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Ten global clearing firms make strategic investment in FIA Tech

Newly capitalized firm aims to bring greater efficiency and resilience to the markets

16 June 2021

Washington, DC -- Today, FIA announced an investment of $44 million by ten leading clearing firms to fund the strategic growth of FIA Tech. The capital raise will advance FIA Tech’s efforts to bring innovative solutions to the derivatives industry.

The newly capitalized FIA Tech will be investing to further the development of existing products that have successfully served the industry and launch innovative new solutions to improve market infrastructure across the listed and cleared derivatives industry. Under its new structure, FIA Tech will continue to work in partnership with the broader industry, including exchanges, clearinghouses, clearing firms and other intermediaries, independent software vendors, buyside firms and end users to bring efficiency to the exchange traded and cleared derivatives industry.

The investors are comprised of ABN AMRO Clearing, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, UBS, and Wells Fargo. FIA will retain an ownership stake in FIA Tech and will continue to serve on its board. Financial industry executive and former FIA chair Richard Berliand has agreed to join the board as independent director.

Walt Lukken, President and CEO of FIA said, “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. FIA looks forward to working with FIA Tech and industry stakeholders to solve the operational and technology challenges of the future.”

Nick Solinger, CEO of FIA Tech said: “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. With this investment, FIA Tech will be able to further address the needs of the market – buyside firms, end users, clearing firms, introducing brokers & market makers.”

Current FIA Tech services include digitally managing give-up agreements, meeting regulatory compliance requirements arising from CFTC, MIFID II and exchange regulatory compliance, reconciling and settling brokerage fees and providing reference data products that are required across the pre- and post-trade space in futures and equity options.

Click here to view FAQs regarding the FIA Tech transaction.

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