FIA Tech, a technology provider in the futures industry, has launched the third phase of its initiative to simplify fee and commission management in exchange traded derivatives, with the goal of bringing clarity to the cost of trading and clearing including exchange fees, clearing commissions and execution brokerage.
The execution and clearing cost analytics (XCA) are available to clients via a dashboard as well as an API layer which can be integrated into execution and post-trade systems for clients on FIA Tech’s Trade Data Network (TDN). The integrated solution allows clients to identify and resolve fee and commission discrepancies on trade date, integrated into the allocation and confirmation workflows on TDN.
In February, the company announced TDN was live with real time fee and commission matching, reconciliation, and resolution, following the launch of FIA Tech’s Fee and Commission Repository which brought the central storage of information on exchange and clearing fees, commissions and regulatory fees. Fee and commission breaks are the largest source of matching breaks in the ETD market.
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 supported by over 20 banks/brokers and 40 investment managers/hedge funds with a total AUM of $34tn. It has coverage of all exchanges and CCPs, with support of clearing and executing firms representing over 80% of the global futures volumes.
