Airbus' Skytra selects Nasdaq technology for derivatives trading venue
Airbus’ wholly owned subsidiary Skytra has selected Nasdaq, architect and provider of the world’s most widely adopted financial market infrastructure technology, to provide the core technology and clearing services for its derivatives trading venue.
Headquartered in London, Skytra was recently established to help the $1 trillion per annum air travel industry hedge its revenue risk through the trading of cash-settled futures and options contracts based on a series of Skytra Price Indices. This is the first time that the industry will have financial risk management instruments available to them specifically to address revenue volatility.
As part of the agreement, Nasdaq will deliver a full suite of marketplace systems, including the core matching engine, the regulatory reporting required under MiFID II, and the market surveillance and pre-trade risk management solutions required to safeguard the integrity of the trading venue. The systems will be hosted in Nasdaq’s data centres and the public cloud. Nasdaq will provide a fully managed service, including technical operations of all software and infrastructure.
To learn more, read the full press release.
What will Skytra do for the airline industry?
Re-imagine risk management and manage exposure
Skytra's derivative contacts and infrastructure provide an ability for the industry to manage revenue unpredictability.
Create predictable revenue streams for more reliable financial planning
The capital intensive air travel industry makes long-term financial commitments, but is challenged by short-term revenue visibility, where up to 90% of the tickets are booked within 90 days before take-off.
Support long-term sustainability goals
By helping to decrease revenue volatility risk and providing more risk management options, Skytra can help provide a basis for a more financially stable industry for the future.
Nasdaq Clearing’s selection is another important step forward in the development of our new derivatives trading platform for the benefit of the air travel industry.
How is Nasdaq playing a role in Skytra?
Robust, proven trading & clearing technology
Skytra will leverage the Nasdaq Financial Framework matching technology to underpin the new Multilateral Trading Facility (MTF), and utilize Nasdaq Clearing as the central counterparty (CCP) to counterparty every derivative contract traded.
Helping safeguard the market
Nasdaq Market Surveillance and Pre-Trade Risk Manager will be deployed to safeguard market integrity, as well as regulatory reporting to help meet MiFID II obligations
Value beyond the technology
Expertise in disaster recovery, experience with regulatory authorities and knowledge of requirements and more help to deliver value to Skytra beyond the technology.
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In The News
European planemaker Airbus is working with Nasdaq to develop a derivatives-based trading platform that will allow airlines to protect against swings in ticket prices.
Nasdaq, the US exchange, has won the contract to provide technology to Skytra, the derivatives exchange launched by Airbus, the European aerospace company, to enable airlines to manage volatility in ticket prices.
There is nothing that maddens online shoppers more than seeing air fares rocket just as they are about to click “buy”. Yet price turbulence may be an even bigger headache for airlines.
Learn more about the Skytra Team
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