FIA Tech announced the launch of the third phase of its initiative to simplify fee and commission management in exchange traded derivatives (ETDs), bringing clarity to the cost of trading and clearing including exchange fees, clearing commissions and execution brokerage.
The execution and clearing cost analytics (XCA) can be integrated into execution and post-trade systems for clients on FIA Tech’s Trade Data Network (TDN) and allows clients to identify and resolve fee and commission discrepancies on trade date, integrated into the allocation and confirmation workflows on TDN.
This marks a further step in FIA Tech’s journey to allowing the buyside complete transparency into one of the biggest sources of operational frustration for the ETDs industry.
Fee and commission breaks are 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 in a statement: “T+0 processing gaps continue to impose substantial operational costs and risks, especially for buyside firms. The whole ETD industry still struggles to navigate the mess of exchange fees, commissions, brokerage, and regulatory charges across more than 80 global exchanges. TDN is the first post-trade solution to unify golden source data on brokerage, fees, and commissions in real time—connecting clients, clearing firms, brokers, and exchanges into a single, transparent ecosystem.”
The ETD market struggles with a lack of transparency and high volumes of varied and inconsistent data, with multiple sources, formats, timings, and standards. TDN was created to integrate 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 comprehensive coverage of all exchanges and CCPs, with support of clearing and executing firms representing over 80% of the global futures volumes. TDN processes millions of transactions in real time each day.