FIA Tech has launched the second phase of its Trade Data Network (TDN), introducing real-time fee and commission matching, reconciliation, and resolution. The update is aimed at improving transparency and efficiency in exchange-traded derivatives (ETD) post-trade processing, where fee and commission discrepancies remain a persistent challenge.
Fee and commission mismatches are the most frequent source of reconciliation breaks in the ETD market, requiring extensive manual intervention. The new functionality within TDN allows for real-time matching, though the effectiveness depends on brokers’ capabilities. This follows the earlier introduction of FIA Tech’s Fee and Commission Repository, which centralises reference data on exchange and clearing fees, commissions, and regulatory charges.
According to FIA Tech CEO Nick Solinger, a company survey found that 93% of buyside firms see T+0 processing gaps as a significant operational cost and risk factor. Managing fees across more than 80 global exchanges remains complex, with varied data sources and formats contributing to inefficiencies.
Standardisation in post-trade data
The ETD industry has long struggled with fragmented and inconsistent data flows, requiring manual reconciliation across multiple participants. TDN is designed to integrate post-trade data from executing brokers, central counterparties (CCPs), clearing brokers, and clients into a shared ledger, aiming to improve data standardization and reduce operational friction.
The initiative has gained industry backing, with participation from over 20 banks and brokers, as well as 40 investment managers and hedge funds managing a combined $34 trillion in assets. TDN now processes millions of transactions daily, positioning itself as one of the largest trade ledger initiatives in production. Whether it will significantly streamline ETD post-trade operations remains to be seen as adoption progresses.
