FIA Tech Gets Funding for Trade Data Project
Posted by Colin Lambert. Last updated: June 14, 2023
FIA Tech says it raised $25.4 million in a second funding round led by six existing shareholders, Bank of America, Barclays, Citi, Goldman Sachs, J.P. Morgan and Wells Fargo, in addition to BNP Paribas.
As a result of its participation, BNP Paribas joins FIA Tech’s ownership consortium and will serve on its board of directors. The capital raise brings the total funding for FIA Tech to almost $70 million.
The firm says the funds will be used to accelerate the development of the Trade Data Network (TDN), an initiative that provides a shared ledger of trading information to address the fragmentation and lack of transparency in exchange traded derivatives (ETD) post-trade processing. The successful rollout of TDN is also expected to help reduce clearing delays for brokers and overall costs, FIA Tech says, adding the initiative currently includes 16 banks/brokers and 40 investment managers and hedge funds with combined assets under management of over $37 trillion.
The initial rollout of TDN is focused on allocations processing and trade confirmations, with trade lifecycle transparency across the multiple brokers and the clearinghouse on each trade. Additional features include benchmarking, metrics tracking and reporting to drive best practices across the ecosystem. The initiative is also designed to drive value for the independent software vendor community by reducing complexity in delivering services to clients, FIA Tech says.