The State of ETD Post-Trade Technology: How FCMs Are Planning Platform Investment
ETD clearing infrastructure has come a long way since the stress events of 2020. But legacy reliance, fragmentation and manual interventions still present costly burdens. A new report from Nasdaq and Acuiti examines how FCMs are prioritizing platform modernization, real-time data and risk management as buy-side demands and post-trade priorities evolve.
FCMs Are Increasing Post-Trade Investment
Volumes and volatility are growing, putting new strain on ETD clearing infrastructure. To keep pace in modern markets, clearing technology is being asked to process risk in real time, enable margin transparency and integrate seamlessly across asset classes and CCPs.
The challenge facing many future commission merchants (FCMs) is their existing technology stack was not built for this reality. Our research shows that 53% of FCMs cite reliance on legacy post‑trade systems as their top operational pain point.
The impact is compounded by fragmentation. 51% of firms identify data quality and fragmentation as a critical challenge, creating environments where risk, margin and collateral data are dispersed across multiple disparate systems. The result is slower insight, more costs, increased operational effort and limited flexibility.
In response, firms are taking action to invest in modernized platforms. 69% of FCMs plan to increase post‑trade investment over the next three years to gain automation, meet client demands and position for a future of AI/ML.
FCMs and Buy-Side Both Surveyed
We spoke to 50 senior executives at bank and non bank FCMs, as well as other clearing brokers globally and buy-side clients. Quantitative findings were complemented by in depth qualitative discussions across operations, technology and business leadership.
Assessing the Current State of ETD Post-Trade Infrastructure
FCMs are looking to technology vendors to reduce legacy reliance and costs, increase efficiency and solve pain points across operations:
49% Manual Effort
About half of firms cited reliance on manual interventions as a top operational pain point today.
35% Primarily Vendor
Just over a third of firms primarily used third-party platforms; 50% took a hybrid approach utilizing vendor and in-house.
35% Risk and Clients
FCMs see the biggest capabilities gaps in client reporting and margin and risk.
0% Very Consistent
No buy-side respondent rated their broker’s platform as “very consistent” in evaluation and treatment of risk exposures.
Future-Proofing Clearing: Investment Priorities for the Modern FCM
Read the Nasdaq and Acuiti report to understand current challenges with ETD clearing technology and how FCMs plan to address these gaps with platform modernization.
Where Can ETD Clearing Technology Improve?
Our research found a wide mandate among FCMs for post-trade infrastructure modernization. But where do they want to improve and what are the drivers of investment?
67%
Value Resilience and Reliability in a Third-Party Vendor the Most
64%
Cited Increased Automation as Their Primary Investment Driver
50%
Cited Client Demands for New Functions as Primary Driver
38%
Said Reference Data was Their Biggest Area of Improvement
How Buy-Side is Influencing Change
Buy‑side expectations are a central driver of FCM modernization. Asset managers and hedge funds increasingly expect clearing providers to deliver transparency, consistency and real‑time insight:
- 47% of buy‑side firms cite a lack of transparency into how margin is calculated as their top frustration,
- 38% point to inconsistent margin methodologies across products or CCPs.
Higher funding costs and volatility are forcing buy-side clients to seek more immediate margining to optimize performance. Clearing modernization is increasingly a question of market relevance—shaping how FCMs demonstrate control, credibility and value in the next phase of client relationships.
Tomorrow's Headlines
AI Importance
56% of respondents believe they risk falling behind in the market if they don’t start integrating artificial intelligence and machine learning.
Change Risk Top Concern
As FCMs embark on clearing technology transformation, 71% are most concerned with managing change risk.
Vendor Preference
62% of firms said they are more likely to pursue a vendor platform for their next upgrade, looking for optimized total cost of ownership and ease of integration.
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