FIA Tech, a leading technology provider in the futures industry, today announced that its Trade Data Network is now live with real time fee and commission matching, reconciliation and resolution, allowing the buyside complete transparency into one of the biggest sources of operational frustration for the exchange traded derivatives industry.
This marks the go-live of the second phase of FIA Tech’s initiative to improve fees and commission related operational issues for the buyside, following the launch of FIA Tech’s Fee and Commission Repository which brought the central storage of golden source information on exchange and clearing fees, commissions and regulatory fees.
Fee and Commission breaks are by far the largest source of matching breaks in the ETD market and including them in TDN’s matching capabilities gives clients the ability to match in real time, depending on the capabilities of their brokers. Currently, managing these breaks takes up the bulk of ETD operations teams’ time.
Nick Solinger, President and CEO of FIA Tech, said: “93% of buyside firms in our recent industry survey stated T+0 processing gaps are driving significant operational costs and risks. It remains far too challenging for the ETD industry to manage the complexity of exchange fees, commissions, brokerage and regulatory fees across 80+ global exchanges. TDN is the first post-trade solution bringing all the golden source data on Brokerage, Fees and Commissions together in real-time from all participants - the clients, clearing firms, brokers and exchanges.”
The ETD market has long struggled with a lack of transparency and high volumes of varied and inconsistent data, with multiple sources, formats, timings, and standards. This hampers the accurate exchange of data and requires manual processes and duplicative reconciliations, making communication between participants slow and costly. TDN was created to integrate disparate post-trade ETD data in real time from multiple sources, including executing brokers, CCPs, clearing brokers and clients, and offer matching services to create a single trade lineage in a common, secure, standards-based ledger.
Funded by the market, TDN is already supported by over 20 banks/brokers and 40 investment managers/hedge funds with a total AUM of $34 trillion. It has a comprehensive coverage of all exchanges and CCPs, with support of clearing and executing firms representing over 80% of the global futures volumes. TDN is one of the only global trade ledger initiatives to gain widespread adoption and production deployment at scale, processing millions of transactions in real time each day.