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FIA Tech has announced that its Trade Data Network (TDN) is now live, offering real-time fee and commission matching, reconciliation, and resolution. The firm states that this development provides the buyside with complete transparency into significant operational challenges within the exchange-traded derivatives industry.
According to the announcement, this marks the second phase of FIA Tech’s initiative to address fee and commission-related operational issues for the buyside. The initial phase involved the launch of FIA Tech’s Fee and Commission Repository, which centralized storage of authoritative information on exchange and clearing fees, commissions, and regulatory fees.
The firm highlights that fee and commission discrepancies represent the largest source of matching breaks in the exchange-traded derivatives market. By incorporating these elements into TDN’s matching capabilities, clients can achieve real-time matching, contingent upon their brokers’ capabilities. Currently, managing these discrepancies occupies a substantial portion of exchange-traded derivatives operations teams’ time.
Nick Solinger, President and CEO of FIA Tech, stated, “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 firm notes that the exchange-traded derivatives market has long struggled with a lack of transparency and high volumes of varied and inconsistent data from multiple sources, formats, timings, and standards. This situation hampers accurate data exchange and necessitates manual processes and duplicative reconciliations, resulting in slow and costly communication between participants. TDN was created to integrate disparate post-trade exchange-traded derivatives data in real time from multiple sources, including executing brokers, central counterparties, clearing brokers, and clients, and to offer matching services to create a single trade lineage in a common, secure, standards-based ledger.
FIA Tech reports that TDN is already supported by over 20 banks and brokers, as well as 40 investment managers and hedge funds with a total of $34 trillion in assets under management. The network boasts comprehensive coverage of all exchanges and central counterparties, with support from clearing and executing firms representing over 80% of 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.
