Seven top sell-side banks invested $25.4 million to launch a data network for derivatives that aims to slash costs and delays for all.
The biggest firms have a joint incentive to create a shared platform to fix chronic issues in exchange traded derivates processing, like fragmentation and lack of transparency.
Bank of America, Barclays, Citi, Goldman Sachs, JPMorgan, Wells Fargo, and BNP Paribas just invested $25.4 million in FIA Tech and its Trade Data Network (TDN) initiative.
TDN – which currently includes 16 banks and brokers and 40 investment managers and hedge funds – aims to add cohesion and transparency to exchange traded derivatives post-trade processing. It will ultimately reduce overall costs and clearing delays for brokers.
This group investment is just the latest example of top firms banding together on a tech solution that serves their collective interests: Insights Distilled previously covered efforts to report scams and combat fraud, connect various blockchains, and bring trust to carbon credit trading.