FIA Tech Launches Secure Lockbox for Indirect Clearing Data

FIA Tech is pleased to announce the expansion of its Owner & Controller Repository (OCR) service to securely and confidentially store data for firms offering indirect clearing services under MIFID II.  The new Indirect Clearing Lockbox capability allows indirect clearers to store their client account data securely to be accessed by their clearing member only in a default scenario, ensuring clients have the full protection of new segregated clearing models provided for under MIFID II.

To bolster client protections, MiFID II established a new category of omnibus clearing; the Gross Omnibus Segregated Account (GOSA). GOSA accounts may be used by market participants in an indirect clearing arrangement where they clear through an Indirect Clearer (Direct Client of Clearing Member) which accesses the clearinghouse via a third-party Clearing Member which services the Indirect Clearer and, by extension, all their Indirect Clients.

In this new clearing model, Indirect Client positions and collateral are held separately at the Clearing Member to insulate those assets from financial instability with the Indirect Clearer. In addition to these financial protections, Indirect Clients are given an assurance of anonymity, which has created the need for a trusted third party to store Indirect Client information to be accessed by the Clearing Member only in the event of a default of the Indirect Clearer.

To facilitate compliance with these new requirements, FIA Tech’s Indirect Clearing Lockbox allows for the secure, confidential storage of indirect client information including contact information, account ownership information and other data needed to aid indirect clients in the event of a default between the Clearing Member and Indirect Clearer.  Once the Lockbox is opened in a default, the Clearing Member may then work with the Indirect Client to make or receive margin payments, liquidate positions or port positions to another clearing firm.

FIA Tech’s Owner & Controller Repository is used for secure client data storage for regulatory reporting, client gross margin compliance and indirect clearing lockbox, securely storing account data on over 470,000 accounts across 45 clearing members globally.

 

About FIA Tech        

FIA Tech is a wholly-owned subsidiary of FIA, collaborating with the global futures industry to improve operational efficiency via integrated, cloud-based systems.  FIA Tech provides key services and processes including managing legal agreements, settling brokerage, meeting compliance requirements and automating reconciliation. Current services include Docs (give up agreements), Fees (brokerage settlement), Recs (reconciliations), Owner & Controller Repository service (regulatory compliance and indirect clearing lockbox) and the FIA Tech Databank with its suite of position limit and exchange fee data. For more information, please visit www.fia-tech.com

Contact: Andrew La Manna +1 (202) 772-3089 alamanna@fia-tech.com

FIA Tech Goes Live with MiFID II Position Limits Databank and Spot Month Calendar

FIA Tech is pleased to announce the expansion of its Position Limits Databank service to encompass position limits for commodity derivatives as set by European regulators under MiFID II.  The enhanced position limits service went live as planned ahead of the launch of MiFID II on January 3 2018.

To date, seven exchange groups have issued MiFID II limits which have been captured in FIA Tech’s Position Limit Databank. Additional exchanges will be added as their limit rules are submitted to regulators and approved. Under MiFID II, exchanges and their National Competent Authorities are defining limits on commodity derivatives for the spot month and all contract months outside of the spot month. FIA Tech’s Position Limit Databank gives subscribers both the “liquid” contracts, which will have bespoke limits set per contract, along with the “new and illiquid” contracts which are given a general limits structure of 2,500 lots at the spot and other months level.

Now included in the MIFID II offering, FIA Tech has released trading calendar functionality. This new feature will include the date the next MIFID II designated liquid contracts go into spot along with the number of business days until the spot dates go into effect, giving subscribers an additional tool to accurately calculate spot and other month position limits.

 “With this enhanced capability, FIA Tech’s Position Limits Databank provides an essential service allowing firms to easily track and monitor aggregated positions globally, including economically equivalent positions across exchanges, to comply with the position limit regime defined in RTS 21 of MiFID II,” said Mark Davis, FIA Tech’s SVP of Strategy.

“This is another step in our strategic plan to provide market participants and their technology providers with a consolidated golden source of reference data to improve efficiencies, reduce costs and create opportunity through standardization.”

FIA Tech’s Position Limits Databank is a globally aggregated database that includes accountability levels, reporting levels, position limits, contract aggregation requirements, ratios, spot and other month details, diminishing contract indicators, mini contract multipliers, CFTC referenced contracts, and settlement types. As all these factors vary by venue and contract, FIA Tech has a team of analysts who proactively monitor information being published by exchanges and regulators to provide a comprehensive, consolidated, forward looking, and reliable data source of position limits.

FIA Tech’s Position Limits Databank and Equity Option Positon Limits Databank provide daily coverage on more than 55,000 derivative contracts on 85 major global exchanges.

 

About FIA Tech

FIA Tech is a wholly-owned subsidiary of FIA, collaborating with the global futures industry to improve operational efficiency via integrated, cloud-based systems.  FIA Tech provides key services and processes including managing legal agreements, settling brokerage, meeting compliance requirements and automating reconciliation. The current core applications and services include Docs (EGUS agreements), Fees (brokerage settlement), Integrated Recs (reconciliation), OCR data service (regulatory compliance), MiFID Lockbox and the FIA Tech Databank with its suite of position limits and exchanges fees data. For more information, please visit www.fia-tech.com

Contact: Andrew La Manna +1 (202) 772-3089 alamanna@fia-tech.com