Nasdaq and technology provider FIA Tech have announced a partnership that will involve the integration of Nasdaq Real-Time Clearing into FIA Tech’s Trade Data Network. According to a press release from Nasdaq, the aim of the collaboration is to “reduce the complexity of post trade data processing across the exchange traded derivatives market”.
FIA Tech’s Trade Data Network puts together trade data from the buy-side, brokers, clearing houses, and clearing members into a common framework to create “a shared golden source of clearing activity”. The integration with Nasdaq is expected to “enhance the volume and quality” of this data, enabling users of Nasdaq’s clearing platform to “conduct more reliable risk analysis, operate with greater capital efficiency, and lower overall risk exposure”.
Nasdaq cites fragmentation as “a particular challenge for the data-heavy exchange traded derivatives market”. A lack of standardisation, common trade identifiers, and tools for collaborating and communicating across the industry have “prevent a coherent flow of data and timely resolution”. The ultimate goal of the new partnership is to “substantially reduce systemic inefficiency across the global post trade network”.
Magnus Haglind, senior vice president and head of Products, Marketplace Technology, Nasdaq, says, “There is a global necessity to upgrade legacy post trade technology platforms, and interoperability must sit at the heart of the new global framework. 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.”
