+1 settlement: The seismic post-trade change impacting the trading desk
“Nasdaq’s integration of its strategic Real-Time Clearing system into the Trade Data Network will increase standardisation and network adoption,” said Nick Solinger, president and chief executive of FIA Tech.