Clearing firms invest $44 million in FIA Tech to support derivatives market innovation

Goldman Sachs, JP Morgan and UBS part of almost a dozen firms which took part in the strategic investment.

Ten global clearing firms have taken part in a $44 million investment in FIA Tech, a subsidiary of the Futures Industry Association (FIA) to support its strategic growth and help it innovate the derivatives industry.

The firm will use the strategic funding to further develop existing products serving the derivatives markets and launch new solutions to improve market infrastructure across the listed and cleared derivatives industry.

The list of investors included ABN AMRO Clearing, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, UBS, and Wells Fargo.

FIA Tech confirmed that it will continue to work in partnership with exchanges, clearinghouses, clearing firms, independent software vendors, buy-side firms and end users, and that FIA will retain an ownership stake in FIA Tech.

“This capital raise for FIA Tech will allow it to expand on its mission, creating innovative technologies for the exchange traded and cleared derivatives industry,” said Walk Lukken, president and chief executive officer of FIA.

“FIA looks forward to working with FIA Tech and industry stakeholders to solve the operational and technology challenges of the future.”

Currently FIA Tech offers services across management of give-up agreements and meeting regulatory compliance requirements arising from Commodities Futures Trading Commission (CFTC), MIFID II and exchange regulations.

It also helps firms with reconciling and settling brokerage fees and providing reference data products that are required in futures and equity options pre- and post-trade.

“More than 8,000 market participants globally rely on FIA Tech’s services, and we are excited to bring greater innovation and efficiency to their firms, clients and investors,” said Nick Solinger, chief executive officer of FIA Tech.

“With this investment, FIA Tech will be able to further address the needs of the market – buy-side firms, end users, clearing firms, introducing brokers & market makers.”