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.

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.

CNBC Squawk Box: Nasdaq CEO Adena Friedman on new partnership with Airbus

Adena Friedman, president and CEO of Nasdaq, joins CNBC's “Squawk Box” at the World Economic Forum in Davos to discuss.

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