New investor BNP Paribas, alongside existing shareholders Bank of America, Barclays, Citi, Goldman Sachs, JP Morgan, and Wells Fargo, have closed a $25.4 million funding round aimed at expediating the development of FIA Tech’s Trade Data Network (TDN) initiative.
The TDN initiative provides a shared ledger of trading information specifically aimed at addressing current fragmentation and lack of transparency which exists in exchange traded derivatives (ETD) post-trade processing.
According to the business, the initial rollout “is focused on allocations processing and trade confirmations, with trade lifecycle transparency across the multiple brokers and the clearinghouse on each trade”.
Its roll-out is also set to reduce overall costs and clearing delays for brokers, as well as increasing value for independent software vendors through reducing the complexity of delivering services to clients.
Currently, the TDN comprises 16 banks and brokers and 40 investment managers and hedge funds. Altogether the combined assets under management is more than $37 trillion. Its offering spans across metrics tracking, benchmarking and reporting.
Speaking to the strategic funding for the next stage of development, Nick Solinger, president and chief executive of FIA Tech, said: “TDN has already proven its operational resiliency for participants in recent times of high market volumes and volatility.”
Following its investment, BNP Paribas now forms part of FIA Tech’s ownership consortium and is set to serve on its board of directors.
Raphael Masgnaux, head of global technology platforms for global markets at BNP Paribas, highlighted the close relationship the business has shared with FIA Tech over the years and added: “Technology is a central pillar of BNP Paribas’ GTS 25 (Growth Technology Sustainability) Strategic Plan, and the TDN initiative promises to deliver a pivotal platform for the ETD industry.”
Back in 2021, ten global clearing firms took part in a $44 million investment in FIA Tech to fund the spin-off of the firm and develop its existing products serving the derivatives markets.
Investors at that time included: ABN AMRO Clearing, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, UBS, and Wells Fargo.