FIA Tech has selected Broadridge’s COMS (Connectivity, Onboarding, and Monitoring Service) solution along with its NYFIX Order Routing Network to provide clients with interoperability across networks and promote standardization in the exchange-traded derivatives (ETD) space.
In today’s financial landscape, where FIX connectivity has become commoditized, many firms are finding it advantageous to outsource this essential infrastructure. By doing so, companies can reduce operational costs, simplify management, and ensure faster, more reliable connections without the burden of maintaining in-house systems.
This shift reflects a broader trend where financial firms are focusing on their core competencies by leveraging external solutions for connectivity. Partnering with specialized providers allows these firms to allocate more resources to innovation and client services, driving overall growth and competitiveness in the market.
Streamlining the onboarding process for brokers and clients
Broadridge and FIA are partnering to streamline the onboarding process for brokers and clients to the Trade Data Network (TDN), aiming to improve operational efficiency and transparency. This collaboration will simplify the onboarding of counterparties, allowing clients to integrate more quickly and efficiently into the TDN ecosystem.
Clients joining the TDN will also benefit from Broadridge’s extensive broker counterparty network and the reliability of the NYFIX Order Routing Network. This combination promises faster processing and greater connectivity, helping clients accelerate their operations and enhance their trading activities.
Michael Torretta, Head of Strategic Alliances at FIA Tech, said: “TDN is focused on improving the ETD market structure, simplifying post-trade and enhancing operational resiliency. Connecting TDN with Broadridge’s widely used network for ETD is an example of our strategy to create value for our partners, their clients and increase interoperability to our network.”
George Rosenberger, General Manager for NYFIX at Broadridge Trading and Connectivity Solutions, commented: “We are thrilled to work with FIA Tech, a renowned name in the futures and options industry. Broadridge’s COMS and NYFIX offerings will move the industry forward.”
FIA Tech, owned by a consortium of twelve leading clearing firms and the Futures Industry Association (FIA), aims to bring efficiency to the exchange-traded and cleared derivatives industry by partnering with exchanges, clearinghouses, clearing firms, and other intermediaries, as well as ISVs, buy-side firms, and end users.
A recent independent software vendor (ISV) to join the FIA Tech Databank Network was Eventus, which also integrated FIA Tech’s cross-reference symbology and core contract specifications data into its client offering. The trade surveillance and market risk solution provider was the first to embed Databank into its service offering to clients. The network unifies reference data from over 80 exchanges and central counterparties (CCPs), leading index providers including FTSE, MSCI, S&P, STOXX, ISVs, and data vendors EDI and Factset.
Nasdaq integrated Nasdaq Real-Time Clearing into FIA Tech’s Trade Data Network
Nasdaq recently integrated its strategic clearing platform, Nasdaq Real-Time Clearing, into FIA Tech’s Trade Data Network. To reduce the complexity of post-trade data processing across the exchange-traded derivative market, Nasdaq and FIA Tech have teamed to provide market participants and post-trade service providers with the tools to improve middle and back-office processes including trade-date clearing, give-ups, fee, and commissions management, and help to eliminate duplicative reconciliations across these functions.
Much of the global post-trade network is highly fragmented with a high degree of non-standardized data exchanged between market participants and infrastructure providers. This has led to a sector characterized by multiple points of reconciliation where trading data and cleared positions are verified across multiple systems, poor information flow between participants, and instances where data is effectively lost in the network. Collectively, it represents a substantial inefficiency and cost to the industry.
It is a particular challenge for the data-heavy exchange-traded derivatives market during periods of high volumes and volatility, which has historically lacked a standardized approach to addressing reconciliation issues or provision of timely data to end clients. Inconsistent standards, a lack of common trade identifiers, and inadequate tools for collaborating and communicating across the industry prevent a coherent flow of data and timely resolution.
The integration will reduce friction and significantly enhance the volume and quality of post-trade data available to FIA Tech’s 8,000+ members while empowering central counterparty clearinghouses (CCPs) using Nasdaq’s clearing platform and end-users with the ability to conduct more reliable risk analysis, operate with greater capital efficiency, and lower overall risk exposure. The functionality will help to substantially reduce systemic inefficiency across the global post-trade network.
